If I need to play property stocks, at this juncture, I would avoid Capitaland at all cost. There are many other nicer property stocks as opposed to Capitaland's chart. At the red line drawn, there was a level of huge resistance and sellers looking to cash out and cut loss if Capitaland ever hits that zone. From reading the chart, it also reveals that the time to long Capitaland is not here yet and there maybe more down side starting tomorrow.
Of course, that's the stock and it has nothing to do with the physical properties develop by Capitaland. Capitaland is still one of the premier and most recognizable developer in Singapore and has a good reputation of quality homes. In recent years, the stock has plummet from a high of $6.11 at 2007 to now after near 9 years later, the stock is at 2.94 as of yesterday and it did not recover. The stock looks like more weakness to come and the growth for this counter could be stale without much upside in the long term. The old adage says that when there is a crisis, look to buy blue chips at cheap price and keep. Ronald K says that when there is a crisis, look for developing stocks to long and which has much more potential than blue chips.
Look at MM2 Asia, the company was listed in SGX and went IPO on Dec 2014 and within a 9-12 months period, the stock had moved from $0.18 to a high of $0.8+ before the stock went for a stock split for 2 for 1 share. This is the power of growth stock and this is the returns I am looking for. MM2 Asia was a growth stock as compared to a blue chip but it's slowly climbing to be a mid cap soon? The difference is Capitaland is like a developed country while MM2 is a developing country, so if you want to make $, go to the developing country because the opportunities in the developed country is stale. My mission is to uncover more growth stocks and add into my arsenal so that when the time comes, I am ready to whack, buy, hold and keep. Anyone interested?
Ronald K - A Game Changer
