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Look for businesses with recurring revenues.  Having repeat customers means that long-term capital expenditures can profitably return capital. Invest in manufacturers! For example, if we want to buy a can of Coca Cola, we wouldn’t care where we buy it from.

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Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor

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Recommended books for FA and TA.

CapitaMalls Asia: Interim dividend of 1.75c declared.

CapitaMalls Asia is slowly and steadily improving its EPS and increasing its DPS. The latest results are encouraging and affirmed my conviction that this stock is going to be worth much more in a few years' time.

1H 2013 EPS: 8.2 c
1H 2013 DPS: 1.75c

Payout ratio: 21.34%.

The company's malls in China show a high percentage growth in NPI of 12.1% while malls in Singapore only registered a 2% NPI growth, reflecting the mature market here. The company's strategy of being in China and being there early is paying off nicely.

CapitaMalls Asia owns real estate and I would like to buy at a discount to the net value of its assets, if possible. The number to look at? Its NTA/share of $1.78.

Of course, paying a bit more for professional managers and also growth that seems to be in the bag is not an unreasonable proposition. In fact, at $2.00, some might say that it is hardly expensive. Indeed, annualising its 1H 2013 EPS would mean a PER of 12.2x. Fair? I think so.

After all, we have to remember that CapitaMalls Asia is not only a developer and owner of malls, it also derives a significant portion of its income from REITs in the family. This income stream is recurring and dependable.

However, I am also corrupted by TA and it is clear that the stock is in a downtrend which started in February 2013. That was also the last time I blogged about the stock. Resistance for the week is at $2.04.

Weekly chart.

If resistance at $2.04 could be overcome convincingly (i.e. with high volume), then, the downtrend would have been broken and exciting times could be in store for fellow shareholders of CapitaMalls Asia.

If things turn out to be less than exciting, well, I will be sure to dip into my war chests to accumulate at prices closer to or below NTA/share.

See presentation: here.

Related post:
CapitaMalls Asia: Reduced exposure.