Allgreen: Looking to initiate a long position.

I was just reading Allgreen's 2010 Annual Report and I must say that I like the numbers:

EPS: 14.23c which means a PER of just 7.65x at today's closing price of $1.09 per share.

NTA per share: $1.62 which means it is currently trading at almost 33% discount to NTA.

Gearing (Net debt to equity): 0.18x (which I believe is very conservative).

Dividend per share: 5c (XD 5 May 2011) or a yield of 4.59% at today's price.

Technically, the counter could experience some near term weakness as recent attempt to move higher was half-hearted on lackluster volume. The descending 100dMA is still the resistance to watch and that is currently at $1.12. Volume has been increasing as price retreated. OBV has turned down rather sharply, a clear sign of distribution.

Connecting the lows of 24 Feb and 15 Mar would give us a trendline support and a move to test this support is likely as the Stochastics is still bordering on overbought. A correction of the overbought condition could see a weaker share price and I could initiate a long position at $1.06 or $1.07 (50dMA).

Capitaland: Testing support at $3.36.

I initiated a long position in Capitaland today at $3.38 and $3.36. This was after what I said in the last blog post on this counter: "The Fibo Fan connects the low of 17 March and the high of today. Now, what I am interested in are the positions of the golden ratios in the next few sessions. 38.2% would be at $3.38 and 50% would be at $3.32 in the next session. Notice how the 20dMA seems to coincide with the 50% line? This is likely to be a strong support, if tested. In between these two golden ratios, we find the 50dMA, still declining but gently so, at $3.36. This could provide some support as well."

So, am I going to put in another buy queue for tomorrow at $3.32? Nope, looking at the charts at the end of every day is what I do and the 50% Fibo Fan line is at $3.33 tomorrow. Before that, however, we could see price supported as it closes the gap at $3.34 (1 April). So, buy queues for tomorrow would be at $3.34 and $3.33 for me.

If I were to choose between Capitaland and CapitaMalls Asia, it would seem that the latter has stronger technicals. However, it would be wise not to put all the eggs in one basket, I guess.

Coincidentally, OCBC Investment Research just did a piece on Capitaland and I would like to share what they said here. Remember to take everything with a pinch of salt:
Chinese worries overwrought - BUY. With the Chinese government’s plan to build 36m low-income homes by 2015 and its increasing determination to curb property prices, we recognize the down-side risks from Chinese property prices. However, given CAPL’s current share price, we believe Chinese residential worries on CAPL are likely overwrought due to two reasons. First, Chinese residential exposure only takes up around 12% of CAPL’s total book assets (FY10, ex. cash). In addition, we believe major projects, such as the Paragon, are well thought-out and likely resilient in a weak market. We update our assumptions and maintain a BUY rating with a revised fair value of $4.10 (at parity to RNAV) versus $4.05 previously. Read complete report here.