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28-08-2013, 02:35 PM
what do u mean by strike price? sorry, not familiar.
for bad news, not sure how much of it is priced in to prop stocks already. if prop stock price is trading at 10-20% discount to RNAV I think we have to worry more abt bad news. if prop stock price is trading 60% discount to RNAV - and esp if co already has pre sold many of its projects like KSH - then the worry is less. In fact it would seem like the stock price is already pricing in 30-40% drop in physical property prices.
I think many prop stock owners already go in with open eyes that 2015-6 is going to see a big supply and perhaps even big drop in rental. Any property measure, any interest rate hikes, any regional crisis that in the end leads to 20-30% drop in physical prop prices is therefore within expectation. I would accumulate if prop stock prices drop another 10-20% from here.
Looking at chart, the target of the shortists are the more liquid stocks like KSH and CES. They are forcing a breakdown of the charts because many small developer stock charts are the best over the past 1 year compared to STI they have outperformed. sometimes this becomes the reason for shortists to target them as they think there is more meat in shorting them to cause a U-turn in trend or a breakdown in support.
for bad news, not sure how much of it is priced in to prop stocks already. if prop stock price is trading at 10-20% discount to RNAV I think we have to worry more abt bad news. if prop stock price is trading 60% discount to RNAV - and esp if co already has pre sold many of its projects like KSH - then the worry is less. In fact it would seem like the stock price is already pricing in 30-40% drop in physical property prices.
I think many prop stock owners already go in with open eyes that 2015-6 is going to see a big supply and perhaps even big drop in rental. Any property measure, any interest rate hikes, any regional crisis that in the end leads to 20-30% drop in physical prop prices is therefore within expectation. I would accumulate if prop stock prices drop another 10-20% from here.
Looking at chart, the target of the shortists are the more liquid stocks like KSH and CES. They are forcing a breakdown of the charts because many small developer stock charts are the best over the past 1 year compared to STI they have outperformed. sometimes this becomes the reason for shortists to target them as they think there is more meat in shorting them to cause a U-turn in trend or a breakdown in support.