Evaluation Report

Details of the stock such as income statement and balance sheet, can be found in the question paper too.

Question 1

As a property analyst, you read with great interest the following headline:

“Govt eases some property cooling measures, cutting seller’s stamp duty and slightly relaxing TDSR rules

Joint statement MAS, MND, MOF”

Analyse the impact and likely outcome on the general residential property sector.

(10 marks)

Question 2

Appraise impact on the selected stocks, UOL and CapitaLand using the following techniques:

(a) Fundamental analysis

(15 marks)

(b) Determine their intrinsic values

(10 marks)

Question 3

Apply technical analysis and discuss on the trends of the TWO (2) stocks in Question 3, including entry and exit levels.

(15 marks)

Question 4

From the information gathered, design and draft a recommendation report on the 2 stocks in Question 3, using the reference:

STRONG BUY

(>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLD

(-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

FULLY VALUED

(negative total return i.e. > -10% over the next 12 months)

SELL

(negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

(5 marks)

Additional information for crafting the evaluation report:

– illustrations/diagrams

– Paginating the contents with a number to indicate which question it is addressing

– Suggested numbering sequence for report flow is answers to Q5, Q2, Q3 and Q4

– Each illustration/diagram should be no larger than a sixth of a A4 size paper

– Information from Appendices UOL and CapitaLand should be utilized