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ozone2002 ( Date: 21-Jul-2008 14:20) Posted:
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almost 3% up for STI & han seng..
so fast forget that the economy is in deep shit..
Oh Creative is now a red chip huh. Guess it slowly changed colour from when it was a $60 stock to now.
Amazingly there could be poeple out there who think it could climb back up to a $20 stock
trader88.sg ( Date: 21-Jul-2008 08:32) Posted:
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Nikkei down!.. but i think today should rebound... overall trend still down..
Livermore ( Date: 20-Jul-2008 11:42) Posted:
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Recently there as a report in business times about analyst saying that in these turbulent times it is best to blue chips because they have established business model and more stable etc etc A very strange comment indeed. We don't buy a stock because it is "red, blue or yellow". Obviously we look at projected earnings and current valuation and bearing in mind market sentiment.
Creative is a blue chip but no way would I even consider buying it. In a global slowdown, all "colour" stock can get affected and that includes the favoured blue ones.
Africa... what project? which sector?
Got to be VERY clear one... else GG if anyhow try one africa stock...
Africa is a huge untap potential in infrastructure nd China is already assiting them in a big way. There has been strong interest in Afriocan currency now too.
China keen on developing Africa infrastructure
China's CDB seals Nigerian deal
(FT.com)
China's drive into Africa's financial services sector has taken a fresh turn, with China Development Bank entering a partnership with United Bank for Africa, one of Nigeria's biggest lenders.
The deal, sealed last month but not yet officially announced, expands the Chinese bank's ability to finance infrastructure projects in Africa.
News of the agreement follows last week's announcement that Industrial and Commercial Bank of China, another state bank, was buying a 20 per cent stake in South Africa's Standard Bank for $5.56bn.
CDB has not bought equity in UBA, which is listed on the Nigerian stock exchange, though the deal will help it expand in Africa.
The two deals mark the start of a transformation in Africa's banking industry, opening fresh channels for Chinese finance in a region which has previously been largely dependent on western companies and donors. Chinese banks are seeking local operators to channel billions of dollars into African projects.
CDB, which provides much of the financial muscle for infrastructure developments in China, refused to comment on Tuesday. Tony Elumelu, UBA's chief executive, told the Financial Times: "It provides us [with] an almost infinite amount of capital to execute projects." He added: "They will invest in any credit that we recommend."
By the CDB agreement, a copy of which has been seen by the Financial Times, Chinese staff from the bank will work with their counterparts at UBA's headquarters in Lagos to fund projects in West Africa.
Mr Elumelu said he hoped by the end of March to strike an agreement with CDB to finance a power project that would help to tackle Nigeria's chronic electricity shortages.
UBA, with a balance sheet of about $8bn, hopes to expand into as many as 12 African countries next year.
"It is no longer a question of funding capability, but about our ability to identify good projects," Mr Elumelu said. "Africa is a huge untapped market - but it takes those who understand African markets and African risks to take advantage."
CDB has more assets than the World Bank and Asian Development Bank combined, with $281bn of loans outstanding by the end of June.
Fannie, Freddie and the financials may have been mauled lately, but if there is one thing about the bear it's that he doesn't attack everyone equally.
Some sectors get savaged, while others merely only pullback. The key is knowing the difference.
Of course, it's those pullbacks that give investors the opportunity to take a nibble of their own. But to do so you have actually got to get in the cage with that nasty old bear.
That takes courage.
Savvy investors have it in spades. They head to the sounds of the guns, not away from them.
But today's markets present a different challenge of all their own - the guns are louder than they have been in 25 years. And with a greater recession looming, that bear may just be only warming up.
So you just can't jump into the cage and buy what you think is cheap. That's the "value trap" that has crushed the likes of Bill Miller-the famed Legg Mason guru.
So instead of concentrating on what looks "cheap" to guys like Miller, investors ought to be concentrating on the things that make stocks attractive in the first place.
That's growth, earnings, and more importantly these days - pricing power. That is how you get into the cage with the bear these days and live to tell about it.
That is what makes an "old economy" sector like steel industry investments attractive these days. They are one of the babies in the bath water.
Beating the Bear with Steel Industry Investments
Only dinged by the bear, steel is an industry that is still chugging along since demand remains high. And while auto sales and home construction are certainly down, that has only been something of a speed bump for steel. Energy, infrastructure, and agricultural uses for the product have more than filled the gap.
Then there is that old familiar story of world wide growth. It's gobbling up steel as fast as they can make it, scrap it or steal it. That is cutting into products that otherwise would be imported.
And it's not slowing down either, not by a long shot.
Demand from Brazil, Russia, India and China and other emerging economies will rise 6.7% this year to almost 1.3bn metric tonnes, according to the latest forecast by the International Iron and Steel Institute.
Moreover, growth in 2009 is set to rise by about 6.3%, according to the institute, which represents 180 steel makers across the world.
Increased pricing power is a result-even in the face of a downturn.
That not only has thieves stealing empty kegs and man hole covers but steel companies raising their prices and growing their margins.
In fact, steel prices have soared by almost 50 percent this year and could rise even higher as the cost of raw materials keeps goes higher and global demand increases. As a result, Goldman Sachs recently upped its steel price forecasts to $936 a ton this year. That same steel averaged $530 a ton at the end of last year
Moreover, the Goldman forecast puts the cost of steel for 2009 at $1000 a ton. Costs meanwhile are growing but going up less boosting margins.
On the flip side, a weaker dollar has also helped U.S. companies by raising the cost of imports. That has put American workers in a better competitive balance versus the rest of the world and protected domestic steel against "cheap imports".
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