How do you see your investing or trading success?

Which side do you see for SUCCESS?

Right side or Left side???

Happy in winning pennies but forgetting hidden losses in dollars.

 

Read? Measuring portfolio performance

To see both sides of SUCCESS in investing or trading, we should track and measure everything in our portfolio.

Portfolio = Current stocks value + Cash available for investing
               = Capital + Realised P/L + Un-Realised P/L

Barbell strategy

From http://www.investopedia.com

The barbell strategy is an investment strategy that involves purchasing both short-term and long-term bonds and securities but no intermediates (such as in a “laddered” approach).

The thinking behind this strategy is to help you, as an investor, diversify your portfolio and increase the probability of higher returns. The long-term investments will provide the benefit of higher interest rates and increasing value over time. Maintaining some holdings in short-term bonds will provide you with flexibility to take advantage of interest rate changes.

When using this strategy, you’ll want to keep your long-term bonds but be poised to make changes to your short-term investments (buy or sell as needed) if interest rates change. Evaluate your portfolio’s performance and then consider selling and reinvesting your long-term investments when they reach approximately the half-way point to maturity.

A barbell strategy, it uses both ends of the intensity spectrum—with almost nothing in between. 

We should be able to apply this strategy for long-term and short-term stock investing and trading strategy. One end for long-term investing to collect cash flow and the other end for short-term quick capital gain when market presents trading opportunity. In between, we do nothing else but just wait patiently for each end to happen.

Four types of stock investors

Just For Laugh ....

There are four types of stock investors in the market.

1. Lazy, impatient, and non-savvy

The stock market loves them as they are ones who consistently donate part of their earned income from their jobs to the other savvy players in the stock market.

2. Hardworking, patient, and savvy

They are hardworking, patient, and savvy. They will analyse their companies upside down and inside out and paying attention to the finest details before committing their money to the stocks. They are value investors.

3. Hardworking, impatient, and savvy

They are hardworking, savvy; but impatient. Should we call them speculators?

4. Lazy, patient, and savvy

They are too lazy to analyse their companies upside down and inside out like value investors. They are the market hunters and fishermen. No meh???

The moral of story

There is only one way to lose your money but many ways to make money from the stock market.

Euro Zone Leaders Agree to Lend Spain Up to $125 Billion

By: Reuters

Euro zone finance ministers agreed on Saturday to lend Spain up to 100 billion euros ($125 billion) to shore up its teetering banks and Madrid said it would specify precisely how much it needs once independent audits report in just over a week.

Steve Allen | Brand X Pictures | Getty Images

After a 2 1/2 hour conference call of the 17 European finance ministers, which several sources described as heated, the Eurogroup and Madrid said the amount of the bailout would be sufficiently large to banish any doubts.

"The loan amount must cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion euros in total," a Eurogroup statement said.

Spain said it wanted aid for its banks, but would not specify the precise amount until two independent consultancies — Oliver Wyman and Roland Berger — deliver their assessment of the banking sector's capital needs some time before June 21.

"The Spanish government declares its intention to request European financing for the recapitalization of the Spanish banks that need it," Economy Minister Luis de Guindos told a news conference in Madrid.

He said the amounts needed would be manageable, and that the funds requested would amply cover any needs.

A bailout for Spain's banks, beset by bad debts since a property bubble burst, would make it the fourth country to seek assistance since Europe's debt crisis began. With the rescue of Greece, Ireland, Portugal and now Spain , the European Union and International Monetary Fund have now committed around 500 billion euros to finance European bailouts.

The Group of Seven developed nations welcomed the plan, saying it marked an important step toward more fiscal integration in the region.

"G7 ministers welcome Spain's plan to recapitalize its banking system and the Eurogroup's announcement of support for Spain's financial restructuring authority," the G7 said in a statement released by the U.S. Treasury.

"These steps represent important progress as the euro area moves forward on greater financial and fiscal union to reinforce monetary union," the statement said. The G7 comprises the United States, Canada, Britain, Italy, France, Germany and Japan.The head of the IMF said the global lender stood ready to help monitor the assistance the euro zone intends to provide to Spain's banks, and said the size of the planned aid appeared ample.

"The IMF stands ready, at the invitation of the Eurogroup members, to support the implementation and monitoring of this financial assistance through regular reporting," IMF Managing Director Christine Lagarde said in a statement.

She said the euro zone's plan to provide up to 100 billion euros was consistent with the IMF's estimate of the capital needs of Spain's banks and should provide "assurance that the financing needs of Spain's banking system will be fully met."

U.S. Treasury Secretary Timothy Geithner welcomed the euro zone's action, calling it an important step toward financial union.

"We welcome Spain's action to recapitalize its banking system and the commitment by its European partners to provide support," Geithner said in a statement. "These are important for the health of Spain's economy and as concrete steps on the path to financial union, which is vital to the resilience of the euro area."

Heated Debate

Officials said there had been a heated debate over the IMF's role in Spain's bank rescue, which Madrid wanted kept to a minimum. It will not provide any of the money.

In the end it was agreed that the IMF would help monitor reforms in Spain's banking sector, while EU institutions would ensure Spain stuck to its broader economic commitments.

"We invite the IMF to support the implementation and monitoring of the financial assistance with regular reporting," the Eurogroup statement said.

Sources involved in the talks said there had also been pressure applied on Madrid to make a precise request right away, but Spain had resisted.

Euro zone policymakers are eager to shore up Spain's position before June 17 elections in Greece which could push Athens closer to a euro zone exit and unleash a wave of contagion. Spain's auditors could report back after that date.

Nonetheless, analysts said financial markets may be calmed by the announcement when they reopen on Monday.

"The figure of up to 100 billion is more encouraging and pretty realistic; it's an attempt to cap the problem," said Edmund Shing, European head of equity strategy at Barclays. "The issue, however, is there is still a lack of detail about where the money's coming from, which is crucial. The market will treat it with some caution until they see how it will be funded."

The Eurogroup said the funds could come from either from the euro zone's temporary rescue fund, the European Financial Stability Facility (EFSF) , or the permanent mechanism, the European Stability Mechanism, which is due to start next month. Finland said that if money came from the EFSF, it would want collateral.

EU sources said there was a preference to channel money to Spain through the ESM, rather than the EFSF. Under the ESM, an approval rate of 90 percent or less is needed to trigger aid, and the fund also has more flexibility in how it operates.

"That's why it's so important that the ESM ... be ratified quickly," German Finance Minister Wolfgang Schaeuble said.

The Spanish government has already spent 15 billion euros bailing out small regional savings banks that lent recklessly to property developers.

Spain's biggest failed bank, Bankia, will cost 23.5 billion euros to rescue and its shareholders have been wiped out.

"Whatever the formula being used, we need to say two things: first the innocent should not suffer for the guilty, second public money should come back to public coffers," said Socialist opposition chief Alfredo Perez Rubalcaba after speaking with Prime Minister Mariano Rajoy on Saturday morning.

EU Rescue Funds

The race to resolve the banks' troubles comes after Fitch Ratings cut Madrid's sovereign credit rating by three notches to triple-B, highlighting the Spanish banking sector's exposure to bad property loans and to contagion from Greece's debt crisis.

It said the cost to the Spanish state of recapitalizing banks stricken by the bursting of a real estate bubble, recession and mass unemployment could be between 60 billion to 100 billion euros ($75 billion to $125 billion). The higher figure would be in a stress scenario equivalent to Ireland's bank crash.

Italy could yet get dragged in too. Its industry minister, Corrado Passera, said the economic situation in Italy had improved since the end of 2011, but remained critical.

"Europe was more disappointing than we had expected, it was less capable of tackling a relatively minor problem such as Greece," Passera told a conference.

If a request is made, Spain is expected to ask for help from the 440 billion euros EFSF.

The process is likely to involve bonds from the EFSF being injected into Spanish banks with no new capital raised, a euro zone official said on Friday. The bonds can then be used as collateral, allowing the banks to access European Central Bank liquidity.

While Spain would join Greece, Ireland, and Portugal in receiving a European financial rescue, officials said the aid would be focused only on its banking sector, without taking the Spanish state out of credit markets.

That would be crucial to avoid overstraining the euro zone's rescue funds, which would struggle to cover Spanish government borrowing needs for the next three years plus possible additional assistance for Portugal and Ireland.

Conditions in the plan would be related to the banks and would probably not add to the austerity measures and structural economic reforms which Rajoy's government has already put in place, EU and German sources said.

A "bailout lite" would help salve Spanish pride. Spain is the world's 12th largest economy and No. 4 in the euro zone. EU and German officials have cited national pride as a barrier to requesting a full assistance program.

The European Commission and Germany both agreed in principle last week that Spain should be given an extra year to bring its budget deficit down below the EU limit of 3 percent of gross domestic product because of a deep recession.

Inflation: View it from your future and NOT at the present!

Read? The Magic of Compounding???

My kopi-O: Past, present and future.

The truth about it!!!!






When I first started work at Robinson Rd after NS, I had my morning and afternoon kopi-O at Ya Kun coffee stall at Lao Pa Sat. It only costed $0.30 .

Today, if we want to drink the same old Ya Kun brand kopi-O, it will cost us $1.40???

How come???

Firstly, it is Inflation!!!! and

secondly, the standard of living has definitely changed, you can't find Ya Kun coffee stall any more.

Now you may understand why we must care so much about our investing performance and investment goals???

Get it?

This Summer an 'Eerie Echo' of Pre-Lehman: Zoellick

The summer of 2012 is looking like an “eerie” echo of 2008 but euro zone sovereign debt has replaced mortgages as the risky asset class that markets are anxious about, said Robert Zoellick, President of the World Bank.

JHSB | ChinaFotoPress | Getty Images World Bank President Robert Zoellick

Banks are under stress and depositors have begun to “jog,” Zoellick wrote in an editorial in the Financial Times on Thursday.   

“The European Central Bank, like the U.S. Federal Reserve in 2008, has sought to reassure markets by providing generous liquidity, but collateral quality is declining as the better pickings on bank balance sheets are used up,” he added.

To prevent investors from fleeing in panic, Europe must be ready with more than liquidity injections to contain the consequences of a possible Greek exit. “If Greece leaves the eurozone, the contagion is impossible to predict, just as Lehman (Brothers’ collapse) had unexpected consequences,” Zoellick said.

What is needed is a so-called “euro-sovereign” guarantee of bank deposits and other liabilities, as the guarantees of some national sovereigns are unlikely to be sufficient.

In the editorial, Zoellick argues Europe needs to deploy euro zone bonds, recapitalize banks by using funds from the European Stability Mechanism (ESM) and provide medium-term funding assurance to countries such as Spain.

The creation of euro zone bonds has been a controversial subject with France’s new President Francois Hollande calling for the currency bloc to issue common bonds and Germany rejecting such a move on the grounds it will weaken fiscal discipline.

But Zoellick argues time is running out and euro zone leaders “may be nearing a 'break the glass' moment: when one smashes the pane protecting the emergency fire alarm.”

If a crisis does occur, the European Central Bank may not have the ability to “respond fast, fully, and forcefully” because of differences on the bank’s board, Zoellick said.

“A Greek exit would trigger a hit to confidence in other sovereign euro assets. Euro zone leaders need to be ready. There will not be time for meetings of finance ministers to discuss the outlook and debate the politics of incrementalism. In panicked markets, investors flee to safe assets, sparking other flames.”

By CNBC's Jean Chua.

Kep Corp

OLAM INTERNATIONAL LIMITED LAUNCHES A SHARE BUYBACK PROGRAMME

Olam International Limited ("Olam" or the "Company") has today commenced a share buyback programme (the "Share Buyback Programme") pursuant to its share buyback mandate (the "Share Buyback Mandate") renewed at the Annual General Meeting of the Company on 28 October 2011. Under the Share Buyback Mandate for market purchases, Olam may purchase up to 10.0% of its total number of issued shares (excluding treasury shares) (the "Shares"), or up to 244,230,986 Shares, at a maximum price of 105% of the average closing price of the last 5 market days at the time of acquisition. All Shares purchased under the Share Buyback Programme may be held as treasury shares or cancelled, as the Company may decide from time to time.

What the Bible Can Teach You About Investing Today

Ron Blue has an investment philosophy you don't hear very often these days. Specifically, the Founder and Managing Director of Kingdom Advisors says the old proverbs found in the Bible hold the keys to today's investment success.

Blue began reading and studying the bible only after becoming well-versed in the tenants of financial reporting as a Certified Public Accountant. What surprised him was the degree to which doing either effectively came down to the same basic rules. Blue recently came on Breakout to share some of these proverbs and how their meanings apply to investors of any faith.

1) Establish Written Financial Goals

"The plans of the diligent lead to profit as surely as haste leads to poverty." -Proverbs 21:5

Write down your end target then determine your steps towards getting there. A little bit at a time, all of the time, is a wiser plan than taken frantic all-or-nothing shots.

Read? Dreaming of financial independence by 55!

Read? Q1 2012 Investment Performance Report


2) Save and Invest Before You Spend

"Put your outdoor work in order and get your fields ready; after that, build your house." -Proverbs 24:27

As Blue puts it, "don't spend in the short-term because you won't have it in the long-term."

Read? The Magic of Compounding???

3) Keep a Long Term Perspective

"Suppose one of you wants to build a tower. Won't you first sit down and estimate the cost to see if you have enough money to complete it?" -Luke 14:28

In other words, know what you need to set aside to reach your savings goals. Your time frame is going to vary depending what your personal goals. Saving for college may be a 15-year strategy while retirement planning could involve more than 40 years. The runs are different depending on the size of your intended tower.

Read? Visually guided long-term investing goals! (2)


4) Diversify Your Portfolio

"Divide your portion to seven, or even eight, for you do not know what misfortune may occur on the earth." -Ecclesiastes 11:2

Even when Ecclesiastes was written 2,500 years ago people needed to have diversification. Blue suggests not just a range of stocks but assets: some venture capital, stocks, bonds and real estate for example, though readers needs may vary. The goal isn't eliminating failures but anticipating them by having an assortment of investments.

Read? Portfolio Management - Diversification Is Your Friend - Part 3

5) Do Not Take on More Risk Than You Can Afford

"I have seen a grievous evil under the sun; wealth hoarded to the harm of its owners." -Ecclesiastes 5:13

If something sounds too good to be true, it probably is. Nobody knows where the stock market is going to go, says Blue. There is no free lunch. As Blue puts it, "You can't be guaranteed of returns, and if you're trying to get that you're probably taking more risk than you should."

Read? Understanding Stock Market Risks - No 7 Risk

Read? Thinking of Risks before Profit


Do you believe the Bible can help your investing success?

Crisis-hit Spain lures bond buyers but at high cost

MADRID: Spain paid sharply higher borrowing costs to lure buyers for its bonds Thursday as the crisis-torn banking sector tottered towards a bailout.

The treasury raised 2.074 billion euros (US$2.6 billion) in the auction of two-, four- and 10-year bonds, comfortably beating its own target range of 1.0-2.0 billion euros, Bank of Spain figures showed.

The sale attracted healthy demand.

But the state had to pay a high price, with the 10-year bonds fetching more than 6.0 per cent -- a rate widely regarded as unsustainable over the longer term.

Investors fret over the huge, as-yet unknown sums required to rescue Spain's weakened banks, weighed down by a vast exposure to the property sector, which collapsed in 2008.

Stricken lender Bankia, recently nationalised to save it from collapse, has asked for a total of 23.465 billion euros in capital from the state, of which 19 billion euros have yet to be found.

Three other banks could need another 30 billion euros, according to some Spanish reports.

An IMF report on Spanish banks to be released on Monday will price their capital needs at 40-80 billion euros, Spanish newspaper ABC said Thursday, citing a draft of the document.

The Spanish authorities have given themselves two weeks to take a decision on how to recapitalise weakened banks.

In addition to the IMF report, officials are waiting for assessments by two private consulting firms, Roland Berger and Oliver Wyman, on the state of the banks' balance sheets.

Markets have eased the pressure on Spain, however, as expectations mount that Europe will step in to save the banks.

Spain, the eurozone's fourth largest economy, is fighting tooth and nail to avoid an all-out bailout in the style of Portugal, Ireland or Greece and is seeking instead aid directed only at the banks.

Madrid is pushing for European rescue funds to be authorised to intervene directly in the region's banks without the need for a broad rescue that would come with attached austerity conditions.

It is unclear if the European authorities would make such a concession, however.

"What is sure is that things are moving: it seems Spain will manage to obtain a tailor-made rescue for its problematic banking sector," said a report by Bankinter analysts.

A breakdown of the latest Spanish bond sale showed the rate on benchmark 10-year bonds climbed to an average 6.044 per cent from 5.743 per cent in the previous comparable auction April 19.

But that was still short of the euro era record of 6.975 per cent struck on November 17, 2011.
For two-year bonds the rate shot to 4.335 per cent from 3.463 per cent at the previous comparable auction on April 19 and for the four-year bonds it surged to 5.353 per cent from 4.319 on May 17.

"Although the debt auction was positively received by the market, it highlights how bad things have got in Spain," said a report by British-based analysts with online brokerage Forex.com.

Spain was now almost wholly reliant on banks, and the European Central Bank which funds them, to buy its debt, they said.

"International investors are staying away from Spanish debt, so the 'success' of this auction does not mean that the sovereign problems are any less severe," the report said.

"This is important to remember as the sovereign strains could still erupt at any time and rattle the recent stabilisation we have seen in the markets," it cautioned.

- AFP/ir

The Magic of Compounding???

Read? Saving, Lending and Investing (5)

Read? Compound Interest is not the same as Compound Returns (4)

Read? Saving matters but Investing determines - Part 3

"Compound interest is the eighth natural wonder of the world and the most powerful thing I have ever encountered." ~ Albert Einstein Quotes

The Magic of Compounding really works for who???

The magic of compounding works well for lenders for secured lending financial products e.g. home loans and extremely well for threatening secured lending like Ah Longs.

Does this magic of compounding still work for good savers but poor investors?

Who is sitting at the other end of the compounding see-saw?

Big brother - INFLATION!!!!

Is inflation rate getting heavier or lighter for years to come???

We have little choice but invest more time and effort in getting ourselves heavier with investing knowledge and skills! Investing is not rocket science!!! We can all do it well if we are serious into it and willing to invest time and effort to fatten ourselves with investing fat and muscles.

Sembcorp Signs Joint Venture Agreement For Industrial Wastewater Treatment In China’s Jiangsu Province

- Project gives Sembcorp exclusivity as provider of industrial wastewater treatment within an industrial park
- Anchor customer secured under a 15-year contract
Sembcorp Industries (Sembcorp) is pleased to announce that its wholly-owned subsidiary, Sembcorp (China) Holding Co, has entered into a joint venture agreement with Chinese partner, Jiangsu Province Lvsi Coastal Economic Zone Development & Construction Co (Lvsi D&C) to build, own and operate an industrial wastewater treatment plant in the Qidong Lvsi Port Economic Development Zone (Qidong Lvsi EDZ) in Jiangsu province.

Under the agreement, Sembcorp (China) Holding and Lvsi D&C will incorporate a joint venture company in China with a combined investment of RMB80 million (approximately S$16 million). Sembcorp will own a 95% stake in the joint venture company while Lvsi D&C, which is wholly-owned by the Qidong Lvsi EDZ Administration Committee, will hold the remaining 5%.

The industrial wastewater treatment plant will have a design capacity of 10,000 cubic metres per day and will be capable of treating multiple streams of high concentration industrial wastewater with chemical oxygen demand (COD) of up to 1,000 milligrammes per litre. After the start-up, the plant is expected to have an initial capacity of 5,800 cubic metres per day. The facility is located in the Petrochemical & New Materials Industrial Park, a 12-square kilometre park within the Qidong Lvsi EDZ, which is a new petrochemical industrial zone in Jiangsu province.

Expected to be completed by end 2013, the plant will provide industrial wastewater treatment services to its anchor customer, China National Chemical Engineering Group (CNCEG), under a 15-year contract which Sembcorp has secured. CNCEG is a state-owned enterprise listed on the Shanghai Stock Exchange.
This project gives Sembcorp exclusivity as the provider of industrial wastewater treatment within the Petrochemical & New Materials Industrial Park. This new facility will complement the Group’s existing water operations in Jiangsu province, where Sembcorp will now have a presence in four locations, including Zhangjiagang, Nanjing and Yancheng.

Mr Tang Kin Fei, Group President & CEO of Sembcorp, said, “We are excited to embark on this new project in Qidong, to offer our expertise in complex industrial wastewater treatment to customers in the Petrochemical & New Materials Industrial Park and to support the growth of the industrial park. We are pleased to have secured China National Chemical Engineering Group as our anchor customer and look forward to serving them and other new customers setting up operations in the industrial park.
“We are truly honoured to be chosen by the Qidong Lvsi EDZ Administration Committee to partner them in this project. We look forward to working closely with them and the local government to deliver the project successfully.”

The signing ceremony took place earlier today in the presence of Singapore Consul-General in Shanghai Mr Ong Siew Gay, government officials from Nantong city and Qidong city as well as delegates from International Enterprise Singapore. The agreement was signed by Mr Alan Yau, Chief Executive Officer of Sembcorp (China) Holding (廖伟豪, 胜科中国区首席执行官) and Mr Hua Wei, Chairman of Lvsi D&C (华伟, 吕四海洋经济开发区开发建设有限公司董事长).

With this facility, Sembcorp has an established presence in water and wastewater treatment in 13 cities across nine provinces in China, serving both industrial and municipal customers.

The above transactions are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.

SWIBER CLINCHES A SERIES OF SIGNIFICANT AWARDS IN ASIA PACIFIC AND THE MIDDLE EAST TOTALING TO OVER US$830 MILLION

1. Total award of US$830 million for offshore construction projects and vessel chartering services, inclusive of optional items, in Asia Pacific and the Middle East (through JV partner)
2. Strong orderbook visibility signaling strong momentum in the offshore oil and gas industry

announced that it has clinched a series of significant awards totaling to over US$830 million. These awards include offshore construction projects and vessel chartering services in the Asia Pacific region. In addition, it has received a letter of award (“LOA”) through its JV Company to charter out a spread of support vessels in the Middle East.

Swiber’s contract wins in the Asia Pacific region include projects for engineering, procurement, and installation of pipelines, umbilicals, and subsea systems; and transportation and installation of wellhead structures and associated pipelines. In addition, the Group will provide vessel

chartering services in the region. Work for these projects will commence immediately this year and will carry on into 2014.

Global offshore oil and gas sectors continue to boom

SINGAPORE: The global shipping industry has been in the doldrums but industry players say the offshore oil and gas sectors remain resilient despite the global economic headwinds.

Ratings agency Moody's recently rated its outlook for the shipping industry for 2012 as negative.

Problems in the Eurozone have also added to greater uncertainty on the demand side, affecting the profitability of listed players.

FSL's president and CEO, Philip Clausius, said: "We're still suffering from significant oversupply of ships. And more recently, that has been met with greater uncertainty on the demand side given the problems we're going through in Europe. The shipping crisis has unfortunately proven to be very stubborn and we are still in it in a certain sense. As such, the stock price or the unit price has suffered."

But it's a different story for the global offshore oil and gas sector, which doesn't suffer from the issue of overcapacity.

This is a plus point that has prompted banks to increase lending to this market.

DNB's regional director and head of Asia, Erik Borgen, said: "Well, it has definitely gone up quite a bit. There has been more projects coming on and the need for capital expenditure in those industries has been tremendous. Our bank has been more involved in both offshore transactions as well as L&G transactions in various parts of the world."

Offshore drill rig companies are also shoring up more long-term contracts.

Manav Kumar, director at Vision Drilling, said: "Vision Drilling is constructing one jack up rig at Keppel shipyard in Singapore and we have secured a five year charter for that rig with ONGC, the national oil and gas company of India. The business is good.

"We see good demand globally on drilling rig and services. The simple fact is that the oil companies are willing to order or give long term contracts for the next five to 10 years and in some cases 15 years, given by Petrobras, is very encouraging."

Despite the prolonged challenges confronting the global shipping industry, the offshore oil and gas sectors are still booming, and experts say Asia will be the driving force of growth for this particular market as energy demand in Asia is projected to grow more than 50 per cent over the next three decades.

- CNA/fa

RPT-STOCKS NEWS SINGAPORE-Neptune, Keppel rank high among down beta stocks

Neptune Orient Lines Ltd and Keppel Corp Ltd are the most correlated stocks among the index constituents during market declines, Thomson Reuters data shows.

The down beta based on weekly price movements of the Straits Times Index and index stocks over the last three years, shows Neptune and Keppel have a down beta score of 1.80 and 1.54 respectively.

This suggests these stocks tend to fall more versus other index constituents during market slumps.

Down beta is the volatility of a stock relative to the local index when the index declines.

Singapore Technologies Engineering Ltd and Starhub Ltd have the lowest down beta score of 0.30 and 0.45 respectively, suggesting the stocks are more resilient during a decline in the index.

Table of Top 5 weekly down beta and bottom 5 weekly down betas over the past three years.

Top 5 down beta Down beta Bottom 5 down beta Down beta Neptune 1.8 ST Engineering 0.3 Keppel 1.54 Starhub 0.45 Noble 1.41 SIA Engineering 0.51 Sembcorp Marine 1.39 Singapore Press 0.53 Global Logistic* 1.37 Comfortdelgro 0.64 *Global Logistic listed in the market in 2010.

Australian shareholders OK Gloucester-Yancoal deal

Shareholders on Monday voted in favour of Gloucester Coal's tie-up with China's Yancoal, paving the way for what is expected to be Australia's largest listed coal firm.

The approval comes after the Australian government's foreign investments watchdog gave the go=ahead to the deal in March and after the merger met Hong Kong Stock Exchange regulations. It still requires Chinese regulatory approval.

"Gloucester shareholders have voted overwhelmingly in favour of the scheme of arrangement for the proposed merger of Gloucester and Yancoal Australia Limited," the company said in a statement.

The deal approved by 99.98 percent of votes cast will see the creation of a newly-merged coal titan, with resources of some 3.4 billion tonnes and valued by local media at $8-$9 billion.

Yancoal, the Australian subsidiary of China's Yanzhou Coal, has described the new firm as the "leading listed pure-play coal company in Australia and the ninth-largest globally based on reserves."

The merger, yet to be approved by the Victorian Supreme Court, gives energy-hungry China a greater foothold in Australia's lucrative coal market and comes amid consolidation in the sector.

If approved by the court on Friday, Gloucester's shareholders are set to receive Aus$3.15 cash and a share in the new entity for each of their shares.

Yanzhou, Yancoal's parent company, will initially hold 78 percent of the new firm, Singapore's commodities giant Noble 13 percent and Gloucester's remaining shareholders nine percent.

SMOE’S INDONESIAN SUBSIDIARY SECURES CONTRACT WORTH ABOUT US$63 MILLION FOR ENGINEERING AND CONSTRUCTION OF TWO WELLHEAD PLATFORMS

SMOE Pte Ltd, a wholly-owned subsidiary of Sembcorp Marine, wishes to announce that its Indonesian subsidiary, PT SMOE Indonesia, in consortium with PT Rajawali Swiber Cakrawala, has secured a
contract worth about US$175 million from Premier Oil Natuna Sea B.V. for the engineering and construction of 2 Wellhead Platforms, 2 infield sub-sea pipelines and modification works on an existing facility for the Naga and Pelikan Project, offshore Indonesia.

The platform topside and jacket each weighs approximately 480 and 900 metric tonnes respectively. The sub-sea pipelines of 14 inch diameter by 19 km and 12 inch diameter by 32 km are tied to the existing Central Processing Platform.

PT SMOE Indonesia’s scope of work, worth about US$63 million, entails engineering design, procurement, construction, offshore hook-up and commissioning of the 2 platforms and modification work on the existing Central Processing Platform, while PT Rajawali Swiber Cakrawala is responsible for the engineering and laying of the 2 sub-sea pipelines as well as the transportation and installation of the 2 platforms in water depth of 82 metres.

Construction work on the platforms is expected to commence in July 2012 with
offshore completion by September 2013.

Mr Norman Chew, President Director of PT SMOE Indonesia said “Both PT SMOE and PT Rajawali Swiber Cakrawala recognise each other’s strength and we are glad to have joined forces to secure this contract. This is the secondcontract award that PT SMOE Indonesia has secured from Premier Oil Natuna Sea B.V.”

Who influence you into investing? (3)

Read? Who influence you into investing? (2)

My friend was telling me so-and-so bloggers and so-and-so Higher Immortals have made so much money in their weekly or monthly summary reports claiming their achievement.

My advice to reading these cyber posts by bloggers or High Immortals. Summary results can be nicely trimmed for intended presentation. We have to learn to be wiser and don't trust the number easily as there is no way for us to back track their actual transactions and add the number up.

Few bloggers will dare to post per transaction near real-time.

Scare of losing face when losing har???

Actually there is nothing to hide as LOSING is always part of the Game!!!

SWIBER SECURES AN AWARD WORTH APPROXIMATELY US$175 MILLION

- Contract win from Indonesia indicates region’s booming offshore oil and gas sector
- Successful bid made jointly with consortium partner, PT SMOE Indonesia

Singapore – June 4, 2012 – Swiber Holdings Limited (“Swiber” or together with its subsidiaries, the “Group”), a world class integrated construction and support services provider to the offshore industry, through its Indonesian joint venture company, PT Rajawali Swiber Cakrawala, has been awarded a contract amounting to approximately US$175 million by an oil major for offshore engineering, procurement, construction and installation (“EPCI”) works in Indonesia, following a successful bid made jointly with consortium partner, PT SMOE Indonesia.

This latest contract win entails offshore EPCI works for platforms, pipelines, and existing facilities in Indonesia. The execution of this project will commence immediately this year and is expected to be completed in 2014.

Kep Corp, Semb Corp, Semb Marine

Read? Is your stock a tennis ball or an egg?

Are these stocks tennis balls?

Who influence you into investing? (2)

Read? Who influence you into investing?

In investing, it is like 8 Immortals crossing the river .....

Once, after all 8 Immortals have crossed the river they looked so powerful with their methods and strategies. Soon, they will have devotees following them and hoping to gain their magical powers if they worship them long enough.

Who should we learn and follow?

When you go around reading more and more investment, trading and financial blogs, you may trip yourself into confusion and somehow realise one Immortal's magic seems more powerful than the earlier Immortal whom you have been following so closely.  At the same time, you are hearing some Higher Immortals said that you have to burn $3,000 to get their blessing to impart that little magic of theirs to you.

So how, devotees?

Am I going to lose it back to the Bear again???

Market cycles are part of long-term investors investment life cycle.

Will this Bear market be different?

Becoming A Millionaire? (2)

 Just For Thinking ....

Read? Becoming A Millionaire?

17% of Singapore households are millionaires

Money invest Sat, Jun 2, 2012 ST

A new study has found that number of households with invest-able assets  of US$1 million (S$1.26) or more rose 14% to 188,000 last year. That means 17.1% of households - or one in six - are millionaires.

Createwealth8888:

One in six are millionaires!!! 

Probably we are not even aware that we are sitting next to ordinary looking family who are millionaires at our favorite makan places.

How to become richer?

Climb corporate ladder

 

Grow investment money tree

Does attending investment course really help?

Read? Does attending investment course really help?

Last night, I have dinner with two friends who have attended investment and trading courses. One friend realized it is better to be a trainer then to be a trader. It is always the fault of the trainee themselves when they cannot make it in their investment or trading method and strategies.

Noble, Olam and Wilmar

 Olam and Wilamr still looking really bad!!!

Ambulances: The difference between life and death?

SINGAPORE: A study here has found that patients who encounter acute heart attacks are not calling for ambulances, resulting in a delay in receiving medical help.

The study, the findings of which were published in the Internal Medicine Journal last year, surveyed 252 heart attack patients at the National University Hospital (NUH).

The study found that only 35 per cent of these patients used emergency medical services when presented with symptoms of a heart attack.

Some 98 patients took their own transport to the hospital, while another 22 per cent sought assistance from their general practitioner (GP) first.

For those who did not call for an ambulance, the period between the onset of symptoms and receiving medical help was prolonged by an average of 82 minutes, according to the study.

National University Heart Centre registrar Tan Li Ling, who led the study, said: "There is a need to educate the public on the symptoms of a heart attack as patients might not use the emergency medical service when they do not recognise the symptoms."

She added that greater awareness of the benefits of using an ambulance was needed. For instance, in the case of a life-threatening heart attack, paramedics and equipment like defibrillators are on hand to provide prompt treatment on the spot, she said.

GPs TODAY spoke to said educating patients could be challenging. For one, heart attack symptoms may not be easily recognisable. Dr Kevin Chua of Drs Chua & Partners said: "The symptoms of a heart attack vary and it is not clear cut. Hence, patients might turn to their GP if they see the symptoms as something mild."

He encounters patients suffering heart attacks once every few months and refers them to the hospital after assessing their condition.

The researchers said the tendency to brush off symptoms could be cultural, as the findings are in line with overseas studies which have found that Asian patients were more likely to not call for emergency medical help. This may also be the case when it comes to older patients, they added.

The researchers noted some patients may assume they could reach the hospital faster in their own cars.

However, the study would have to be expanded to be more representative as it involved a relatively healthy group of participants with a low mortality rate and this was not an accurate reflection of NUH's heart attack patients, they said. - TODAY

Keppel secures third harsh environment jackup order from Maersk for about US$560 million

Singapore, 1 June 2012 - Keppel FELS Limited (Keppel FELS) has been awarded a contract from Maersk Drilling Holdings Singapore Pte Ltd, a wholly owned subsidiary of A.P. Moller – Maersk A/S, to build a repeat Gusto MSC CJ70 ultra harsh environment jackup rig worth about US$560 million.

Scheduled for delivery in 1Q 2015, the rig will be deployed in Dagny field in the Norwegian North Sea for Statoil when completed.

This is the third CJ70 jackup rig that Keppel FELS is building for Maersk Drilling, following an order for two such rigs in February 2011. As part of this repeat order, Maersk Drilling will have an option to build an additional jackup rig of the same design with Keppel FELS.

Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, said, "Our congratulations to Maersk for winning the confidence of Statoil. We are pleased to be given this opportunity to partner Maersk Drilling in their project for Statoil. Having developed a long-term partnership with Maersk Drilling, we have a keen understanding of their requirements, enabling us to support them in growing their rig fleet.

"We thank Maersk Drilling for entrusting us with their third harsh environment jackup. This repeat order is a testament to our ability to deliver high quality rigs on time, safely and within budget. I am confident that, like our previous rigs for Maersk Drilling, the three CJ70 rigs will be a success when they are deployed."

Mr Claus V. Hemmingsen, CEO of Maersk Drilling and Member of the Executive Board of the A. P. Moller – Maersk Group added, "Maersk Drilling already operates six ultra harsh environment jackup rigs in Norway, and the addition of three more high specification units will further solidify our stronghold in this attractive market. We have chosen to work with Keppel FELS as they have proven to be a professional partner and supplier of state-of-the-art drilling units, helping us to meet the needs of our customers."

The CJ70 rigs are designed for operation in the harsh environment of the North Sea, at water depths of up to 150 metres. The high capacity features include offline pipe handling and simultaneous operations as well as an enlarged cantilever reach, which
will significantly increase the drilling efficiency compared to conventional units. The enhanced design also includes multi-machine control on the drill floor that adds a degree of automation to ensure a safe operation and consistent performance. A total of 150 people can be accommodated on board in single cabins.

Is your stock a tennis ball or an egg?

 Just For Laugh ...

Cabot has the engaging habit of philosophizing about the patterns it sees in stock performances. It writes:

“The key to finding winners is to look for stocks that bounce back quickly; we call those tennis balls, as they spring back to life after hitting the floor. Conversely, it’s usually best to avoid the names that can’t get off their knees even after the market lifts its head, as their inability to bounce resembles eggs that have splattered on the floor.”

Spanish bond risk premium widens to record

PARIS - The risk premium which Spain must pay to borrow compared with benchmark German borrowing rates rose to a record 5.156 percentage points in mid-day trading on Tuesday on tension over Spanish banks.

The interest rate which Spain must pay to borrow for 10 years, as indicated by trading in bonds on the secondary market, was nearly 6.5 per cent. But the German 10-year rate, the lowest in the eurozone, fell to a record low point. -- AFP

Is 2012 Bear 2.0 coming??? (2)

Read? Is 2012 Bear 2.0 coming???

"The general who wins a battle makes many calculations in his temple before the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations lead to victory, and few calculations to defeat; how much more no calculation at all! It is by attention to this point that I can foresee who is likely to win or lose."  - Sun Tze

The general doesn't fight the last war!!!

In the stock market, it is either win or lose.

What if Uncle8888 is wrong and the Bull came?

What's wrong in putting the 4th Smiling Green Face up there?

Anyone think it is wrong????

What if Uncle8888 is right and the Bear came?

Olam International invests US$240m in Brazil sugar mill

By Carine Lee

Olam International Limited on Tuesday said it is investing US$240 million in its first sugar milling asset in Brazil.

"Olam's strategic plan for the sugar business is to build a configuration of milling assets in large sugar producing countries that have a comparative cost advantage, and invest in refining assets in large deficit-prone, consuming countries with regulated, structurally inefficient markets that offer the potential to extract high economic rents," the company said.

It is acquiring Usina Acucareira Passos SA (UAP) for 255 million Brazilian Real (US$128.8 million) and investing an additional capital expenditure of US$111.5 million over the next five years to improve its agricultural and industrial capacity and efficiency.

UAP owns and operates a sugar mill located in Passos within the state of Minas Gerais in Brazil's Centre South, with a cane crushing capacity of 1.75 million metric tonnes per annum with an output capacity of up to 200,000 metric tonnes of sugar per year.

BIOSENSORS REPORTS CONTINUED STRONG SALES AND RECORD PROFITS IN THE FOURTH QUARTER OF FISCAL YEAR 2012

Q4 FY12 Highlights:

• Robust total revenue of US$88.2 million, representing 98% year-on-year growth
• Terumo Corporation (“Terumo”), Biosensors’ licensing partner, continued strong momentum in the sales of its Nobori drug-eluting stent (“DES”), resulting in a 378% year-on-year increase in Biosensors’ licensing and royalties revenue to US$22.8 million
• Net profit excluding exceptional items increased 72% year-on-year to US$28.6 million
• Generated operating cash flow of US$32.4 million in Q4 FY12, a 143% increase from a year ago

FY12 Full Year Highlights:

• Total revenue of US$292.1 million, an 87% growth, exceeding the Company’s financial guidance of 70% – 80% year-on-year growth
• Terumo’s strong revenue growth for its Nobori DES contributed to a 370% year-on-year increase in Biosensors’ total licensing revenue to US$80.8 million in FY12
•  FY12 net profit excluding exceptional items increased 92% year-on-year to US$101 million
• Generated operating cash flow of US$81.0 million in FY12, a 192% increase from a year ago
• Successfully consolidated JW Medical Systems Ltd. (“JWMS”) in early October 2011 and included its half-year financial results

Sembcorp's JV completes US$1b acceptance tests for Oman plant

By Carine Lee

Sembcorp Industries on Monday said its joint venture company, Sembcorp Salalah Power and Water Company, has successfully completed the acceptance tests for its US$1 billion Salalah Independent Water and Power Plant (Salalah IWPP) in Oman.

The Salalah IWPP consists of a gas-fired power plant with a total gross capacity of 490 megawatts and a seawater desalination plant with a total water production capacity of 15 million imperial gallons (69,000 cubic metres) per day.

It is the largest and most energy-efficient power and water plant in Dhofar in southern Oman, and is expected to play a major role in meeting the growing power and water demand of this region.

The facility will provide power and water under a 15-year power and water purchase agreement with the Oman Power and Water Procurement Company, which is wholly-owned by the Government of Oman.

Baby and Adult Pamper???

Just For Laugh ....

What is the difference between baby and adult pamper?

Baby pamper

When your baby wears a baby pamper, both parents and baby also happy. It keeps the baby dry and made the life of parents easier.

Adult pamper

Try making a dementia adult wearing an adult pamper. Guess what frequently can happen?


It becomes disposable pamper!!! It is totally different from a baby wearing pamper.

Why???

Is 2012 Bear 2.0 coming???

 Just For Thinking ...


” If you have a worry problem, do these three things: 1. Ask yourself: “What is the worst that can possibly happen?” 2. Prepare to accept it if you have to. 3. Then calmly proceed to improve on the worst.” (Carnegie 49)

When we step into the first week of Jun2012, we may be able to know from the marketing agents whether 2012 Bear 2.0 is ready for worldwide distribution.

Good advice from Dale Carnegie. Ask these three questions and stop worrying.
 
Q1: Ask yourself: “What is the worst that can possibly happen?”

What will happen to my portfolio if I get hit again like 2008/09?

 

I did stock prices crash simulation on my portfolio and it seems to be better off than Mar 2009 low.




 Q2: Prepare to accept it if you have to.

That is the reason I will not be adding more stocks into my portfolio any sooner since I have prepared to accept the worst as it is.


Q3. Then calmly proceed to improve on the worst.”

I have taken back close to 98% of my invested capital since 2003 as war-chest for 2012 Bear 2.0 so I am unlikely to be caught naked like what happened in 2008/09.

BTW, for your investment decision, have you similarly ask yourself these three questions and how you answer them?

 

Spanish Lender Seeks 19 Billion Euros; Ratings Cut on 5 Banks

Spain’s banking crisis worsened Friday as the board of Bankia, the country’s biggest mortgage lender, warned that it would need an additional 19 billion euros ($23.88 billion), far beyond what the government estimated when it seized the bank and its portfolio of delinquent real estate loans.

The government is trying to head off a collapse of the bank, which could threaten the Spanish banking industry and reverberate through the financial centers of Europe and beyond. The fear is that it will not have the money to save its banks, and their 1 trillion euros, or $1.25 trillion, in deposits, and will need a rescue by the rest of Europe — even as Brussels and Frankfurt are struggling to resolve Greece’s debt debacle.

Bankia’s announcement came as Standard & Poor’s, the credit ratings agency, downgraded Bankia and two other banks, Banco Popular and Bankinter, to “junk” status and lowered the ratings of two other Spanish banks also staggered by mounting bad loans. A junk rating could make it even harder for Bankia to borrow its way out of trouble.

The rising fear now is that the recent steady trickle of deposits from Spain’s banks, which are suffering from the bursting of Spain’s real estate bubble, to institutions outside the country could eventually turn into the sort of bank run that almost brought the financial world to its knees after the collapse of Lehman Brothers in 2008.

Spain’s debt crisis is also playing out on another front. As its banks shudder, heavily indebted regional governments are also running out of money. On Friday, the government of the Catalonia region warned that it might no longer be able to finance its debts and called on the central government for help. While other regions have also sounded budget alarms, Catalonia is the biggest so far; it represents nearly one-fifth of Spain’s economy.

The central government, facing its own mounting debt, may soon be in no position to provide help to either the banks or the regions. And with an economy in recession and unemployment at the highest level in the euro zone, Madrid is falling further behind in meeting the deficit-reduction targets it has agreed to with the European Union.

Some flat owners sitting on a goldmine???

ST, Saturday, May 26, 2012

Queenstown estimated profit: $420K
Punggol estimated profit: $330K

Did my ex-neighbor living one floor below me really strike a lottery by selling his goldmine?

Read? Did he strike a lottery by selling his goldmine?

Anyone believe that he really strike a lottery by selling his goldmine?

But, I think his banker will love him for the next 20 years of his life. 

Olam and Wilmar - Walau pattern sama sama leh!

Commodity Fund Managers were selling at strength???

BBs fear Sour Greeks???

Olam - BBs still distributing???

Does XIRR over our investing time horizon say something about our portfolio performance?

Read? Why you need a return on your capital (investment) above inflation?

See example 1:

Do we need to generate consistent positive return on capital year-on-year to have good XIRR?

Not really. But we need to win bigger more often than we lose.

See example 2:

So what if you can consistently generate positive return every year but get hit by one Big Bear. Your XIRR will be in sorry state. Beware of Bear!!!!


BTW, anyone still doubting the usefulness of XIRR as a tool to measure our investing performance over market cycles?

Singapore's inflation rises to 5.4% in April

SINGAPORE: Singapore's inflation rate accelerated in April to 5.4 per cent.

The year-on-year increase in the consumer price index (CPI) is up from an increase of 5.2 per cent in March, figures from the Department of Statistics show.

Higher accommodation costs were the major contributor to the April increase.

Private road transport costs also continued to climb because of elevated COE prices, although they rose at a slower pace than in March.

The Monetary Authority of Singapore's (MAS) core inflation rate, which excludes accommodation and private road transport, fell in April to 2.7 per cent from 2.9 per cent the previous month. It attributed the decline to lower services and food inflation.

MAS reiterated its forecast for inflation to "remain elevated over the next few months, before easing gradually" in the second half of 2012.

The central bank forecasts CPI inflation at 3.5 per cent to 4.5 per cent for the year as a whole, and core inflation in the range of 2.5 per cent to 3.0 per cent.

The MAS said accommodation costs, which include imputed rentals on owner-occupied homes, will remain the biggest contributor to consumer inflation this year, "as leasing contracts continue to be renewed at rentals that are considerably higher than those under existing contracts, especially in the HDB segment".

"Car prices could also increase if CEO premiums rise further in response to tight CEO supply," the MAS statement said.

"In addition, wages and other costs will likely continue to pass through to consumer prices, albeit at a more moderate pace than that during early this year."

- CNA/wm