Thursday, December 31, 2009

What Jim Rogers Said.

"This time its different". I hear that a lot but its never different. Its just a different situation. Trees don`t grow to the sky, stock markets don`t go up forever, and high prices cut back demand. With prices high, a million guys pile in to figure out how to take advantage of all that money, bringing in supply and eventually driving down the price. No one has ever repealed the law of supply and demand, and no one ever will."

in Investment Biker

Friday, December 25, 2009

Senate OK's health care bill in victory for Obama

In an epic struggle settled at dawn, the Democratic-controlled Senate passed health care legislation Thursday, a triumph for President Barack Obama that clears the way for compromise talks with the House on a bill to reduce the ranks of the uninsured and rein in the insurance industry.

Thursday, December 24, 2009

Nikkei Hit 3-Month High Above 10,500 On Weaker Yen

The key Nikkei stock index rose sharply Thursday morning to a three-month intraday high above 10,500, with exporters buoyed by a weaker yen and sentiment lifted by Wall Street's gains while Japanese markets were closed for a national holiday the previous day.

By sector, iron and steel saw the largest percentage increase, followed by glass and ceramics, and trading houses. Export-oriented sectors such as electrical machinery and autos were also among major gainers. Meanwhile decliners included the real estate, air transport and banking sectors.

''With Japan's fiscal 2010 budget finally set for approval, the key ahead will be details of an economic growth strategy from Prime Minister (Yukio) Hatoyama,'' Nishi said. ''Stocks can rise further if such a strategy is presented, and investors may go on to test the Nikkei's closing high for this year of 10,639.71.''

Making the call on Stocks

Tuesday, December 22, 2009

CIMB merge with Public Bank ??

Economy in U.S. Expanded at a 2.2% Annual Rate in Third Quarter

The economy in the U.S. expanded in the third quarter at a slower pace than anticipated as companies curbed spending and cut inventories at an even faster pace, reductions that have set the stage for an acceleration in growth.

The 2.2 percent increase in gross domestic product from July through September compares with a 2.8 percent gain previously reported by the Commerce Department in Washington.

Thursday, December 17, 2009

Delta Petroleum Corporation Announces a Settlement on the California Offshore Lease Litigation

Delta Petroleum Corporation (Nasdaq: DPTR), an independent oil and gas exploration and development company, announces the signing of a settlement agreement with the federal government concerning Lease 452 located offshore of California.

Under the terms of the agreement, Delta will receive gross proceeds of $65 million, which will result in approximately $50 million net to the Company after all contingent payments to third parties. The settlement agreement fully concludes Delta's offshore California litigation against the federal government.

Monday, December 14, 2009

Abu Dhabi gives Dubai $10 billion in surprise bailout

Abu Dhabi stepped in to help fellow United Arab Emirates member Dubai with a $10 billion injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday.

"The government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World," the chairman of the Dubai Supreme Fiscal Committee said in a statement.

"As a first action for the new fund, the government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today."

The Senate sends $1.1 trillion spending bill to Obama

The Senate on Sunday passed a $1.1 trillion spending bill with increased budgets for vast areas of the federal government, including health, education, law enforcement and veterans' programs.

The more-than-1,000-page package, one of the last essential chores of Congress this year, passed 57-35 and now goes to President Barack Obama for his signature.

Congress must soon raise the debt ceiling, now at $12.1 trillion, so the Treasury can continue to borrow, and Democratic leaders are eyeing a new figure close to $14 trillion, pushing the issue past next November's election.

Monday, December 7, 2009

TA Global - Malaysia

TA Global Bhd, the property arm of TA ENTERPRISE BHD , will offer for sale 460 million existing shares of 50 sen each With the separation of TA Enterprise Bhd’s stockbroking and property businesses, Datuk Tony Tiah Thee Kian will be sitting on what will be among the top five property companies in the country in terms of market capitalisation.

TA Global is involved in property development and its portfolio of PROPERTIES include Menara TA One, shophouses at USJ Taipan and Subang Business Centre while in Australia, they are the Radisson Plaza Hotel in Sydney, The Westin Melbourne Hotel while in Canada, they are Terasen Centre and Aava Whistler Hotel.

TA Global non-independent, non-executive director Datin Alicia Tiah said TA Global expects to derive a lot of its revenue from its property investments and hotel operations, with its revenue from its hospitality division anticipated to increase threefold with its hotels in Australia, Singapore and Canada. (RM0.46)

Saturday, November 28, 2009

Dubai Crisis May End in ‘Major’ Default ?

Dubai’s debt woes may worsen to become a “major sovereign default” that roils developing nations and cuts off capital flows to emerging markets, Bank of America Corp. said.

Dubai, which borrowed $80 billion in a four-year construction boom to transform its economy into a tourism and financial hub, suffered the world’s steepest property slump in the recession. Home prices fell 50 percent from their 2008 peak, according to Frankfurt-based Deutsche Bank AG.

Dubai World, the state-owned holding company that’s in talks to renegotiate $26 billion of debt, may sell assets in the United Arab Emirates and abroad to repay its borrowings, a government official said.

Wednesday, November 11, 2009


The stage is set for the country’s and Southeast Asia’s biggest-ever IPO that will raise RM11.2 billion (US$3.3 billion) for its vendors, with the final selling price for Maxis Bhd fixed at RM5 per share for institutions and RM4.75 for retail investors.

Maxis will be automatically included as a component of the KLCI with effect from Nov 20. It would be the largest telco constituent (estimated weightage of 6.1% based on our calculation), raising the overall telecoms sector weightage on the index to 14.5% from 8.8% previously

Maxis in 11th place in index. Based on a investability weighting of 30% and a reference price of RM4.75, Maxis adjusted market cap of RM10,688m will put it just below AMMB's RM11,168m, making it the 11th larget stock on the index, with a weighting of 2.7%.Of course, this weightage will change depending on its share price movement after the listing.

Tuesday, November 10, 2009

XiDeLang fair value at 93 sen (Malaysia)

Research Institute has derived a fair value of 93 sen for sports shoe manufacturer XiDeLang Holdings Ltd, which will be listed on Bursa Malaysia on Wednesday, Nov 11. The issue price is 58 sen.

The research house said on Tuesday, Nov 10 that for comparison purposes, it selected a combination of companies that have similar business division and produce goods related to XiDeLang's portfolio of products.

The company is the brand-owner of the "XiDeLang" brand name, a multiple award winning sports brand name in China. The company designs, develops and produces sports-shoe under the "XiDeLang" brand.

XiDeLang's network spans across 25 provinces and municipalities with approximately 2,300 retail outlets in China. XiDeLang is operating in Jinjiang City, Fujian province, which is China's sports shoe manufacturing capital and one of the world's largest sports shoe manufacturing centres.

Sunday, November 8, 2009

House Passes $1 Trillion U.S. Health-Care Overhaul Legislation

U.S. drugmakers, medical-device companies and insurers are gearing up for another chance to make changes to House-passed legislation overhauling the health-care system when the issue moves to the Senate.

Stock Exchange of Cambodia

Stock Exchange Cambodia is scheduled to open in early of 2010. The draft legislation on corporate bonds is currently under process of finalizing according to Prime Minister Hun Sen.

KRX, which runs South Korea's stock market and has assisted in the development of Vietnam's financial markets, is seeking a 51 percent share of Cambodia's stock market. Before listing on the stock market, enterprises must improve their accounting systems and gain the confidence of citizens by making themselves more transparent.

According to the International Monetary Fund, Cambodia’s finance sector is growing gradually. A number of new banks were established in the country and bank loans and deposits are increasing by around 40 percent.

Cambodia also secured a B+ rating for long-term foreign and local currency government notes from Standard & Poor’s. Standard & Poor’s also awarded a short-term foreign and local currency rating of B. Moody’s assigned a foreign currency notes ceiling of B1, a foreign-currency ceiling for bank deposits of B3, and a local currency notes ceiling and a local currency deposit ceiling of Ba1.

Few Stocks to focus;

i. Telecom Cambodia
ii. Sihanoukville Autonomous Port
iii. Phnom Penh Autonomous water Supply Authority

REXLot Holdings Limited (0555.HK)

The Group's principal activities are operating a lottery business, providing financial services and money lending. Lottery business includes system and games development business and distribution and marketing business. Financial services include securities broking, margin financing and investment trading and holding. Operations are carried out in Hong Kong and the People's Republic of China.Its subsidiaries are principally engaged in the provision of lottery related system, machines and services to the Chinese Lottery market.

The Group is holding a controlling stake in Shenzhen Sinodata Technology Co Ltd (a leading equipment supplier for computer ticket games for Welfare Lottery in China), Guangzhou Latech Technology Co Ltd (which is involved in development and production of sports lottery machines, related operation software system and networks) and Shenzhen Kingsail Software Tech Co Ltd (which is involved in the development and deployment of lottery system for Sports Lottery in China) as well as 50% interest in Beijing Guard Libang Technology Co Ltd (the exclusive supplier of scratch card lottery games and system for Welfare Lottery in China). The Company has also set up a subsidiary REXLot Investment (Shenzhen) Co Ltd to focus on lottery distribution business in China. (HK$0.66)

Friday, November 6, 2009

Unemployment rate hits 10.2%, worst since 1983

The nation's unemployment rate rose above 10% for the first time since 1983 in October, a much worse jump than expected as employers continued to trim jobs from payrolls.

The reading, reported by the government Friday, is a sign of the continued weakness in the labor market even though the economy grew in the third quarter following the longest and deepest downturn since the Great Depression.

The government reported Friday that unemployment rate spiked to 10.2%, up from 9.8% in September. It is the highest that this rate has been since April 1983. Economists had forecast an increase to 9.9%.

Tuesday, November 3, 2009

Golden Agri-Resources Ltd - SGX

GAR’s primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunches into crude palm oil (“CPO”) and palm kernel oil; and refining CPO into value-added products such as cooking oils, margarine and shortening.
The Company operates a total planted area of 383,000 hectares, as well as 32 palm oil processing mills, three refineries and four kernel crushing plants in Indonesia.GAR also operates in China through an integrated deep-sea port, storage, oilseed crushing facilities and refinery facilities in Ningbo and Zhuhai. (S$0.43)

Tuesday, October 20, 2009

We want a strong Dollar; we need a strong Dollar

European finance officials are concerned the euro’s climb to a 14-month high against the dollar is eroding exports as an aide to French President Nicolas Sarkozy called the move a “disaster” for the economy.

“Excessive volatility” in currency rates is “bad for economic development,” European Central Bank President Jean- Claude Trichet said in an unscheduled appearance at a press conference late yesterday after a meeting of euro-area finance ministers in Luxembourg. “It’s a problem which worries us,” said Luxembourg’s Jean-Claude Juncker, who led the talks.

The euro has gained almost 20 percent against the dollar since February, making the region’s exports more expensive to overseas buyers and threatening the recovery from the worst recession since World War II. U.S. Treasury Secretary Timothy Geithner said on Oct. 3 that it is “very important” for the U.S. to have a strong dollar.

Sunday, October 18, 2009

the three little pigs

by Robert Kiyosaki

As you know, one pig built his house out of straw, the other of sticks. Once the first two pigs finished their houses they began to party, taunting and laughing at the third pig who was taking longer, building his house of bricks. After the house of bricks was finished, a big bad wolf appeared and blew down the houses of straw and sticks. If not for the shelter of the house of bricks, the first two pigs would have been pork dinner.

In 2007 a big bad wolf known as the ‘subprime crisis' blew down financial houses made of straw and sticks, houses known as Lehman Brothers, Bear Stearns, AIG, Merrill Lynch, Washington Mutual, Fannie Mae, and Countrywide -- as well as the homes and businesses of people who built their lives on straw and sticks.

Wednesday, October 14, 2009

Delta Petroleum Corporation - Nasdaq

Delta Petroleum Corporation engages in the exploration, acquisition, development, production, and sale of natural gas and crude oil in the United States. It owns producing and non-producing oil and natural gas interests, undeveloped leasehold interests, and related assets in 17 states, as well as interests in a producing Federal unit offshore California and undeveloped offshore Federal leases near Santa Barbara, California. The company also engages in contract drilling operations, as well as marketing trucking services in the Casper, Wyoming area. As of December 31, 2008, it had approximately 827.7 billion cubic feet of natural gas and 9.5 Mmbbls of crude oil. The company was founded in 1984 and is based in Denver, Colorado. ($1.70)

E*TRADE Financial Corporation - Nasdaq

E*TRADE Financial Corporation, through its subsidiaries, provides online brokerage and related products and services primarily to individual retail investors, under the brand name of E*TRADE Financial worldwide. It offers various brokerage products and services, including automated order placement and execution of the U.S. and international equities, currencies, futures, options, exchange-traded funds, mutual funds, and bonds. The company also provides quick transfer, wireless account access, extended hours trading, quotes, research, and advanced planning tools. Its banking products and services include checking, savings, sweep, money market, and certificates of deposit products. E*TRADE Financial primarily provides its services through its Web site at, as well as through its network of customer service representatives, relationship managers, and investment advisors. The company was founded in 1982 and is based in New York, New York. ($1.68)

Riverstone Holdings Limited - SGX

Riverstone Resources was established in year 1989. We specialize in the production of Cleanroom gloves, fingercots and packing bags. Over the years, with the full support of our valued customers and the commitment of our staff, we have grown to become the leading global supplier of Cleanroom gloves. (S$0.44)

Tuesday, October 6, 2009

Gold Jumps to Record as Inflation Outlook Fuels Investor Demand

Oct. 6 (Bloomberg) -- Gold rose to a record on speculation that inflation will accelerate and erode the value of the dollar, boosting the appeal of the precious metal for investors seeking to preserve their wealth. Gold futures climbed as high as $1,038 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar dropped as much as 0.6 percent against a basket of six currencies. Copper, zinc and sugar have led a 2009 surge in commodity prices. “Gold is acting like the ultimate currency,” said Chip Hanlon, president of Delta Global Advisors Inc. in Huntington Beach, California. “Central banks are following the same monetary course and trying to stimulate and inflate their way back to growth. Everyone’s concerned about the dollar but it’s not like you can hate the dollar and fall in love with the euro or the yen.” Gold futures for December delivery traded $18.30, or 1.8 percent, higher at $1,036.10 an ounce at 9:08 a.m. on the Comex division of the New York Mercantile Exchange. Bullion for immediate delivery in London gained as much as 1.9 percent to a record $1,036.30 an ounce.

Sunday, September 27, 2009


VIX is calculated and disseminated in real-time by the Chicago Board Options Exchange. It is a weighted blend of prices for a range of options on the S&P 500 index. The formula uses a kernel -smoothed estimator that takes as inputs the current market prices for all out-of-the-money calls and puts for the front month and second month expirations. The goal is to estimate the implied volatility of the S&P 500 index over the next 30 days.

The VIX is the square root of the par variance swap rate for a 30 day term initiated today. Note that the VIX is the volatility of a variance swap and not that of a volatility swap (volatility being the square root of variance). A variance swap can be perfectly statically replicated through vanilla puts and calls whereas a volatility swap requires dynamic hedging. The VIX is the risk neutral expectation of S&P volatility over the next 30 calendar days. The VIX is quoted on an annualized variance basis.

The VIX is quoted in terms of percentage points and translates, roughly, to the expected movement in the S&P 500 index over the next 30-day period, on an annualized basis. For example, if the VIX is at 15, this represents an expected annualized change of 15% over the next 30 days; thus one can infer that the index option markets expect the S&P 500 to move up or down over the next 30-day period. That is, index options are priced with the assumption of a 68% likelihood (one standard deviation) that the magnitude of the S&P 500's 30-day return will be less than 4.33% (up or down).

The price of
call options and put options can be used to calculate implied volatility, because volatility is one of the factors used to calculate the value of these options. Higher (or lower) volatility of the underlying security makes an option more (or less) valuable, since there is a greater (or smaller) probability that the option will expire in the money (i.e. with a market value above zero). So a higher option price implies greater volatility, other things being equal. Despite its sophisticated composition, however, the predictive power of VIX is similar to that of simpler measures, such as past volatility (see graphs on the right).

Investors believe that a high value of VIX translates into a greater degree of market uncertainty, while a low value of VIX is consistent with greater stability.

Although the VIX is often called the "fear index," a high VIX is not necessarily bearish for stocks. Instead, the VIX is a measure of fear of volatility in either direction, including to the upside. In practical terms, when investors anticipate large upside volatility, they are unwilling to sell upside "call" stock options unless they receive a large premium. Option buyers will be willing to pay such high premiums only if similarly anticipating a large upside move. The resulting aggregate of increases in upside stock option "call" prices raises the VIX just as does the aggregate growth in downside stock "put" option premiums that occur when option buyers and sellers anticipate a likely sharp move to the downside. When the market is believed as likely to soar as to plummet, writing any option that will cost the writer in the event of a sudden large move in either direction may look equally risky. Hence high VIX readings mean investors see significant risk that the market will move sharply, whether downward or upward. The highest VIX readings occur when investors anticipate that huge moves in either direction are likely. Only when investors perceive neither significant downside risk nor significant upside potential will the VIX be low.