呢位股癡 想話你知 咩叫股"賜" 咩叫股"辭"? 叻仔受賜 蠢仔必辭! 笑看風雲 定係瘋運? 利用風雲 享受瘋運 蠢仔風雲 變 成瘋暈 風雲必嚟 風雲必離
Saturday, November 28, 2009
THIS IS HOW IT ENDED ON FRIDAY,27TH NOV 2009
--look at how artificially the VIX is pushed up, compared to the falls in the stock market..
EXACTLY SAME AS OCT 30TH 2009---where vix is pushed up from 24.76 to 30.69 in ONE DAY-- oct 30th 2009,sp500 fell from 1066 to 1036 in a day--
THIS TECHNIQUE AS I TOLD BRO TOH CHWEE PENG EARLIER IN THE MORNING OVER THE PHONE IS CALLED RAMPING THE VIX UP TO ALLOW US STOCK MARKET MORE ROOM TO RISE...
i speak with evidence..it is the same bloody trick again..PUI!
MAJOR U.S. MARKET INDEXES
DOW
10309.92
-154.48
-1.48%
Dow Jones Industrial Average
S&P
1091.49
-19.14
-1.72%
S&P 500 Index
NAS
2138.44
-37.61
-1.73%
Nasdaq Composite
VIX
24.74
4.26
+20.8%
CBOE Volatility Index
--look at how artificially the VIX is pushed up, compared to the falls in the stock market..
EXACTLY SAME AS OCT 30TH 2009---where vix is pushed up from 24.76 to 30.69 in ONE DAY-- oct 30th 2009,sp500 fell from 1066 to 1036 in a day--
THIS TECHNIQUE AS I TOLD BRO TOH CHWEE PENG EARLIER IN THE MORNING OVER THE PHONE IS CALLED RAMPING THE VIX UP TO ALLOW US STOCK MARKET MORE ROOM TO RISE...
i speak with evidence..it is the same bloody trick again..PUI!
MAJOR U.S. MARKET INDEXES
DOW
10309.92
-154.48
-1.48%
Dow Jones Industrial Average
S&P
1091.49
-19.14
-1.72%
S&P 500 Index
NAS
2138.44
-37.61
-1.73%
Nasdaq Composite
VIX
24.74
4.26
+20.8%
CBOE Volatility Index
Wednesday, November 25, 2009
I AM DAMN FRUSTRATED AT IDIOTS TELLING ME THAT SHANGHAI PLUNGE TODAY BECAUSE OF RATE HIKES...THESE IDIOTS NEVER LOOK AT CHARTS AND ANYHOW SHOOT OFF...oh please!!!!!!!
I SHALL RECAP SOME OUTDATED NEWS TO REFRESH YOUR MEMORY HOW USELESS NEWS CAN BE....
Chinese stock markets sink despite rate cut
Rowan Callick, China correspondent
From: The Australian
September 17, 2008 12:00AM
EVEN China's first interest rate cut in six years could not stop the country's share markets sinking yesterday in response to the despair on Wall Street.
The Shanghai stock exchange's benchmark index fell by 4.47 per cent, crashing past the 2000 points barrier to close at 1986.64.
The market is thus worth less than a third of its value at its peak in mid-October last year, when it reached 6395.76. This marks the most rapid decline of any major market, even in such an internationally gloomy year.
The People's Bank of China, the central bank, had signalled on Monday evening -- the day was a public holiday in the Chinese world, for the Mid Autumn Festival -- a new priority: stimulating growth.
Fighting inflation -- which reached 8.7 per cent in February -- and "overheating" had been its previous focus, as it increased interest rates six times in 2007.
But the PBOC cut its benchmark interest rate by 27 basis points on Monday to help stimulate the economy, to 7.2 per cent, and also cut financial institutions' reserve ratio requirement by one percentage point to 16.5 per cent from September 25 -- although this will not apply to the "pillar banks" that dominate the market.
It had increased the reserve ratio five times earlier this year, as part of the monetary strategy to rein in what the Government had viewed as excessive investment.
Now, however, overall economic growth is slowing more than Beijing would like -- from 11.9 per cent in 2007 to 10.6 per cent in the first quarter of 2008, to 10.1 per cent in the second quarter.
And inflation now appears more contained -- the consumer price index rose by just 4.9 per cent in August.
Goldman Sachs commented on Monday night's monetary moves: "We see these adjustments as a positive step, given the unprecedented uncertainties in the international financial markets and rising downside risks in the domestic economy, in particular the real estate sector."
But Jing Ulrich, JPMorgan's chairman, China Equities, said: "Monday's asymmetric rate cuts -- the one-year lending rate was cut, while deposit rates were left unchanged -- sparked investor concern about the impact of narrower interest margins on the earnings outlook for Chinese banks."
Shi Lei, a Bank of China analyst in Beijing, told Reuters that the central bank shift was "mainly a signal for the stock market", with the 2000 points barrier "a key level where authorities feel they need to come in and help the market".
If that was indeed the prime motive, it didn't work. And there is no guarantee that the bottom has been reached yet.
The Hang Seng Index in Hong Kong also plunged yesterday, to its lowest level in nearly two years. But China's authorities retain control over the exchange rate, and the yuan is expected to be kept stable this week, in part to deter speculation that might arise from the changes in the bank settings.
Worryingly for Australia, commodities are also suffering as China catches the depressed international mood. Copper and aluminium each fell in Shanghai yesterday by their full 4 per cent daily limit.
Energy companies, important economic partners for Australia, have been suffering -- though falls in commodity prices should help them, especially since they suffer from government-imposed price caps on the other end.
The share price in Hong Kong of Chinese giant Shenhua Energy fell 12 per cent yesterday. And Huaneng Group, China's biggest power generating corporation, said yesterday that it was losing money despite two government-sanctioned tariff rises, by a total of 10 per cent, in the past two months. This is principally due to price rises for coal, which fuels about 80 per cent of China's electricity.
WHO SAYS THE STOCK MARKET MUST GO UP BECAUSE OF RATE CUTS?
WHO SAYS THE STOCK MARKET MUST GO DOWN BECAUSE OF RATE RISES?
Stocks up despite interest rate rise
Thursday,August 23,2007 Posted: 22:18 BJT(18 GMT)
From:Chinaview Article type:Reproduced
BEIJING, Aug. 23 -- The Shanghai stock market edged up yesterday despite the unexpected announcement of an interest rate hike by the central bank late on Tuesday. The People's Bank of China raised the one-year benchmark deposit rate by 27 basis points to 3.6 percent and the one-year lending rate by 18 basis points to 7.02 percent, effective from yesterday. Analysts said the rate rise will not have a negative impact on the stock market, which has plentiful liquidity. China still faces the problem of liquidity inflows, backed by the expectation of currency appreciation, which was further strengthened by the narrowing of the interest rate between the United States and China. The Shanghai Composite Index climbed 0.5 percent to close at 4980.07, yet another new high, with 555 out of 901 stocks closing higher. Turnover on the Shanghai bourse amounted to 162.2 billion yuan. The smaller Shenzhen Composite Index jumped by 1.68 percent to close at 1398.37, led by large-cap stocks. Meanwhile, the CSI 300, the underlying indicator of the upcoming index futures, surged 1.59 percent to break through the key barrier of 5000 points yesterday, closing at 5051.69. The CSI 300 medical index has surged the most, 193.49 percent, since the beginning of this year, followed by the CSI 300 raw materials index's jump of 185.06 percent, according to China Securities Index Co Ltd. Financial and real estate stocks contributed 28.93 percent of the CSI 300 index. "Plentiful liquidity is continuing to drive up the stock market. A small adjustment to the interest rate may not be able to solve the problem of excessive investment and liquidity in China's economy," an Orient Securities report said. "The negative interest rate may continue to lure investors to move money to the stock market. Blue-chip stocks, which were largely held by mutual funds, are expected to go up," said the report. Lin Wenjun, chief economist at Fullgoal Fund Management Co Ltd, said: "We are still positive about the A-share market, and the interest rate rise won't change our investment portfolio." Wu Feng, an analyst at TX Investment Consulting Co Ltd, said yesterday that the stock market may be volatile at 5000 points, a mark set by many institutional investors as a target point. "It is obvious that the stock market is rising at a slower pace and will be more volatile when it approaches 5000 points," he said. Stocks in the alcohol and travel sectors performed well. Wuliangye Group, China's largest liquor producer, jumped 9.76 percent to close at 35.98 yuan. Beijing Capital Co Ltd jumped to the daily limit to close at 15.17 yuan while Shenzhen Century Plaza also surged 10 percent
i think that idiots must have forgotten past news.today, so many people tell me that shanghai plunge today BECAUSE of interest rates rise..
WHAT A JOKE!!!
HAVE NOT IDIOTS LEARNT ENOUGH FROM THE STOCK MARKET NEVER TO TRUST NEWS?
I SHALL RECAP SOME OUTDATED NEWS TO REFRESH YOUR MEMORY HOW USELESS NEWS CAN BE....
Chinese stock markets sink despite rate cut
Rowan Callick, China correspondent
From: The Australian
September 17, 2008 12:00AM
EVEN China's first interest rate cut in six years could not stop the country's share markets sinking yesterday in response to the despair on Wall Street.
The Shanghai stock exchange's benchmark index fell by 4.47 per cent, crashing past the 2000 points barrier to close at 1986.64.
The market is thus worth less than a third of its value at its peak in mid-October last year, when it reached 6395.76. This marks the most rapid decline of any major market, even in such an internationally gloomy year.
The People's Bank of China, the central bank, had signalled on Monday evening -- the day was a public holiday in the Chinese world, for the Mid Autumn Festival -- a new priority: stimulating growth.
Fighting inflation -- which reached 8.7 per cent in February -- and "overheating" had been its previous focus, as it increased interest rates six times in 2007.
But the PBOC cut its benchmark interest rate by 27 basis points on Monday to help stimulate the economy, to 7.2 per cent, and also cut financial institutions' reserve ratio requirement by one percentage point to 16.5 per cent from September 25 -- although this will not apply to the "pillar banks" that dominate the market.
It had increased the reserve ratio five times earlier this year, as part of the monetary strategy to rein in what the Government had viewed as excessive investment.
Now, however, overall economic growth is slowing more than Beijing would like -- from 11.9 per cent in 2007 to 10.6 per cent in the first quarter of 2008, to 10.1 per cent in the second quarter.
And inflation now appears more contained -- the consumer price index rose by just 4.9 per cent in August.
Goldman Sachs commented on Monday night's monetary moves: "We see these adjustments as a positive step, given the unprecedented uncertainties in the international financial markets and rising downside risks in the domestic economy, in particular the real estate sector."
But Jing Ulrich, JPMorgan's chairman, China Equities, said: "Monday's asymmetric rate cuts -- the one-year lending rate was cut, while deposit rates were left unchanged -- sparked investor concern about the impact of narrower interest margins on the earnings outlook for Chinese banks."
Shi Lei, a Bank of China analyst in Beijing, told Reuters that the central bank shift was "mainly a signal for the stock market", with the 2000 points barrier "a key level where authorities feel they need to come in and help the market".
If that was indeed the prime motive, it didn't work. And there is no guarantee that the bottom has been reached yet.
The Hang Seng Index in Hong Kong also plunged yesterday, to its lowest level in nearly two years. But China's authorities retain control over the exchange rate, and the yuan is expected to be kept stable this week, in part to deter speculation that might arise from the changes in the bank settings.
Worryingly for Australia, commodities are also suffering as China catches the depressed international mood. Copper and aluminium each fell in Shanghai yesterday by their full 4 per cent daily limit.
Energy companies, important economic partners for Australia, have been suffering -- though falls in commodity prices should help them, especially since they suffer from government-imposed price caps on the other end.
The share price in Hong Kong of Chinese giant Shenhua Energy fell 12 per cent yesterday. And Huaneng Group, China's biggest power generating corporation, said yesterday that it was losing money despite two government-sanctioned tariff rises, by a total of 10 per cent, in the past two months. This is principally due to price rises for coal, which fuels about 80 per cent of China's electricity.
WHO SAYS THE STOCK MARKET MUST GO UP BECAUSE OF RATE CUTS?
WHO SAYS THE STOCK MARKET MUST GO DOWN BECAUSE OF RATE RISES?
Stocks up despite interest rate rise
Thursday,August 23,2007 Posted: 22:18 BJT(18 GMT)
From:Chinaview Article type:Reproduced
BEIJING, Aug. 23 -- The Shanghai stock market edged up yesterday despite the unexpected announcement of an interest rate hike by the central bank late on Tuesday. The People's Bank of China raised the one-year benchmark deposit rate by 27 basis points to 3.6 percent and the one-year lending rate by 18 basis points to 7.02 percent, effective from yesterday. Analysts said the rate rise will not have a negative impact on the stock market, which has plentiful liquidity. China still faces the problem of liquidity inflows, backed by the expectation of currency appreciation, which was further strengthened by the narrowing of the interest rate between the United States and China. The Shanghai Composite Index climbed 0.5 percent to close at 4980.07, yet another new high, with 555 out of 901 stocks closing higher. Turnover on the Shanghai bourse amounted to 162.2 billion yuan. The smaller Shenzhen Composite Index jumped by 1.68 percent to close at 1398.37, led by large-cap stocks. Meanwhile, the CSI 300, the underlying indicator of the upcoming index futures, surged 1.59 percent to break through the key barrier of 5000 points yesterday, closing at 5051.69. The CSI 300 medical index has surged the most, 193.49 percent, since the beginning of this year, followed by the CSI 300 raw materials index's jump of 185.06 percent, according to China Securities Index Co Ltd. Financial and real estate stocks contributed 28.93 percent of the CSI 300 index. "Plentiful liquidity is continuing to drive up the stock market. A small adjustment to the interest rate may not be able to solve the problem of excessive investment and liquidity in China's economy," an Orient Securities report said. "The negative interest rate may continue to lure investors to move money to the stock market. Blue-chip stocks, which were largely held by mutual funds, are expected to go up," said the report. Lin Wenjun, chief economist at Fullgoal Fund Management Co Ltd, said: "We are still positive about the A-share market, and the interest rate rise won't change our investment portfolio." Wu Feng, an analyst at TX Investment Consulting Co Ltd, said yesterday that the stock market may be volatile at 5000 points, a mark set by many institutional investors as a target point. "It is obvious that the stock market is rising at a slower pace and will be more volatile when it approaches 5000 points," he said. Stocks in the alcohol and travel sectors performed well. Wuliangye Group, China's largest liquor producer, jumped 9.76 percent to close at 35.98 yuan. Beijing Capital Co Ltd jumped to the daily limit to close at 15.17 yuan while Shenzhen Century Plaza also surged 10 percent
i think that idiots must have forgotten past news.today, so many people tell me that shanghai plunge today BECAUSE of interest rates rise..
WHAT A JOKE!!!
HAVE NOT IDIOTS LEARNT ENOUGH FROM THE STOCK MARKET NEVER TO TRUST NEWS?
Tuesday, November 24, 2009
Sunday, November 22, 2009
SHANGHAI COMPOSITE IS A FORE RUNNER OF THE WORLD MARKETS--
there will be an impending correction of about 20 pc when --
1. the rising wedge distance to the CONVERGING point lies 3 to 4 months from NOW,nov 21 2009--JAN/FEB 2010
2. shanghai experienced a 25 percent drop in august 2009,add a 5months (october 2008- shanghai bottom,march 2009-us mkt bottom) yield JANUARY 2010
THIS IS CALLED TIAN SHI DI LI....
TIMING AND TARGET BOTH ACHIEVED--EUREKA!!
I SAW A VERY CLEAR PICTURE NOW...................................
PREDICTION SAID ON NOV 21ST 2009
EVERYTHING COINCIDES---
1.RISING WEDGE NARROWS AT 1240
2.INVERTED HEAD AND SHOULDERS BROKEN in july 2009
TARGET calculated earlier-- 1248
3. fibonnacci at 1228
4. 2ND LEG UP TARGET ALSO CALCULATED IN MY EARLIER POSTS,--ALSO 1248
WATCH OUT FOR 1230 TO 1248--SHORT BIG TIME at 1250+
PREDICTED ON 21ST NOV 2009
Friday, November 20, 2009
DJ TAKING STOCK: Solid Singapore IPO Market Overlooked (2009/11/20 16:51PM)
By Kirsty Green
A Dow Jones Newswires Column
SINGAPORE (Dow Jones)--Given Singapore''s recent track record on initial public offerings, it seems a little odd that some local companies are turning to the Hong Kong market to try and unlock value.
While the Singapore market may lack the glamour of its regional rivals, when it comes to IPOs, it''s no lame duck. In the last three months, Singapore has seen every single IPO rise on its debut.
That''s a record to turn major regional rival Hong Kong green with envy. Yet Singapore companies still turn to Hong Kong in the hope of injecting a little fizz into their share prices.
But they may find it is a trickier affair these days. Take palm oil giant Wilmar, whose planned Hong Kong IPO of its China business has been stalled for months while the company monitors stock market conditions.
In contrast, property developer CapitaLand''s decision to float its shopping malls unit, CapitaMalls Asia, in Singapore looks shrewd. The Singapore market appears to have had no problem absorbing what will be its largest IPO in over a decade. In fact, the market has lapped it up.
The CapitaMalls Asia IPO, which will raise up to S$2.8 billion, was quick to come to market, priced near the midpoint of the planned range and was upsized amid strong demand from institutional investors. All the signs are that the IPO will be another Singapore success story with trading in the stock due to start on November 25.
The business that Wilmar plans to float is a China one, so it could be argued it makes geographical sense to list in Hong Kong. But the majority of CapitaMalls Asia''s shopping malls are also in China, so it too could perhaps have gone down the Hong Kong route. In hindsight, its decision not to looks a wise one.
It''s fair to say that Singapore has less IPO issuance to absorb than Hong Kong, which can help a company attract more interest for its offering. There are also simply fewer companies listed in Singapore, so a new entrant can frame itself as a unique play.
Analysts say that this means Hong Kong investors are a little more choosy compared with their Singapore counterparts. And Singapore investors also tend to be less cynical and trust that IPOs will be attractively priced.
my own comments--(remember chartered semiCON??)
Singapore''s receptive investors are nothing new. In the first three months of this year, when rights issues rather than IPOs were all the rage, the Singapore market digested over US$3 billion worth of rights issues, according to Dealogic. That was two-thirds of the entire equity issuance in the Asia ex-Japan region.
With Singapore''s quietly buzzing IPO market, maybe local companies should look on their own doorstep first when they want to tap the market.
(Kirsty Green covers Singapore''s stock market for Dow Jones Newswires. Previously based in London, she spent four years as an equity research analyst at JPMorgan and HSBC. She can be reached on 65 6415 4158 or by email at kirsty.green@dowjones.com)
TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.
Click here to go to Dow Jones NewsPlus, a web front page of today''s most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=gyIeLruqfDw8oTeTiQmhBg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 20, 2009 03:51 ET (08:51 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
By Kirsty Green
A Dow Jones Newswires Column
SINGAPORE (Dow Jones)--Given Singapore''s recent track record on initial public offerings, it seems a little odd that some local companies are turning to the Hong Kong market to try and unlock value.
While the Singapore market may lack the glamour of its regional rivals, when it comes to IPOs, it''s no lame duck. In the last three months, Singapore has seen every single IPO rise on its debut.
That''s a record to turn major regional rival Hong Kong green with envy. Yet Singapore companies still turn to Hong Kong in the hope of injecting a little fizz into their share prices.
But they may find it is a trickier affair these days. Take palm oil giant Wilmar, whose planned Hong Kong IPO of its China business has been stalled for months while the company monitors stock market conditions.
In contrast, property developer CapitaLand''s decision to float its shopping malls unit, CapitaMalls Asia, in Singapore looks shrewd. The Singapore market appears to have had no problem absorbing what will be its largest IPO in over a decade. In fact, the market has lapped it up.
The CapitaMalls Asia IPO, which will raise up to S$2.8 billion, was quick to come to market, priced near the midpoint of the planned range and was upsized amid strong demand from institutional investors. All the signs are that the IPO will be another Singapore success story with trading in the stock due to start on November 25.
The business that Wilmar plans to float is a China one, so it could be argued it makes geographical sense to list in Hong Kong. But the majority of CapitaMalls Asia''s shopping malls are also in China, so it too could perhaps have gone down the Hong Kong route. In hindsight, its decision not to looks a wise one.
It''s fair to say that Singapore has less IPO issuance to absorb than Hong Kong, which can help a company attract more interest for its offering. There are also simply fewer companies listed in Singapore, so a new entrant can frame itself as a unique play.
Analysts say that this means Hong Kong investors are a little more choosy compared with their Singapore counterparts. And Singapore investors also tend to be less cynical and trust that IPOs will be attractively priced.
my own comments--(remember chartered semiCON??)
Singapore''s receptive investors are nothing new. In the first three months of this year, when rights issues rather than IPOs were all the rage, the Singapore market digested over US$3 billion worth of rights issues, according to Dealogic. That was two-thirds of the entire equity issuance in the Asia ex-Japan region.
With Singapore''s quietly buzzing IPO market, maybe local companies should look on their own doorstep first when they want to tap the market.
(Kirsty Green covers Singapore''s stock market for Dow Jones Newswires. Previously based in London, she spent four years as an equity research analyst at JPMorgan and HSBC. She can be reached on 65 6415 4158 or by email at kirsty.green@dowjones.com)
TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAsia@dowjones.com. Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.
Click here to go to Dow Jones NewsPlus, a web front page of today''s most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=gyIeLruqfDw8oTeTiQmhBg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 20, 2009 03:51 ET (08:51 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
Thursday, November 19, 2009
TODAY MY TOPIC OF MY LECTURE IS
---WHY MERCATOR is my darling for 2010????
LET ME SHARE WITH YOU PAST EVIDENCES
from shares book,available from bookstores
POINT ONE--EXCELLENT COMPANY FUNDAMENTALS
1.mercator never suffer losses in subprime crises,only plunge in profits.look at NOL---HEAVY losses,NOL during bull run pathetic profit margins
evidence--
a.Oct 28, 2009
Mercator Singapore Reports A Net Profit Of USD 20.2 Million For First Half 2010 (1HFY2010)
b. May 14, 2009
Mercator Singapore Reports 45% Growth In Net Profits To US$ 75.8 Million For FY2009
c. May 07, 2008
Mercator Reports Three-Fold Jump In FY2008 Net Profit To US$52.2 Million, Supported By Growing Fleet And Buoyant Dry Bulk Shipping Demand
2. Good dividend play
a.Sep 23, 2009
The First And Final Dividend Of 1.16 Singapore Cents Per Share One Tier Tax Exempt For The Year Ended 31 March 2009 - Allotment And Issue Of New Shares And Payment In Cash
from mercator website-www.mlindia.com
1.Ownership Structure
Shareholding pattern of Shares as on September 30, 2009.
Sr. No.
Category
No. of Holders
No. of Shares
%to Capital
1
Promoters' Holding
10
89524066
37.94
2
Institutional Investors
0
0
0.00
3
Mutual Funds / UTI
13
12154228
5.15
4
Banks, FIs, Insurance Companies
6
1528045
0.65
5
FIIs
42
43673589
18.51
6
Private Corporate Bodies
2479
23811827
10.09
7
Indian Public
98007
62221838
26.37
8
NRI's / OCB's
1813
2543585
1.08
9
Other Non Promoter Directors
8
474895
0.20
Total
102378
235932073
100.00
Mutual Funds invested in this company
Scheme
% of asset size
Sundaram BNP Paribas Select Midcap - Dividend
2.32
Sundaram BNP Paribas Select Midcap - Growth
1.71
LIC MF Unit Linked Insurance Scheme - Dividend
1.44
LIC MF Balanced - Plan - Gr - Growth
1.39
LIC MF Balanced - Plan - Div - Dividend
1.39
2. mercator wins awards--
Mercator Lines (Singapore) limited wins "Singapore Corporate Awards"
Mercator Lines (Singapore) Limited, a subsidiary of Mercator Lines Limited, has won Singapore Corporate Awards 2009 (SCA), in two categories viz; Best Annual Report Award (Bronze) in the "$300 million to less than $1 billion market capitalisation'' category as well as the Best Annual Report Award (Silver) in the "Newly-Listed Companies'' category.
Mumbai, Maharashtra, April 30, 2009 /India PRwire/ -- Mercator Lines (Singapore) Limited, a subsidiary of Mercator Lines Limited, has won Singapore Corporate Awards 2009 (SCA), in two categories viz; Best Annual Report Award (Bronze) in the "$300 million to less than $1 billion market capitalisation'' category as well as the Best Annual Report Award (Silver) in the "Newly-Listed Companies'' category. The award was presented to Mr. Shalabh Mittal, Managing Director and CEO, Mercator Lines (Singapore) Limited on April 23rd 2009.
Historically, it is for the first time that an Indian owned company has received such recognition. It has not only boosted company’s image but has also brought India on Singapore’s landscape of corporate governance, industry sources revealed.
This is one of the five awards which make up coveted “Singapore Corporate Awards”, others being the Best Managed Board, Best Chief Executive Officer, Best Chief Financial Officer, and Best Investor Relations. The SCA’s are organised by Singapore’s leading business publication house Business Times and supported by Singapore Exchange; there are several other partners to the organizers; ranging from professional institutions to academia to consulting firms.
The Best Annual Report Award is given on the basis of quality and timely disclosures of financial highlights, Industry report, corporate governance report, risk management reporting and several other factors through two-stage screening process by high powered panel of judges.
“We are delighted that our Singapore subsidiary has won this coveted award in two categories within the first year of their listing, the awards reaffirm Mercator’s commitment towards high corporate governance standards” said Mr H.K.Mittal, Chairman, Mercator Lines Limited. “It’s a matter of great satisfaction and pride that an Indian company’s subsidiary has achieved this honour despite stiff competition in Singapore” concludes Mr Mittal”.
Notes to Editor
Mercator Lines Limited, the second largest private sector shipping company in India (by aggregate fleet tonnage capacity), has global presence through its subsidiaries. The group has diversified interests and is a strong player in Tankers, Bulk Carriers, Dredging, Coal Mining; Logistics and Offshore and presently owns or operates a fleet of 1 Rig; 13 dry carriers; 11 tankers and 4 dredgers. For further information please log onto http://www.mercator.in/ or http://www.mllsg.com/
From: Mitesh M Kapadia, Sentinel Public Relations / Sentinel Advertising Services, B-603, Samajdeep, Near Bhanu Park/Seasons Restaurant, Adukia Road, Off S V Road, Kandivli (W), Mumbai 400 067. INDIA. Tel: (91 22) 28625131/32. Cel: +91 98205 03876. Fax: (022) 28625133.
pt.3
Mercator Lines aims to become a $5 billion company
04 Nov 2009
It all started with an idea floated by a co-passenger in a flight. Harish K. Mittal, owner of India’s second largest private shipping line, does not remember the passenger’s name, but his suggestion on starting a shipping firm way back in the early 1980s stuck in his mind. Mittal, then running a chemical factory in Muzaffarnagar in UttarPradesh, mentioned this idea to Atul Agarwal, who is married to hiswife’s sister. Agarwal was at the time auditing some companies thatincluded a few shipping firms. In 1988, Agarwal mentioned that Mumbai-based Mercator Lines Ltd was onthe block. Mittal, then also into the business of buying ship scrap,did not hesitate. He bought the firm for Rs1.2 crore from theRamchandani family.From Rs65 lakh in 1988, the firm’s revenue increased to Rs2,200 crorein the year ended 31 March. Mercator Lines today runs a fleet of 28vessels, up from three barges in the year Mittal bought the firm.The shipping line, riding high on the wave of India’s economicliberalization since the 1990s, listed on the Bombay Stock Exchange in1993 and has never missed paying a a yearly dividend to shareholders,Mittal says.The 59-year-old entrepreneur now wants to make his firm a $5 billion(around Rs23,550 crore) company, an “ambitious dream,” but notimpossible for a shipping line that reported a revenue of just Rs60crore just five years ago.From a traditional tanker company, Mercator today has a presence inbulk shipping, tanker shipping, dredging, offshore oil exploration andcoal mines.“We have already acquired four coal mines in Indonesia and one inMozambique. We are now looking for acquiring one more in Indonesia.This will enable us to offer a complete logistics package includingcoal, ship and local logistics,” says Mittal, who holds a 1973postgraduate degree in technology from the Indian Institute ofTechnology, Roorkee, then known as the University of Roorkee. A majority of new Indian power projects are eyeing imported coal, mainly from Indonesia, to run their plants.Mittal attributes his success to his management team. An analyst agrees. “Mercator Lines management was always aggressive tograb every opportunity that came before them, be it dredging, coalmines, offshore or dry bulk ships,” says Kapil Yadav, an analyst withdomestic brokerage Dolat Capital Market Pvt. Ltd. Yadav tracks thefirm’s scrip.“The business model of Mercator Lines is to diversify to severalsegments to derisk, while locking in its vessels for long-termcontracts to mitigate the volatility of freight rates,” he says.Mercator Lines has acquired four dredgers and plans to add six more toits portfolio. Indian ports continuously require dredging to keep theirshipping channels deep. State-run Dredging Corp. of India Ltd is unableto meet the entire requirements of the country’s ports. Someinternational dredging companies have set up shop in India to tap themarket potential.“We are very serious about dredging,” says Mittal. “Apart from dredging, we are also upbeat about the offshore sector.” Mercator Lines, as part of a strategy to derisk the cyclical nature ofits core shipping business, entered the offshore drilling business withthe delivery of a Rs1,000 crore jack-up rig. The rig was immediatelydeployed on a three-year contract with state-owned Oil and Natural GasCorp. Ltd through Great Eastern Shipping Co. Ltd.“We are constantly looking for other areas of offshore business,exclusive offshore support vessels. This could be anything, highspecification rigs or other areas,” Mittal says. “Mercator wascontracted two oil blocks under the seventh round of the newexploration licensing policy,” Mittal said.In December 2007, Mercator Lines listed its Singapore-based subsidiaryon the Singapore Stock Exchange and raised over Rs500 crore. Last year, shipping firms were hit by the global economic downturn thatled to a steep decline in world trade and caused freight rates to fall.“Though there are some signs of revival, I think the next two years aregoing to be tough for the shipping sector,” Mittal says. “Ourdiversification model is going to save us during this crisis.” “Though Mercator has done everything to de-risk by diversifying, as ashipping company it will be exposed to volatility since it is acyclical industry,” Dolat’s Yadav says. Mittal, however, remains optimistic. He says all the business segmentsof his firm are growing and he would continue to invest in these.“Nothing stops us from aiming at being a $5 billion company.” Source: Livemint
Rs23550CRORE????
latest at nov 18th 2009
61.90 +4.50 +7.84% 18 Nov, 15:58:43
Volume
5,202,426
Prev Close
57.40
Day's H/L (Rs)
62.90 - 57.20
52wk H/L (Rs)
76.75 - 21.00
Mkt Cap (Rs Cr)
1,460.84
1460 TO 23550????????????????15 times????????????????AHHHHH HUAT AH!!!!!!MERCATOR AT 4.50 SGD???????????????????????????????????
POINT NUMBER 2--BALTIC DRY INDEX HAS ROCKETED, broke june 09 highs--making sure that the economic recovery is intact.
FROM WIKIPEDIA--The BDI is termed a leading economic indicator because it predicts future economic activity.
Because it provides "an assessment of the price of moving the major raw materials by sea," according to The Baltic, "... it provides both a rare window into the highly opaque and diffuse shipping market and an accurate barometer of the volume of global trade -- devoid of political and other agenda concerns
FROM WIKIPEDIA--
Impact of 2008 financial crisis (on BDI)
On 20 May 2008 the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986., though by 4 February 2009 it had recovered a little lost ground, back to 1,316. These low rates moved dangerously close to the combined operating costs of vessels, fuel, and crews.
By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the reduction of letters of credit, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for shipping companies, with several major bankruptcies and implications for shipyards.This, combined with the collapsing price of raw commodities created a perfect storm for the world's marine commerce.
YET MERCATOR IS PROFITABLE!!!!
POINT NUMBER 3--
MERCATOR IS GOING INTO COAL MINING BUSINESS IN 2010--
from wikipedia also...
Mozambique gold mine
In early 2008, the company's overseas arm, Mercator Lines Singapore Limited, was awarded a coal block in Mozambique. It turned out to be a gold mine with an estimated reserve of 3 billion tonnes of coal. Mercator owns 85% economic interest in the mine and it has a 30-year mining lease. The mining will begin in 2010, and the company will pay $1 per tonne royalty to the Government of Mozambique.
POINT NUMBER 4--STRONG CLIENT BASE--LESSER RISK OF DEFAULT!!!(source--SHARESINVESTOR)
Mercator displays prudence amid shipping slump
Sunday, August 2, 2009 at 6:00pm
Its reliable core group of customers along with prudent risk management equip Mercator Lines to weather the shipping slump. By Ridwan Abbas
It has been a rough few months for dry bulk shipping charterers as the industry grapples with a tight credit market and a slowdown in demand for commodities.
Freight rates have tumbled and the Baltic Dry Index (BDI), used as the global benchmark for the cost of shipping commodities, has plunged nearly 100 per cent since June. Vessels which were commanding US$50,000 daily as recently as September are now scraping through at US$4,000 a day rates, according to one analyst.
But Indian bulk shipper Mercator Lines is not hitting the panic button as yet, and with good reason: 73 per cent of its 11 bulk carriers are running on long-term contracts – ranging from one to five years – and have fixed prices locked in. This in turn limits its exposure to the volatile BDI used as a benchmark on the spot market.
“We know that the market can be very volatile and in 2007, we bought four ships Shalabh Mittal, chief executive officer of Mercator Lines. and were very happy that we chartered them out at US$35,000. But by the end of November, we were looking like fools as the market was US$90,000; today it looks fabulous because the market is at around US$6,000 and we’re chartering it for US$35,000,” says Shalabh Mittal, chief executive officer of Mercator Lines.
The company’s prudent risk management strategy, which includes allocating at least 70 per cent of its fleet for long-term charters at fixed rates, has been vindicated in these challenging times.
For the first half of financial year 2008 (FY08)ended September 30, the group registered a 239 per cent increase in profits to US$48 million on the back of an 84 per cent rise in revenue to US$108 million.
Strong customer base
Mercator Lines specialises in the transportation of coal into India from Australia and Indonesia, as well as iron ore from India into China, Japan and South Korea. India accounts for roughly 25 per cent of the group’s revenue, with its biggest customer being blue-chip power utility firm Tata Power. I
n June, the two companies signed a contract worth US$320 million to transport three million tonnes of coal from Indonesia to India, which will require five Panamex vessels to be deployed over four years.
Tata is the major power plant that provides energy to Mumbai and its neighbouring suburbs. Being a key customer, Tata contributed roughly 34 per cent to Mercator’s earnings for financial year 2007 to 2008.
Coal is indeed a major source of energy to the Indian economy with over 54 per cent of domestic power generation coming from coal-fired power plants, according to India’s Ministry of Coal.
Having already invested US$1.2 billion in two Indonesian mines in 2007, recent reports have suggest that Tata Power may be looking for more coal mine deals to increase its power-generating capacity.
DBS Group Research noted that India’s state and private utilities aim to almost double the nation’s generation capacity from 141,000 megawatts to 250,000 megawatts by 2017. It also added that the demand for dry bulk carriers for shipments of thermal coal into India and iron ore out of India should increase as the country’s GDP grows.
Outside India, Mercator also has a welldiversified customer base which includes North China Lines Shipping and Siba Ships of Italy along with Arcelor Mittal, the world’s largest steel producer by revenue.
“We tend to work with not only good names but also end-users type of customers. People like Tata and Arcelor, they’re all power plants or steel plants themselves and they transport iron-ore, they transport coal, they transport steel…even if their volume decreases, they still need these ships to move the cargo out,” says Mr Mittal.
Possible headwinds
The global wheels of trade are beginning to show signs of creaking as worsening market conditions mean that banks are more reluctant to issue Letters of Credit to commodity traders, which is traditionally required to load cargoes for departure at ports.
Slower economic growth for the next year or so would also affect steel production and the subsequent demand for iron ores. While recognising that demand in China and India would clearly dip, Mr Mittal still feels that the situation in these markets “would not be that bad.”
The Asian Development Bank predicted that even if growth in China and India decelerate, both economies are still expected to expand by about 9.5 and 7 per cent respectively in 2009.
Mercator may be buffered from the weak charter rates on the spot market through its fixed cost long-term contracts, but it also means that its rates are at a massive premium compared to other industry players. Hence, isn’t the company worried that its customers may renege on these contracts?
“Yes, but from our experience, we haven’t seen such a thing happen before. You don’t expect names such as Tata Power and Arecelor Mittal to come back and default on their contracts…but the risk will always hang there because the difference in the contract price and market price is dramatic,” says Mr Mittal.
Staying on strategy
Having been fairly profitable in the first six months of FY08, the company is sitting on positive cash flows and has no refinancing obligations for the next five years.
Not surprisingly, Mercator is intent on staying consistent with its strategy. Aside from allocating at least 70 per cent of its ships for long-term fixed rate charters and selecting reputable end-user type customers, Mercator’s ships are only bought against contracts already agreed upon.
“You need to have business in hand; customers in hand or you could have a ship and have nowhere to run it,” says Mr Mittal.
“In good times, it’s very easy to run ships because the demand is very high. But these are testing times so you need your customer base, people who you have a relationship with. You understand their constraints and you can come up with solutions rather than just giving a ship on hire,” he added.
In these challenging times, traditional business principles of prudent risk management and enduring relationships could not be more relevant.
Copyright © SMARTINVESTOR
Smart Investor is available at leading magazine outlets To subscribe, call 6393 9772 or e-mail http://ja-jp.facebook.com/note_redirect.php?note_id=107374509237&h=44da7a487faef5ebef76ea5ff073cb41&url=http%3A%2F%2Fwww.prosperitypersonal.sg%2Fcommunity%2Fmailto%3Acirculation%40lexicon.com.sg For feedback, e-mail: smartinvestor@lexicon.com.sg
the ABOVE research was done by YOURS TRULY---
havent the thorough research answer your questions on WHY MERCATOR?
WHY 2010?
---WHY MERCATOR is my darling for 2010????
LET ME SHARE WITH YOU PAST EVIDENCES
from shares book,available from bookstores
POINT ONE--EXCELLENT COMPANY FUNDAMENTALS
1.mercator never suffer losses in subprime crises,only plunge in profits.look at NOL---HEAVY losses,NOL during bull run pathetic profit margins
evidence--
a.Oct 28, 2009
Mercator Singapore Reports A Net Profit Of USD 20.2 Million For First Half 2010 (1HFY2010)
b. May 14, 2009
Mercator Singapore Reports 45% Growth In Net Profits To US$ 75.8 Million For FY2009
c. May 07, 2008
Mercator Reports Three-Fold Jump In FY2008 Net Profit To US$52.2 Million, Supported By Growing Fleet And Buoyant Dry Bulk Shipping Demand
2. Good dividend play
a.Sep 23, 2009
The First And Final Dividend Of 1.16 Singapore Cents Per Share One Tier Tax Exempt For The Year Ended 31 March 2009 - Allotment And Issue Of New Shares And Payment In Cash
from mercator website-www.mlindia.com
1.Ownership Structure
Shareholding pattern of Shares as on September 30, 2009.
Sr. No.
Category
No. of Holders
No. of Shares
%to Capital
1
Promoters' Holding
10
89524066
37.94
2
Institutional Investors
0
0
0.00
3
Mutual Funds / UTI
13
12154228
5.15
4
Banks, FIs, Insurance Companies
6
1528045
0.65
5
FIIs
42
43673589
18.51
6
Private Corporate Bodies
2479
23811827
10.09
7
Indian Public
98007
62221838
26.37
8
NRI's / OCB's
1813
2543585
1.08
9
Other Non Promoter Directors
8
474895
0.20
Total
102378
235932073
100.00
Mutual Funds invested in this company
Scheme
% of asset size
Sundaram BNP Paribas Select Midcap - Dividend
2.32
Sundaram BNP Paribas Select Midcap - Growth
1.71
LIC MF Unit Linked Insurance Scheme - Dividend
1.44
LIC MF Balanced - Plan - Gr - Growth
1.39
LIC MF Balanced - Plan - Div - Dividend
1.39
2. mercator wins awards--
Mercator Lines (Singapore) limited wins "Singapore Corporate Awards"
Mercator Lines (Singapore) Limited, a subsidiary of Mercator Lines Limited, has won Singapore Corporate Awards 2009 (SCA), in two categories viz; Best Annual Report Award (Bronze) in the "$300 million to less than $1 billion market capitalisation'' category as well as the Best Annual Report Award (Silver) in the "Newly-Listed Companies'' category.
Mumbai, Maharashtra, April 30, 2009 /India PRwire/ -- Mercator Lines (Singapore) Limited, a subsidiary of Mercator Lines Limited, has won Singapore Corporate Awards 2009 (SCA), in two categories viz; Best Annual Report Award (Bronze) in the "$300 million to less than $1 billion market capitalisation'' category as well as the Best Annual Report Award (Silver) in the "Newly-Listed Companies'' category. The award was presented to Mr. Shalabh Mittal, Managing Director and CEO, Mercator Lines (Singapore) Limited on April 23rd 2009.
Historically, it is for the first time that an Indian owned company has received such recognition. It has not only boosted company’s image but has also brought India on Singapore’s landscape of corporate governance, industry sources revealed.
This is one of the five awards which make up coveted “Singapore Corporate Awards”, others being the Best Managed Board, Best Chief Executive Officer, Best Chief Financial Officer, and Best Investor Relations. The SCA’s are organised by Singapore’s leading business publication house Business Times and supported by Singapore Exchange; there are several other partners to the organizers; ranging from professional institutions to academia to consulting firms.
The Best Annual Report Award is given on the basis of quality and timely disclosures of financial highlights, Industry report, corporate governance report, risk management reporting and several other factors through two-stage screening process by high powered panel of judges.
“We are delighted that our Singapore subsidiary has won this coveted award in two categories within the first year of their listing, the awards reaffirm Mercator’s commitment towards high corporate governance standards” said Mr H.K.Mittal, Chairman, Mercator Lines Limited. “It’s a matter of great satisfaction and pride that an Indian company’s subsidiary has achieved this honour despite stiff competition in Singapore” concludes Mr Mittal”.
Notes to Editor
Mercator Lines Limited, the second largest private sector shipping company in India (by aggregate fleet tonnage capacity), has global presence through its subsidiaries. The group has diversified interests and is a strong player in Tankers, Bulk Carriers, Dredging, Coal Mining; Logistics and Offshore and presently owns or operates a fleet of 1 Rig; 13 dry carriers; 11 tankers and 4 dredgers. For further information please log onto http://www.mercator.in/ or http://www.mllsg.com/
From: Mitesh M Kapadia, Sentinel Public Relations / Sentinel Advertising Services, B-603, Samajdeep, Near Bhanu Park/Seasons Restaurant, Adukia Road, Off S V Road, Kandivli (W), Mumbai 400 067. INDIA. Tel: (91 22) 28625131/32. Cel: +91 98205 03876. Fax: (022) 28625133.
pt.3
Mercator Lines aims to become a $5 billion company
04 Nov 2009
It all started with an idea floated by a co-passenger in a flight. Harish K. Mittal, owner of India’s second largest private shipping line, does not remember the passenger’s name, but his suggestion on starting a shipping firm way back in the early 1980s stuck in his mind. Mittal, then running a chemical factory in Muzaffarnagar in UttarPradesh, mentioned this idea to Atul Agarwal, who is married to hiswife’s sister. Agarwal was at the time auditing some companies thatincluded a few shipping firms. In 1988, Agarwal mentioned that Mumbai-based Mercator Lines Ltd was onthe block. Mittal, then also into the business of buying ship scrap,did not hesitate. He bought the firm for Rs1.2 crore from theRamchandani family.From Rs65 lakh in 1988, the firm’s revenue increased to Rs2,200 crorein the year ended 31 March. Mercator Lines today runs a fleet of 28vessels, up from three barges in the year Mittal bought the firm.The shipping line, riding high on the wave of India’s economicliberalization since the 1990s, listed on the Bombay Stock Exchange in1993 and has never missed paying a a yearly dividend to shareholders,Mittal says.The 59-year-old entrepreneur now wants to make his firm a $5 billion(around Rs23,550 crore) company, an “ambitious dream,” but notimpossible for a shipping line that reported a revenue of just Rs60crore just five years ago.From a traditional tanker company, Mercator today has a presence inbulk shipping, tanker shipping, dredging, offshore oil exploration andcoal mines.“We have already acquired four coal mines in Indonesia and one inMozambique. We are now looking for acquiring one more in Indonesia.This will enable us to offer a complete logistics package includingcoal, ship and local logistics,” says Mittal, who holds a 1973postgraduate degree in technology from the Indian Institute ofTechnology, Roorkee, then known as the University of Roorkee. A majority of new Indian power projects are eyeing imported coal, mainly from Indonesia, to run their plants.Mittal attributes his success to his management team. An analyst agrees. “Mercator Lines management was always aggressive tograb every opportunity that came before them, be it dredging, coalmines, offshore or dry bulk ships,” says Kapil Yadav, an analyst withdomestic brokerage Dolat Capital Market Pvt. Ltd. Yadav tracks thefirm’s scrip.“The business model of Mercator Lines is to diversify to severalsegments to derisk, while locking in its vessels for long-termcontracts to mitigate the volatility of freight rates,” he says.Mercator Lines has acquired four dredgers and plans to add six more toits portfolio. Indian ports continuously require dredging to keep theirshipping channels deep. State-run Dredging Corp. of India Ltd is unableto meet the entire requirements of the country’s ports. Someinternational dredging companies have set up shop in India to tap themarket potential.“We are very serious about dredging,” says Mittal. “Apart from dredging, we are also upbeat about the offshore sector.” Mercator Lines, as part of a strategy to derisk the cyclical nature ofits core shipping business, entered the offshore drilling business withthe delivery of a Rs1,000 crore jack-up rig. The rig was immediatelydeployed on a three-year contract with state-owned Oil and Natural GasCorp. Ltd through Great Eastern Shipping Co. Ltd.“We are constantly looking for other areas of offshore business,exclusive offshore support vessels. This could be anything, highspecification rigs or other areas,” Mittal says. “Mercator wascontracted two oil blocks under the seventh round of the newexploration licensing policy,” Mittal said.In December 2007, Mercator Lines listed its Singapore-based subsidiaryon the Singapore Stock Exchange and raised over Rs500 crore. Last year, shipping firms were hit by the global economic downturn thatled to a steep decline in world trade and caused freight rates to fall.“Though there are some signs of revival, I think the next two years aregoing to be tough for the shipping sector,” Mittal says. “Ourdiversification model is going to save us during this crisis.” “Though Mercator has done everything to de-risk by diversifying, as ashipping company it will be exposed to volatility since it is acyclical industry,” Dolat’s Yadav says. Mittal, however, remains optimistic. He says all the business segmentsof his firm are growing and he would continue to invest in these.“Nothing stops us from aiming at being a $5 billion company.” Source: Livemint
Rs23550CRORE????
latest at nov 18th 2009
61.90 +4.50 +7.84% 18 Nov, 15:58:43
Volume
5,202,426
Prev Close
57.40
Day's H/L (Rs)
62.90 - 57.20
52wk H/L (Rs)
76.75 - 21.00
Mkt Cap (Rs Cr)
1,460.84
1460 TO 23550????????????????15 times????????????????AHHHHH HUAT AH!!!!!!MERCATOR AT 4.50 SGD???????????????????????????????????
POINT NUMBER 2--BALTIC DRY INDEX HAS ROCKETED, broke june 09 highs--making sure that the economic recovery is intact.
FROM WIKIPEDIA--The BDI is termed a leading economic indicator because it predicts future economic activity.
Because it provides "an assessment of the price of moving the major raw materials by sea," according to The Baltic, "... it provides both a rare window into the highly opaque and diffuse shipping market and an accurate barometer of the volume of global trade -- devoid of political and other agenda concerns
FROM WIKIPEDIA--
Impact of 2008 financial crisis (on BDI)
On 20 May 2008 the index reached its record high level since its introduction in 1985, reaching 11,793 points. Half a year later, on 5 December 2008, the index had dropped by 94%, to 663 points, the lowest since 1986., though by 4 February 2009 it had recovered a little lost ground, back to 1,316. These low rates moved dangerously close to the combined operating costs of vessels, fuel, and crews.
By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the reduction of letters of credit, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for shipping companies, with several major bankruptcies and implications for shipyards.This, combined with the collapsing price of raw commodities created a perfect storm for the world's marine commerce.
YET MERCATOR IS PROFITABLE!!!!
POINT NUMBER 3--
MERCATOR IS GOING INTO COAL MINING BUSINESS IN 2010--
from wikipedia also...
Mozambique gold mine
In early 2008, the company's overseas arm, Mercator Lines Singapore Limited, was awarded a coal block in Mozambique. It turned out to be a gold mine with an estimated reserve of 3 billion tonnes of coal. Mercator owns 85% economic interest in the mine and it has a 30-year mining lease. The mining will begin in 2010, and the company will pay $1 per tonne royalty to the Government of Mozambique.
POINT NUMBER 4--STRONG CLIENT BASE--LESSER RISK OF DEFAULT!!!(source--SHARESINVESTOR)
Mercator displays prudence amid shipping slump
Sunday, August 2, 2009 at 6:00pm
Its reliable core group of customers along with prudent risk management equip Mercator Lines to weather the shipping slump. By Ridwan Abbas
It has been a rough few months for dry bulk shipping charterers as the industry grapples with a tight credit market and a slowdown in demand for commodities.
Freight rates have tumbled and the Baltic Dry Index (BDI), used as the global benchmark for the cost of shipping commodities, has plunged nearly 100 per cent since June. Vessels which were commanding US$50,000 daily as recently as September are now scraping through at US$4,000 a day rates, according to one analyst.
But Indian bulk shipper Mercator Lines is not hitting the panic button as yet, and with good reason: 73 per cent of its 11 bulk carriers are running on long-term contracts – ranging from one to five years – and have fixed prices locked in. This in turn limits its exposure to the volatile BDI used as a benchmark on the spot market.
“We know that the market can be very volatile and in 2007, we bought four ships Shalabh Mittal, chief executive officer of Mercator Lines. and were very happy that we chartered them out at US$35,000. But by the end of November, we were looking like fools as the market was US$90,000; today it looks fabulous because the market is at around US$6,000 and we’re chartering it for US$35,000,” says Shalabh Mittal, chief executive officer of Mercator Lines.
The company’s prudent risk management strategy, which includes allocating at least 70 per cent of its fleet for long-term charters at fixed rates, has been vindicated in these challenging times.
For the first half of financial year 2008 (FY08)ended September 30, the group registered a 239 per cent increase in profits to US$48 million on the back of an 84 per cent rise in revenue to US$108 million.
Strong customer base
Mercator Lines specialises in the transportation of coal into India from Australia and Indonesia, as well as iron ore from India into China, Japan and South Korea. India accounts for roughly 25 per cent of the group’s revenue, with its biggest customer being blue-chip power utility firm Tata Power. I
n June, the two companies signed a contract worth US$320 million to transport three million tonnes of coal from Indonesia to India, which will require five Panamex vessels to be deployed over four years.
Tata is the major power plant that provides energy to Mumbai and its neighbouring suburbs. Being a key customer, Tata contributed roughly 34 per cent to Mercator’s earnings for financial year 2007 to 2008.
Coal is indeed a major source of energy to the Indian economy with over 54 per cent of domestic power generation coming from coal-fired power plants, according to India’s Ministry of Coal.
Having already invested US$1.2 billion in two Indonesian mines in 2007, recent reports have suggest that Tata Power may be looking for more coal mine deals to increase its power-generating capacity.
DBS Group Research noted that India’s state and private utilities aim to almost double the nation’s generation capacity from 141,000 megawatts to 250,000 megawatts by 2017. It also added that the demand for dry bulk carriers for shipments of thermal coal into India and iron ore out of India should increase as the country’s GDP grows.
Outside India, Mercator also has a welldiversified customer base which includes North China Lines Shipping and Siba Ships of Italy along with Arcelor Mittal, the world’s largest steel producer by revenue.
“We tend to work with not only good names but also end-users type of customers. People like Tata and Arcelor, they’re all power plants or steel plants themselves and they transport iron-ore, they transport coal, they transport steel…even if their volume decreases, they still need these ships to move the cargo out,” says Mr Mittal.
Possible headwinds
The global wheels of trade are beginning to show signs of creaking as worsening market conditions mean that banks are more reluctant to issue Letters of Credit to commodity traders, which is traditionally required to load cargoes for departure at ports.
Slower economic growth for the next year or so would also affect steel production and the subsequent demand for iron ores. While recognising that demand in China and India would clearly dip, Mr Mittal still feels that the situation in these markets “would not be that bad.”
The Asian Development Bank predicted that even if growth in China and India decelerate, both economies are still expected to expand by about 9.5 and 7 per cent respectively in 2009.
Mercator may be buffered from the weak charter rates on the spot market through its fixed cost long-term contracts, but it also means that its rates are at a massive premium compared to other industry players. Hence, isn’t the company worried that its customers may renege on these contracts?
“Yes, but from our experience, we haven’t seen such a thing happen before. You don’t expect names such as Tata Power and Arecelor Mittal to come back and default on their contracts…but the risk will always hang there because the difference in the contract price and market price is dramatic,” says Mr Mittal.
Staying on strategy
Having been fairly profitable in the first six months of FY08, the company is sitting on positive cash flows and has no refinancing obligations for the next five years.
Not surprisingly, Mercator is intent on staying consistent with its strategy. Aside from allocating at least 70 per cent of its ships for long-term fixed rate charters and selecting reputable end-user type customers, Mercator’s ships are only bought against contracts already agreed upon.
“You need to have business in hand; customers in hand or you could have a ship and have nowhere to run it,” says Mr Mittal.
“In good times, it’s very easy to run ships because the demand is very high. But these are testing times so you need your customer base, people who you have a relationship with. You understand their constraints and you can come up with solutions rather than just giving a ship on hire,” he added.
In these challenging times, traditional business principles of prudent risk management and enduring relationships could not be more relevant.
Copyright © SMARTINVESTOR
Smart Investor is available at leading magazine outlets To subscribe, call 6393 9772 or e-mail http://ja-jp.facebook.com/note_redirect.php?note_id=107374509237&h=44da7a487faef5ebef76ea5ff073cb41&url=http%3A%2F%2Fwww.prosperitypersonal.sg%2Fcommunity%2Fmailto%3Acirculation%40lexicon.com.sg For feedback, e-mail: smartinvestor@lexicon.com.sg
the ABOVE research was done by YOURS TRULY---
havent the thorough research answer your questions on WHY MERCATOR?
WHY 2010?
Tuesday, November 17, 2009
THIS ARTICLE SAYS IN SHORT---FUCKING IDIOTS DONT TURN BULLISH AND ENTER, THE RALLY WILL NEVER END!!!
WHY?BECAUSE THE STOCK MARKET IS NEVER CONTROLLED BY FUCKING IDIOTS.IT IS CONTROLLED BY LIFT OPERATORS.FUCKING IDIOTS WHO ONLY WAIT FOR ECONOMY TO RECOVER THEN ENTER TO BUY WILL THEN BE MADE USE FOR SHORTING BY THE LIFT OPERATORS......
downloaded from CNBC WEBSITE
What's Kept the Rally Going? Investor Fear, Not Confidence
Published: Monday, 16 Nov 2009 3:04 PM ET
Text Size
By: Jeff CoxCNBC.com
As strange as it might seem, the eight-month-old stock rally may just keep going because so many investors still think it won't last.
Photo: Oliver Quillia for CNBC.com
A trader at the New York Stock Exchange.
Investment advisors say clients continue to view stocks with hesitancy and skepticism—a vestige of the panic that swept through the markets just a year ago. But that fear, ironically, has kept stocks from going up too far, too fast—allowing the market to move gradually higher as investors creep timidly back into stocks.
"We're seeing a lot of evidence that they're buying this rally with a lot of apprehension,"says Richard Sparks, senior analyst at Schaeffer's Investment Research in Cincinnati. "We would interpret that pessimism and apprehension in a positive way."
Jeff CoxStaff WriterCNBC.com
As major indexes continue to reach fresh highs—the crossing Monday of 1100 on the Standard & Poor's 500 marks the latest hurdle—conviction that the rally can keep going builds.
"The buying's not getting out of hand. The more controlled a rally is, the more sustainable it is," says Sparks, who expects small- and mid-cap technology to lead the market. "At least in terms of earnings and the economic numbers that are coming out, I would expect we should see a strong, steady rally to continue through at least year's end."
Market watchers are eyeing a few key milestones coming up as tests for the rest of 2009, a year that began with freefalling stocks and looks to end with a better than 60 percent rally.
This is an options expiration week, which a year ago was bad for the market and saw a sharp drop. But seven of the past 12 options expirations weeks have seen gains.
Also, technicians are looking at S&P 1120 as a key level because it represents a two-thirds rebound off the March lows when the broad-based market gauge hit an intraday low of 666.
Should the market pass both tests, that could give a boost to investors' spirits and pave the way for a solid run to close out the year.
"It is difficult to understand why 10,291 on the Dow Jones Industrial Average, which was the close on November 11, can make people feel better about stocks than 9,802, which was the close on Nov. 4," managers at Al Frank Investment Management, a value-based firm in Laguna Beach, Calif., wrote in an analysis this week.
"Seems logical that the less expensive stocks are, the more attractive they would be, but such is not always the case with fear and greed playing such a huge role in investor sentiment."
Questions over market volume persist, though, as portfolio managers continue to try to protect clients' interests and as much of the trading seems to be driven by institutional influences rather than retail investors.
The lack of volume as well as weak breadth—the measure of gainers over losers—is feeding some fear that a substantial correction looms before the market can continue its path to new highs.
"Current volume patterns are a sign of money shifting from strong hands to weak hands ..." BofA Merrill Lynch said in a research note Monday. "This condition can remain in place for weeks, if not months, causing choppy equity markets. The key message the market is signaling, in our view, is this is a maturing rally, not the early stages of one."
The firm warned that the market could see a correction that would send the S&P to 935, albeit a constructive move that would pave the way to a 1200-1325 range for 2010.
An additional worry is over dollar trends.
The US currency's sharp decline has been seen as the lynchpin of the stock market rally. But some analysts fear that the greenback is approaching a point of diminishing returns where further weakness will start to sap confidence in the market.
"Eventually the dollar's going to get to a level where it's going to be bad for the markets," says Dave Rovelli, managing director of US equity trading at Canaccord Adams.
Rovelli sees that coming should the dollar index (track the gauge here) hit 70—a steep decline considering that the level is currently just above 75. But with government officials showing no indication that strong-dollar policies are forthcoming, the currency's decline at least in some measure is virtually assured.
At least for the moment—and likely through the end of the year—there's little indication anyone is willing to stand in front of the Wall Street freight train.
"The key question at this point is whether new leadership will emerge. Will volume and breadth come to confirm this rally, or are we nearing a near-term peak here?" says Gary Flam, portfolio manager at Bel Air Investment Advisors in Los Angeles.
"At this point it's too early to say the market is topping...I'm being cautious about the market at these levels. I'm not looking to invest heavily and jump into the deep end on the risk perspective. I'm still hanging out in the shallow end."
WHY?BECAUSE THE STOCK MARKET IS NEVER CONTROLLED BY FUCKING IDIOTS.IT IS CONTROLLED BY LIFT OPERATORS.FUCKING IDIOTS WHO ONLY WAIT FOR ECONOMY TO RECOVER THEN ENTER TO BUY WILL THEN BE MADE USE FOR SHORTING BY THE LIFT OPERATORS......
downloaded from CNBC WEBSITE
What's Kept the Rally Going? Investor Fear, Not Confidence
Published: Monday, 16 Nov 2009 3:04 PM ET
Text Size
By: Jeff CoxCNBC.com
As strange as it might seem, the eight-month-old stock rally may just keep going because so many investors still think it won't last.
Photo: Oliver Quillia for CNBC.com
A trader at the New York Stock Exchange.
Investment advisors say clients continue to view stocks with hesitancy and skepticism—a vestige of the panic that swept through the markets just a year ago. But that fear, ironically, has kept stocks from going up too far, too fast—allowing the market to move gradually higher as investors creep timidly back into stocks.
"We're seeing a lot of evidence that they're buying this rally with a lot of apprehension,"says Richard Sparks, senior analyst at Schaeffer's Investment Research in Cincinnati. "We would interpret that pessimism and apprehension in a positive way."
Jeff CoxStaff WriterCNBC.com
As major indexes continue to reach fresh highs—the crossing Monday of 1100 on the Standard & Poor's 500 marks the latest hurdle—conviction that the rally can keep going builds.
"The buying's not getting out of hand. The more controlled a rally is, the more sustainable it is," says Sparks, who expects small- and mid-cap technology to lead the market. "At least in terms of earnings and the economic numbers that are coming out, I would expect we should see a strong, steady rally to continue through at least year's end."
Market watchers are eyeing a few key milestones coming up as tests for the rest of 2009, a year that began with freefalling stocks and looks to end with a better than 60 percent rally.
This is an options expiration week, which a year ago was bad for the market and saw a sharp drop. But seven of the past 12 options expirations weeks have seen gains.
Also, technicians are looking at S&P 1120 as a key level because it represents a two-thirds rebound off the March lows when the broad-based market gauge hit an intraday low of 666.
Should the market pass both tests, that could give a boost to investors' spirits and pave the way for a solid run to close out the year.
"It is difficult to understand why 10,291 on the Dow Jones Industrial Average, which was the close on November 11, can make people feel better about stocks than 9,802, which was the close on Nov. 4," managers at Al Frank Investment Management, a value-based firm in Laguna Beach, Calif., wrote in an analysis this week.
"Seems logical that the less expensive stocks are, the more attractive they would be, but such is not always the case with fear and greed playing such a huge role in investor sentiment."
Questions over market volume persist, though, as portfolio managers continue to try to protect clients' interests and as much of the trading seems to be driven by institutional influences rather than retail investors.
The lack of volume as well as weak breadth—the measure of gainers over losers—is feeding some fear that a substantial correction looms before the market can continue its path to new highs.
"Current volume patterns are a sign of money shifting from strong hands to weak hands ..." BofA Merrill Lynch said in a research note Monday. "This condition can remain in place for weeks, if not months, causing choppy equity markets. The key message the market is signaling, in our view, is this is a maturing rally, not the early stages of one."
The firm warned that the market could see a correction that would send the S&P to 935, albeit a constructive move that would pave the way to a 1200-1325 range for 2010.
An additional worry is over dollar trends.
The US currency's sharp decline has been seen as the lynchpin of the stock market rally. But some analysts fear that the greenback is approaching a point of diminishing returns where further weakness will start to sap confidence in the market.
"Eventually the dollar's going to get to a level where it's going to be bad for the markets," says Dave Rovelli, managing director of US equity trading at Canaccord Adams.
Rovelli sees that coming should the dollar index (track the gauge here) hit 70—a steep decline considering that the level is currently just above 75. But with government officials showing no indication that strong-dollar policies are forthcoming, the currency's decline at least in some measure is virtually assured.
At least for the moment—and likely through the end of the year—there's little indication anyone is willing to stand in front of the Wall Street freight train.
"The key question at this point is whether new leadership will emerge. Will volume and breadth come to confirm this rally, or are we nearing a near-term peak here?" says Gary Flam, portfolio manager at Bel Air Investment Advisors in Los Angeles.
"At this point it's too early to say the market is topping...I'm being cautious about the market at these levels. I'm not looking to invest heavily and jump into the deep end on the risk perspective. I'm still hanging out in the shallow end."
Monday, November 16, 2009
Saturday, November 14, 2009
Thursday, November 12, 2009
technicals once again rule!!!
let us see how asia react tomorrow morning...
this is the start of a young bull market..only 7 months old..
average bull market lasts for 43 months,some longer ,some shorter
make full use of this ten year once nonsense--u miss it, u will be ten years older by the next crisis
Tuesday, November 10, 2009
march 12th 2009--dow rose 3.5percent, mercator rose on march 13th 2009--8.6PERCENT,1c
april 29th, dow rose 2.1percent,mercator rose on april 30th 2cents--13.8percent!!
july 15th,dow rose 3percent,mercator rose on july 14th 4.5cent--16percent
sept 3, dow rose 0.7percent, mercator rose on sept 3rd--2.5c--7.5percent
OCT5TH, dow rose 1.2percent,mercator rose on oct 6th-1.7percent
tomorrow---NOV 10th, 2009--mercator should test minimum 32
IF BREAK OUT 32c, THE RESISTANCE OF THE TRIANGLE,SUCCESSFULLY ON HEAVY VOLUME--MIN TARGET THE HEIGHT OF THE TRIANGLE--20C!!!!!add to 44.5c highest---
64.5C TARGET!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
april 29th, dow rose 2.1percent,mercator rose on april 30th 2cents--13.8percent!!
july 15th,dow rose 3percent,mercator rose on july 14th 4.5cent--16percent
sept 3, dow rose 0.7percent, mercator rose on sept 3rd--2.5c--7.5percent
OCT5TH, dow rose 1.2percent,mercator rose on oct 6th-1.7percent
tomorrow---NOV 10th, 2009--mercator should test minimum 32
IF BREAK OUT 32c, THE RESISTANCE OF THE TRIANGLE,SUCCESSFULLY ON HEAVY VOLUME--MIN TARGET THE HEIGHT OF THE TRIANGLE--20C!!!!!add to 44.5c highest---
64.5C TARGET!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Monday, November 9, 2009
As yangzijiang will be the 4th time testing 1.07, high chance of breaking it--
next tgt 1.30 fibonnacci
MERCATOR will be definitely be in the chase as it is the BEST shipping stock in performance on the rebound on march 12th, apr 29th, july13th, sept2nd, oct 5th.
32.5c will definitely break and next should be with yang to test 38c
NOL will be still the lousiest of the three.....
I REGRETTED NOT DISCOVERING THIS EARLIER
next tgt 1.30 fibonnacci
MERCATOR will be definitely be in the chase as it is the BEST shipping stock in performance on the rebound on march 12th, apr 29th, july13th, sept2nd, oct 5th.
32.5c will definitely break and next should be with yang to test 38c
NOL will be still the lousiest of the three.....
I REGRETTED NOT DISCOVERING THIS EARLIER
surprisingly, YANGZIJIANG TOO...........!!!!!!!!!!!
mar 12th 2009
yzj from 36c, march 12th to highest april 16th 54.5c--gain of 51.3percent
April 28th 2009
YZJ from april 28th, lowest 43c to highest june 4th 2009, 87.5c--gain of 103.5percent
July13th 2009
YZJ from july 13th lowest 73.5c to aug 27th 2009 highest 1.05--gain of 42.85percent
sept 2nd 2009
YZJ from sept 2nd lowest 96.5 to sept 10th 2009 1.07--gain of 10.89percent
oct 5th 2009
YZJ from oct 5th lowest 91c to oct 15th 2009, 1.07--gain of 17.59percent
I UNRAVEL THE MYSTERY OF THE STOCKMARKET AND I FOUND OUT THAT BOTH NOL AND MERCATOR LIFT OPERATORS ARE THE SAME GROUP
mARCH12TH,2009--BOTH HIT BOTTOM and surge up
NOL--march 12th to april 14th,2009--LOWEST--76.8c to 1.463,gain of 90.5percent
MERCATOR--march 12th to april 16th 2009--lowest 11.5c to highest 17.5c, gain of 52.2percent
verdict:NOL WINS
APRIL 29TH,2009--both hit bottom and surge up--
NOL--april 29th to june 3rd 2009--lowest--1.02 to 1.644 highest,gain of 61.2percent
Mercator--april 6th to june 2nd 2009--lowest--13c to 44.5c highest,WHOPPING gain of 242.3percent
verdict:NOL KENA THRASHED,mercator CLEARLY WINS
JULY 13TH,2009-both hit bottom and surge up--
NOL--july 13th to august 4th RANGE: lowest 1.36 to 1.82 highest:gain--33.9percent
mercator--july 13th to july 27th RANGE:26c lowest to 39.5c highest:gain--51.9percent
verdict--MERCATOR wins again
SEPT 2ND, 2009--BOTH HIT BOTTOM AND WENT UP:
NOL-- sept 2, to sept 9th Range: lowest 1.60 to 1.98 highest, gain--23.75percent
mercator--sept 2nd to sept 4th RANGE: lowest--32.5c to highest 37.5c--gain: 15.4 percent
verdict: NOL wins
oct 5th, 2009--both hit bottom and surge up
NOL--oct5th to oct 15th:Range--lowest 1.61 to highest 1.81 gain--12.4 percent
mercator--oct 5th to oct 20th:range--lowest 29c to highest 34.5c,gain--19percent
verdict:MERCATOR wins
ALTHOUGH THE FORMATIONS ARE DIFFERENT BUT THE DAY BOTH HIT TRENDLINES SURE TO REBOUND FROM THE BOTTOM OF THE TRENDLINE OF THE FORMATIONS...
BOTH HIT ON NOV 5TH,2009,although NOL is slightly higher, about 1c away,0.07percent away from the trendline,BUT IT IS ROUGHLY AT THAT POINT
VERDICT--due to stronger balancesheet for MERCATOR than NOL--mercator wins NOL 3-2, BUT THE MARGINS OF VICTORY clearly surpasses NOL
WATCH FOR THE STRONG REBOUND UP FOR BOTH COMPANIES AT THE SAME TIME---
IT IS COMING VERY SOON..
words said on nov 8th sunday, 2009
YOURS SINCERELY
SHARESWIZARD
Friday, November 6, 2009
Monday, November 2, 2009
MONDAYS COMMENT--FUCK THE US MANIPULATORS STINGY SMALL COCK BASTARDS...
everything i predict so acccurate even the drop to fridays lows, but i told myself, THE SMALL COCK BASTARDS CANT BE SO STINGY THAT EVEN A 0.6% GAP ALSO MUST REACH THERE?they are really THAT STINGY..
FUCK THEM A MILLION TIMES.over.
everything i predict so acccurate even the drop to fridays lows, but i told myself, THE SMALL COCK BASTARDS CANT BE SO STINGY THAT EVEN A 0.6% GAP ALSO MUST REACH THERE?they are really THAT STINGY..
FUCK THEM A MILLION TIMES.over.
Sunday, November 1, 2009
Saturday, October 31, 2009
Friday, October 30, 2009
Thursday, October 29, 2009
HIGHLY RECOMMENDED!!!
plus STI 2.6K i have been aiming for weeks--THIS TIME STI WILL BE TESTING 2.7k FOR THE 4TH TIME WAVE COUNT, AND WILL SMASH IT BY NEXT WEEK!!
CATALYST--FOMC
I HAVE LOADED VERY HEAVILY FOR THIS FIERCE MOVE UPWARDS, i bought 400 lots of HSI CW mbl ecw 091126 AT AVE PX 26C, if tonite US rocket up 2pc, i will add another 200 lots tomorrow morning.OVER. ITS TIME TO WHACK 50K SGD PROFIT!!!i have been waiting for this chance patiently and for weeks!!!!!!!!!!!!!!!!!!!!!!!!!!
WEEKS WITHOUT INCOME!!!!!!!!!!
WHACK THE BLOODY 2.7K
DATED 29TH OCTOBER 2009
Wednesday, October 28, 2009
These Shipping Stocks Have Room to Run: Maritime Expert
Published: Tuesday, 27 Oct 2009 12:58 PM ET
Text Size
By: JeeYeon ParkCNBC News Associate
The Baltic Dry Index, a leading economic indicator used by market insiders to gauge gloobal demand for goods, is up 300 percent, quadrupling in value. Does it have more room to run and what does it say about the overall economy? Doug Mavrinac, head of maritime research at Jeffries, shared his insights.
“The index is a relatively good predictor and indicator of where the economy is,” Mavrinac told CNBC.
“Based on where rates are today, it’s not oversupplied and the increase that we’ve seen today is primarily due to the Chinese importing record levels of iron ore and of coal. So it’s fairly indicative of what’s going on globally.”
Mavrinac said the dry bulk shipping stocks still have more room to run.
“It’s important to make the distinction between the container shipping companies and the dry-bulk shipping companies,” he said.
“The container shipping industry is one where it is plagued by overcapacity…But in the dry-bulk shipping market, it’s a much different market.”
Recommendations:
Mavrinac is “overweight” the Dry Bulk Shipping sector and has a “buy” rating on Diana Shipping
cnbc_comboQuoteMove('popup_DSX_ID0EIGAC15839609');
[DSX 13.68 -0.24 (-1.72%) ]
cnbc_quoteComponent_init_getData("DSX","WSODQ_COMPONENT_DSX_ID0EIGAC15839609","WSODQ","true","ID0EIGAC15839609","off","false","inLineQuote");
, Genco Shipping
cnbc_comboQuoteMove('popup_GNK_ID0EPLAC15839609');
[GNK 20.76 -1.20 (-5.46%) ]
cnbc_quoteComponent_init_getData("GNK","WSODQ_COMPONENT_GNK_ID0EPLAC15839609","WSODQ","true","ID0EPLAC15839609","off","false","inLineQuote");
, and a “hold” rating on Dryships
cnbc_comboQuoteMove('popup_DRYS_ID0EZAAE15839609');
[DRYS 6.37 -0.52 (-7.55%) ]
cnbc_quoteComponent_init_getData("DRYS","WSODQ_COMPONENT_DRYS_ID0EZAAE15839609","WSODQ","true","ID0EZAAE15839609","off","false","inLineQuote");
Published: Tuesday, 27 Oct 2009 12:58 PM ET
Text Size
By: JeeYeon ParkCNBC News Associate
The Baltic Dry Index, a leading economic indicator used by market insiders to gauge gloobal demand for goods, is up 300 percent, quadrupling in value. Does it have more room to run and what does it say about the overall economy? Doug Mavrinac, head of maritime research at Jeffries, shared his insights.
“The index is a relatively good predictor and indicator of where the economy is,” Mavrinac told CNBC.
“Based on where rates are today, it’s not oversupplied and the increase that we’ve seen today is primarily due to the Chinese importing record levels of iron ore and of coal. So it’s fairly indicative of what’s going on globally.”
Mavrinac said the dry bulk shipping stocks still have more room to run.
“It’s important to make the distinction between the container shipping companies and the dry-bulk shipping companies,” he said.
“The container shipping industry is one where it is plagued by overcapacity…But in the dry-bulk shipping market, it’s a much different market.”
Recommendations:
Mavrinac is “overweight” the Dry Bulk Shipping sector and has a “buy” rating on Diana Shipping
cnbc_comboQuoteMove('popup_DSX_ID0EIGAC15839609');
[DSX 13.68 -0.24 (-1.72%) ]
cnbc_quoteComponent_init_getData("DSX","WSODQ_COMPONENT_DSX_ID0EIGAC15839609","WSODQ","true","ID0EIGAC15839609","off","false","inLineQuote");
, Genco Shipping
cnbc_comboQuoteMove('popup_GNK_ID0EPLAC15839609');
[GNK 20.76 -1.20 (-5.46%) ]
cnbc_quoteComponent_init_getData("GNK","WSODQ_COMPONENT_GNK_ID0EPLAC15839609","WSODQ","true","ID0EPLAC15839609","off","false","inLineQuote");
, and a “hold” rating on Dryships
cnbc_comboQuoteMove('popup_DRYS_ID0EZAAE15839609');
[DRYS 6.37 -0.52 (-7.55%) ]
cnbc_quoteComponent_init_getData("DRYS","WSODQ_COMPONENT_DRYS_ID0EZAAE15839609","WSODQ","true","ID0EZAAE15839609","off","false","inLineQuote");
Monday, October 26, 2009
a recap--those who know me before march 2009 will probably have received my messages.mar 18th 2009 was the day i invented ZACK's theory of stockmarket manipulation in a downtrend to identify the market's final bottom.i keep my sms as proof so that those who do not know me then and doubt me, i will show it to you in person.thanks all.
i wonder why the analysts keep on saying that 2700 is safe entry, why not 1455????OR 1500s??
WHY AT THAT TIME NO ONE IS SO BULLISH OTHER THAN ME?
that is because i saw THE SAME TREND IN ALL DOWN TRENDS, namely 1998, 2001, 2003 and now.
THANKS FOR YOUR SUPPORT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
i wonder why the analysts keep on saying that 2700 is safe entry, why not 1455????OR 1500s??
WHY AT THAT TIME NO ONE IS SO BULLISH OTHER THAN ME?
that is because i saw THE SAME TREND IN ALL DOWN TRENDS, namely 1998, 2001, 2003 and now.
THANKS FOR YOUR SUPPORT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Sunday, October 25, 2009
Saturday, October 24, 2009
YESTERDAY DROP WAS EXPECTED..it drop out of the diagonal uptrend line but should maintain in that range to 10100--the base of the inverse h and S should provide enough support.IF IM NOT WRONG, THE US FUTURES ON MONDAY SHOULD BE UP.IF US FUTURES ARE DOWN, IT WILL BE THE USUAL TRICK, US MKT SHOULD OPEN LOWER THEN GO ALL THE WAY UP.
YOURS SINCERELY
Friday, October 23, 2009
Tuesday, October 20, 2009
my darling PINPOINT HEDGE FUND NEWS IN THE MEDIA:
Sept 2009
2 Pinpoint Funds Nominated for 8th AsiaHedge Annual Awards
September 24, 2009
We are pleased to announce that Pinpoint China Fund and Pinpoint Asia Strategies Fund have been nominated for this year’s AsiaHedge awards.
Pinpoint China Fund was nominated in the category of best “China” fund, and Pinpoint Asia Strategies Fund was nominated in the category of best “Multi Strategy” fund. Awards results will be announced on 22nd October in Hong Kong.
While the awards’ nominee and winner selection methodology* is one of many ways to assess hedge fund quality, we appreciate the acknowledgement by AsiaHedge Awards of our funds’ performance over the last year which included some very difficult times. The Pinpoint team are proud of such achievements and continue to do our best to build upon them. We are also very grateful for the continuing support from all our investors.
* - Winners are decided using an established methodology based upon a combination of Sharpe Ratios and returns over the relevant time period. Nominations are decided by those funds that achieve the strongest Sharpe Ratios over the 12 months prior to the event (from October 2008 through the end of September 2009), so long as they also beat the median returns in their relevant peer groups. The eventual winners will be funds which achieve the best returns, as long as they also achieve Sharpe Ratios within 25% of the best of the nominees. All funds wishing to be considered must also have a reputable, independendent third party administrator.
AUG 2009
Pinpoint Funds Beat Peers With China Stocks, Bonds (Update1)
Share Email Print A A A
By Bei Hu
Aug. 25 (Bloomberg) -- Pinpoint Investment Advisor Ltd., a hedge fund manager of $560 million, returned as much as four times its Asian peers this year through July with profits from a rebound in Chinese stocks and debt securities.
The $70 million Pinpoint Opportunities Fund, which gained 85 percent in the period, invested about half its assets in convertible and high-yield bonds, including those of Chinese property developers, said Duanmu Yongshan, Pinpoint’s Hong Kong- based chief marketing officer. The $300 million Pinpoint China Fund returned nearly 51 percent in the period, he said.
Stock-focused hedge funds, the hardest hit in Asia amid last year’s market slump, are leading the recovery in 2009. The Eurekahedge Asia Long/Short Equities Hedge Fund Index returned 19 percent this year through July, the best-performing strategy among eight tracked by the Singapore-based data provider. The index fell 22 in 2008, the worst since at least 2000.
“We think fundamentals will play an increasingly more important role relative to liquidity for the second half,” said Duanmu in an interview on Aug. 24.
The China Fund, which targets companies with a market value of more than $2 billion in Greater China, bet on a recovery in Chinese property and banking stocks it bought, he said. He declined to name specific companies.
Falling Volatility
The Hang Seng China Enterprises Index, which tracks 43 Chinese companies listed in Hong Kong, rose 48 percent this year after losing 51 percent of its value last year.
The funds’ gains this year showed “the fundamentals-drive approach is still richly rewarded by the market when it is not in a panic mode,” said Duanmu.
The 100-day price volatility of the Hang Seng China Enterprises Index more than halved after reaching its highest in at least nine years in January, Bloomberg data show.
Pinpoint China Fund, led by the company’s Chief Investment Officer Wang Qiang and Huang Yong, lost 35 percent of its net asset value last year, the first annual loss since its June 2005 birth. The Opportunities Fund, started in August 2007 and overseen by Huang and Rubin Jiang, declined 43 percent in 2008, according to investor newsletters. The fund focuses on small- and medium-sized Greater China companies.
“Fundamental-driven research is always relevant, but last year showed people that you cannot rely on fundamentals alone,” said Simon Potter, a Hong Kong-based investment analyst with Triple A Partners Ltd., which provides startup capital and marketing services to hedge funds.
Property, Banking
The China Fund achieved the gains this year with about 50 percent net exposure -- the difference between the amount that funds wager on rising and falling stocks -- said Duanmu. More than half of the fund’s return in the first half was driven by investments in the Chinese property, banking and internet gaming industries, he added.
Pinpoint from November through the first quarter ramped up investments in Chinese property companies, which had been battered last year by the global market rout as well as increased domestic taxes and interest rates to curb overheating in the industry.
“We felt the industry was seriously undervalued,” said Duanmu. “We live in China and could follow regional situation and statistics more closely. We beat the market to it.”
Hong Kong-quoted shares of Sino-Ocean Land Holdings Ltd., Beijing’s largest developer, more than doubled this year after slumping 64 percent in 2008. Shares of Agile Property Holdings Ltd., a Guangzhou-based builder listed in Hong Kong, surged 138 percent this year.
Bonds
The funds started to build up investments in Chinese banking stocks in the first quarter as de-leveraging and market panic forced other investors to sell, Duanmu said. They also brought shares in Chinese internet gaming companies, betting on increasing popularity of their products and services, he said.
Convertible and other bonds accounted for 63 percent of the Opportunities Fund’s investments and 68 percent of profits in the month of June, according to a Pinpoint investor newsletter. The fund had no bond holdings before October 2008, Duanmu said. About half of its convertible bond holdings were issued by Chinese property developers, he added.
JPMorgan’s Asia non-investment grade credit index gained 33 percent this year after last year’s 18 percent decline.
The rally prompted Pinpoint to free investors in the Opportunities Fund from July 1 from a two-year lockup of their investments introduced at the beginning of the year. It also reopened the Opportunities Fund to new investors.
Both funds sold borrowed shares of Chinese building materials makers, such as producers of cement, believing they’re overvalued with an unattractive business model under pressure from increasing competition, Duanmu said.
Pinpoint trimmed its banking and property-related investments in the second quarter after their recent rallies and instead increased investments in consumption-related industries less affected by overall market moves. It also swapped some of its stock holdings for bonds issued by the same companies to protect itself from an equity market correction, Duanmu added.
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net Last Updated: August 25, 2009 00:01 EDT
May 2009
Rising China Fund ranked Top 1 by Eurekahedge in 2008
Rising China Fund has been ranked 1st place by Eurekahedge among commodity funds with the yearly net return +70.85%; annualized return +66.80%; andsharpe ratio +2.02 .
Data source: Eurekahedge, Asian hedge fund database as of Jan 30, 2009
April 2009
Pinpoint China Fund Joins Credit Suisse/Tremont Hedge Fund Index
We are pleased to announce that Pinpoint China Fund has been selected to become a constituent fund in the Credit Suisse/Tremont Hedge Fund Index effective April 2009.
Pinpoint China Fund became the second Pinpoint-managed hedge fund, after our Rising China Fund, to be included in this widely recognized industry index. Rigorous reporting standards are required of index member funds, including monthly performance disclosure and audited financial statements.
In addition to being a member of the main hedge fund index, Pinpoint China Fund is also a member of the Credit Suisse/Tremont LEA Index and the Credit Suisse/Tremont LEA Asia Index. Rising China Fund is also a member of the Credit Suisse/Tremont Emerging Markets Index.
This event highlights again the leading position of Pinpoint China Fund among Greater China-focused hedge funds. It also represents another industry recognition of Pinpoint’s sound business practices and success.
HISTORY OF PINPOINT
PinPoint 是一家为高端客户提供一系列选择性（包括Equity 和Commodity）投资产品的优秀资产管理机构。 公司的投资理念是：我们认为金融市场，特别是亚洲市场不是完全有效的。因此我们可以通过深入的研究和合理的分析取得超值回报。我们崇尚价值投资，注重对被投资公司或商品的基本面分析。公司致力于与广大国际投资者一起分享价值投资的成功喜悦。 我们拥有二十六位专业人员来负责投资组合管理、研究、交易、风险管理及运营。我们的专业人员都在中国或海外（如美国、英国、加拿大等）高等学府受过良好的教育，并且在金融领域拥有丰富的国内和国际实践经验。我们的团队对大中华地区的证券市场和全球商品有着深刻的理解。通过深入的研究和分析，Pinpoint 将致力于打造一个业内排名位于前列，具有出色资产管理能力的资产管理机构。 Pinpoint 旗下管理着四支开放式对冲基金—— PINPOINT CHINA FUND, PINPOINT OPPORTUNITIES FUND, RISING CHINA FUND和PINPOINT ASIA STRATEGIES FUND。PINPOINT CHINA FUND于2005年开始运作。主要投资大中华地区具有高成长性、高内在价值的大市值上市公司。2006年，PINPOINT CHINA FUND获得了年度亚洲对冲基金“单一国家”最佳基金奖。2007年再次入围该奖项提名。PINPOINT OPPORTUNITIES FUND于2007年8月开始运作，也主要投资于大中华区的上市公司，更加关注有高成长潜力的中小型公司。RISING CHINA FUND于2007年7月正式运作， 这支对冲基金主要以供需关系变化的研究来投资于商品期货。 2008年，RISING CHINA FUND入围AsiaHedge最佳年度新基金奖提名。PINPOINT ASIA STRATEGIES FUND于2008年3月正式运作，是一支多策略对冲基金，主要投资于亚洲（除日本）的股票市场，商品期货，及货币和债券等 此外，Pinpoint 还管理着一支私有股权投资基金—— PINPOINT CHINA DIRECT INVESTMENT FUND。
Price setters give Pinpoint edge
24/05/2006
Sunny Li's bets on rice liquor and tourism to China's fabled Yellow Mountain have produced a 48 percent return this year, making his US$50 million (HK$390 million) hedge fund the best performer of those that invest in the country.
Li's Pinpoint China Fund outpaced rivals and the nation's stock indexes by focusing on companies with near monopolies and brands that allow them to control prices - and by calling once a week to ensure they stayed that way.
That's important in a country where overinvestment has led to a glut of some products, trapping companies in a cycle of price-cutting, he said.
"The flip side of China's cheap goods is that it's hard for companies to turn market dominance into returns for shareholders," said Li at his office in Hong Kong. "Cutthroat competition among companies means we have to make sure the financial landscape of those we invest in doesn't change."
Finding a winning formula to picking shares is especially important in China, where only about 5 percent of the more than 1,400 stocks have gained over the past five years. Mainland shares listed in Hong Kong, where Li also invests, have done better over the same period. All but three of the 38 so- called H shares in the Hang Seng China Enterprises Index have risen.
While this year's 43 percent rally by the Shanghai Composite Index has made it easier to find performers, the mainland market may fail to hold its gains if history is any guide. The Shanghai Composite has surged 580 points since December 5. The last rally of that size preceded a 14-month, 40 percent rout that ended in July last year. The index is 26 percent below its 2001 peak.
The Shanghai-based Pinpoint China Fund, owned by Pinpoint Asset Management, was ranked the top China hedge fund at the end of last month, said Eurekahedge, a Singapore-based hedge fund research company. It's followed by Dynasty China Mainland Fund, managed by Dynasty Management in Shanghai, and Martin Currie China Hedge Fund, run by Edinburgh-based Martin Currie Investment Management.
"The risks of investing into China's stock market haven't changed much," said Liu Feng, an executive director at Shenzhen-based Century Securities.
"They include financial frauds and regulatory uncertainty. You have to be either local or very familiar with the companies, their products and brands to ensure your investment will pay off."
Li is one of a new generation of former equity brokers who are taking advantage of the growth in hedge funds in China. The amount of money managed by funds located both inside and outside the mainland has grown more than eightfold in the past five years to about US$1.5 billion. The amount is 1.9 percent of the US$80 billion held by Asia Pacific hedge funds.
The Pinpoint fund has more than doubled its return on an investment last June in Huangshan Tourism Development, which has a stranglehold on tourism to the famous mountain in the company's base in Anhui province.
In February, Pinpoint bought Kweichow Moutai, a mainland maker of rice liquor. Shares in the Renhuai, Guizhou- based company, which had advanced 5.8 percent in the previous six months, have almost doubled since the purchase.
Yunnan Baiyao Group has almost doubled since Pinpoint's investment this year. Li said the fund may buy more shares in the Kunming, Yunnan-based company because of its dominant share of the niche market in baiyou, a traditional white powder used to treat wounds.
To hedge against the risk of the A-share market collapsing, Pinpoint is shorting Barclays' iShares Asia Trust Index, a Hong Kong exchange-traded fund that tracks the performance of 50 large-capitalization stocks listed in China. Short selling of yuan-denominated A shares is illegal.
Unlike mutual funds, hedge funds can short sell stocks or use derivatives to improve performance.
In a short trade, investors sell a borrowed security, betting the price will fall and they can buy it back, pocketing the difference. Derivatives such as futures contracts are based on an underlying product, like copper.
Last year, the Shanghai benchmark fell 8.3 percent. Hedge funds that invest in Greater China, which takes in Taiwan and Hong Kong, gained on average 7.2 percent, according to Eurekahedge.
The Pinpoint fund also shorted Hopewell Holdings, which runs one of the busiest toll roads in southern China, after buying shares in toll-road operator Shenzhen Expressway in early March. Shenzhen Expressway has returned 43 percent, while Hopewell Holdings has gained 10 percent this year.
The Shanghai-based fund shunned auto stocks such as Denway Motors, which makes cars in China with Honda Motor, and Brilliance China Automotive Holdings - Bayerische Motoren Werke's partner - as rising competition forced them to cut prices even as sales of vehicles rose.
Pinpoint hasn't always been right. The fund began short selling copper when prices on the London Metal Exchange reached about US$4,800 a metric ton, Li said. Once the contract advanced to about US$6,500 he cut his losses. The metal reached a record US$8,600 a ton on May 11.
Hedge funds investing in the Greater China region returned 24 percent this year through the end of April, three times the average gains for Asia as a whole, according to Eurekahedge.
"We think the China domestic market has just started its bull turn even though it has rallied over 40 percent since the beginning of the year," Li said.
Reforms to convert state-owned shares into tradable stock "will make it one of the most interesting and rewarding markets in the next 10 years." BLOOMBERG
Sept 2009
2 Pinpoint Funds Nominated for 8th AsiaHedge Annual Awards
September 24, 2009
We are pleased to announce that Pinpoint China Fund and Pinpoint Asia Strategies Fund have been nominated for this year’s AsiaHedge awards.
Pinpoint China Fund was nominated in the category of best “China” fund, and Pinpoint Asia Strategies Fund was nominated in the category of best “Multi Strategy” fund. Awards results will be announced on 22nd October in Hong Kong.
While the awards’ nominee and winner selection methodology* is one of many ways to assess hedge fund quality, we appreciate the acknowledgement by AsiaHedge Awards of our funds’ performance over the last year which included some very difficult times. The Pinpoint team are proud of such achievements and continue to do our best to build upon them. We are also very grateful for the continuing support from all our investors.
* - Winners are decided using an established methodology based upon a combination of Sharpe Ratios and returns over the relevant time period. Nominations are decided by those funds that achieve the strongest Sharpe Ratios over the 12 months prior to the event (from October 2008 through the end of September 2009), so long as they also beat the median returns in their relevant peer groups. The eventual winners will be funds which achieve the best returns, as long as they also achieve Sharpe Ratios within 25% of the best of the nominees. All funds wishing to be considered must also have a reputable, independendent third party administrator.
AUG 2009
Pinpoint Funds Beat Peers With China Stocks, Bonds (Update1)
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By Bei Hu
Aug. 25 (Bloomberg) -- Pinpoint Investment Advisor Ltd., a hedge fund manager of $560 million, returned as much as four times its Asian peers this year through July with profits from a rebound in Chinese stocks and debt securities.
The $70 million Pinpoint Opportunities Fund, which gained 85 percent in the period, invested about half its assets in convertible and high-yield bonds, including those of Chinese property developers, said Duanmu Yongshan, Pinpoint’s Hong Kong- based chief marketing officer. The $300 million Pinpoint China Fund returned nearly 51 percent in the period, he said.
Stock-focused hedge funds, the hardest hit in Asia amid last year’s market slump, are leading the recovery in 2009. The Eurekahedge Asia Long/Short Equities Hedge Fund Index returned 19 percent this year through July, the best-performing strategy among eight tracked by the Singapore-based data provider. The index fell 22 in 2008, the worst since at least 2000.
“We think fundamentals will play an increasingly more important role relative to liquidity for the second half,” said Duanmu in an interview on Aug. 24.
The China Fund, which targets companies with a market value of more than $2 billion in Greater China, bet on a recovery in Chinese property and banking stocks it bought, he said. He declined to name specific companies.
Falling Volatility
The Hang Seng China Enterprises Index, which tracks 43 Chinese companies listed in Hong Kong, rose 48 percent this year after losing 51 percent of its value last year.
The funds’ gains this year showed “the fundamentals-drive approach is still richly rewarded by the market when it is not in a panic mode,” said Duanmu.
The 100-day price volatility of the Hang Seng China Enterprises Index more than halved after reaching its highest in at least nine years in January, Bloomberg data show.
Pinpoint China Fund, led by the company’s Chief Investment Officer Wang Qiang and Huang Yong, lost 35 percent of its net asset value last year, the first annual loss since its June 2005 birth. The Opportunities Fund, started in August 2007 and overseen by Huang and Rubin Jiang, declined 43 percent in 2008, according to investor newsletters. The fund focuses on small- and medium-sized Greater China companies.
“Fundamental-driven research is always relevant, but last year showed people that you cannot rely on fundamentals alone,” said Simon Potter, a Hong Kong-based investment analyst with Triple A Partners Ltd., which provides startup capital and marketing services to hedge funds.
Property, Banking
The China Fund achieved the gains this year with about 50 percent net exposure -- the difference between the amount that funds wager on rising and falling stocks -- said Duanmu. More than half of the fund’s return in the first half was driven by investments in the Chinese property, banking and internet gaming industries, he added.
Pinpoint from November through the first quarter ramped up investments in Chinese property companies, which had been battered last year by the global market rout as well as increased domestic taxes and interest rates to curb overheating in the industry.
“We felt the industry was seriously undervalued,” said Duanmu. “We live in China and could follow regional situation and statistics more closely. We beat the market to it.”
Hong Kong-quoted shares of Sino-Ocean Land Holdings Ltd., Beijing’s largest developer, more than doubled this year after slumping 64 percent in 2008. Shares of Agile Property Holdings Ltd., a Guangzhou-based builder listed in Hong Kong, surged 138 percent this year.
Bonds
The funds started to build up investments in Chinese banking stocks in the first quarter as de-leveraging and market panic forced other investors to sell, Duanmu said. They also brought shares in Chinese internet gaming companies, betting on increasing popularity of their products and services, he said.
Convertible and other bonds accounted for 63 percent of the Opportunities Fund’s investments and 68 percent of profits in the month of June, according to a Pinpoint investor newsletter. The fund had no bond holdings before October 2008, Duanmu said. About half of its convertible bond holdings were issued by Chinese property developers, he added.
JPMorgan’s Asia non-investment grade credit index gained 33 percent this year after last year’s 18 percent decline.
The rally prompted Pinpoint to free investors in the Opportunities Fund from July 1 from a two-year lockup of their investments introduced at the beginning of the year. It also reopened the Opportunities Fund to new investors.
Both funds sold borrowed shares of Chinese building materials makers, such as producers of cement, believing they’re overvalued with an unattractive business model under pressure from increasing competition, Duanmu said.
Pinpoint trimmed its banking and property-related investments in the second quarter after their recent rallies and instead increased investments in consumption-related industries less affected by overall market moves. It also swapped some of its stock holdings for bonds issued by the same companies to protect itself from an equity market correction, Duanmu added.
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net Last Updated: August 25, 2009 00:01 EDT
May 2009
Rising China Fund ranked Top 1 by Eurekahedge in 2008
Rising China Fund has been ranked 1st place by Eurekahedge among commodity funds with the yearly net return +70.85%; annualized return +66.80%; andsharpe ratio +2.02 .
Data source: Eurekahedge, Asian hedge fund database as of Jan 30, 2009
April 2009
Pinpoint China Fund Joins Credit Suisse/Tremont Hedge Fund Index
We are pleased to announce that Pinpoint China Fund has been selected to become a constituent fund in the Credit Suisse/Tremont Hedge Fund Index effective April 2009.
Pinpoint China Fund became the second Pinpoint-managed hedge fund, after our Rising China Fund, to be included in this widely recognized industry index. Rigorous reporting standards are required of index member funds, including monthly performance disclosure and audited financial statements.
In addition to being a member of the main hedge fund index, Pinpoint China Fund is also a member of the Credit Suisse/Tremont LEA Index and the Credit Suisse/Tremont LEA Asia Index. Rising China Fund is also a member of the Credit Suisse/Tremont Emerging Markets Index.
This event highlights again the leading position of Pinpoint China Fund among Greater China-focused hedge funds. It also represents another industry recognition of Pinpoint’s sound business practices and success.
HISTORY OF PINPOINT
PinPoint 是一家为高端客户提供一系列选择性（包括Equity 和Commodity）投资产品的优秀资产管理机构。 公司的投资理念是：我们认为金融市场，特别是亚洲市场不是完全有效的。因此我们可以通过深入的研究和合理的分析取得超值回报。我们崇尚价值投资，注重对被投资公司或商品的基本面分析。公司致力于与广大国际投资者一起分享价值投资的成功喜悦。 我们拥有二十六位专业人员来负责投资组合管理、研究、交易、风险管理及运营。我们的专业人员都在中国或海外（如美国、英国、加拿大等）高等学府受过良好的教育，并且在金融领域拥有丰富的国内和国际实践经验。我们的团队对大中华地区的证券市场和全球商品有着深刻的理解。通过深入的研究和分析，Pinpoint 将致力于打造一个业内排名位于前列，具有出色资产管理能力的资产管理机构。 Pinpoint 旗下管理着四支开放式对冲基金—— PINPOINT CHINA FUND, PINPOINT OPPORTUNITIES FUND, RISING CHINA FUND和PINPOINT ASIA STRATEGIES FUND。PINPOINT CHINA FUND于2005年开始运作。主要投资大中华地区具有高成长性、高内在价值的大市值上市公司。2006年，PINPOINT CHINA FUND获得了年度亚洲对冲基金“单一国家”最佳基金奖。2007年再次入围该奖项提名。PINPOINT OPPORTUNITIES FUND于2007年8月开始运作，也主要投资于大中华区的上市公司，更加关注有高成长潜力的中小型公司。RISING CHINA FUND于2007年7月正式运作， 这支对冲基金主要以供需关系变化的研究来投资于商品期货。 2008年，RISING CHINA FUND入围AsiaHedge最佳年度新基金奖提名。PINPOINT ASIA STRATEGIES FUND于2008年3月正式运作，是一支多策略对冲基金，主要投资于亚洲（除日本）的股票市场，商品期货，及货币和债券等 此外，Pinpoint 还管理着一支私有股权投资基金—— PINPOINT CHINA DIRECT INVESTMENT FUND。
Price setters give Pinpoint edge
24/05/2006
Sunny Li's bets on rice liquor and tourism to China's fabled Yellow Mountain have produced a 48 percent return this year, making his US$50 million (HK$390 million) hedge fund the best performer of those that invest in the country.
Li's Pinpoint China Fund outpaced rivals and the nation's stock indexes by focusing on companies with near monopolies and brands that allow them to control prices - and by calling once a week to ensure they stayed that way.
That's important in a country where overinvestment has led to a glut of some products, trapping companies in a cycle of price-cutting, he said.
"The flip side of China's cheap goods is that it's hard for companies to turn market dominance into returns for shareholders," said Li at his office in Hong Kong. "Cutthroat competition among companies means we have to make sure the financial landscape of those we invest in doesn't change."
Finding a winning formula to picking shares is especially important in China, where only about 5 percent of the more than 1,400 stocks have gained over the past five years. Mainland shares listed in Hong Kong, where Li also invests, have done better over the same period. All but three of the 38 so- called H shares in the Hang Seng China Enterprises Index have risen.
While this year's 43 percent rally by the Shanghai Composite Index has made it easier to find performers, the mainland market may fail to hold its gains if history is any guide. The Shanghai Composite has surged 580 points since December 5. The last rally of that size preceded a 14-month, 40 percent rout that ended in July last year. The index is 26 percent below its 2001 peak.
The Shanghai-based Pinpoint China Fund, owned by Pinpoint Asset Management, was ranked the top China hedge fund at the end of last month, said Eurekahedge, a Singapore-based hedge fund research company. It's followed by Dynasty China Mainland Fund, managed by Dynasty Management in Shanghai, and Martin Currie China Hedge Fund, run by Edinburgh-based Martin Currie Investment Management.
"The risks of investing into China's stock market haven't changed much," said Liu Feng, an executive director at Shenzhen-based Century Securities.
"They include financial frauds and regulatory uncertainty. You have to be either local or very familiar with the companies, their products and brands to ensure your investment will pay off."
Li is one of a new generation of former equity brokers who are taking advantage of the growth in hedge funds in China. The amount of money managed by funds located both inside and outside the mainland has grown more than eightfold in the past five years to about US$1.5 billion. The amount is 1.9 percent of the US$80 billion held by Asia Pacific hedge funds.
The Pinpoint fund has more than doubled its return on an investment last June in Huangshan Tourism Development, which has a stranglehold on tourism to the famous mountain in the company's base in Anhui province.
In February, Pinpoint bought Kweichow Moutai, a mainland maker of rice liquor. Shares in the Renhuai, Guizhou- based company, which had advanced 5.8 percent in the previous six months, have almost doubled since the purchase.
Yunnan Baiyao Group has almost doubled since Pinpoint's investment this year. Li said the fund may buy more shares in the Kunming, Yunnan-based company because of its dominant share of the niche market in baiyou, a traditional white powder used to treat wounds.
To hedge against the risk of the A-share market collapsing, Pinpoint is shorting Barclays' iShares Asia Trust Index, a Hong Kong exchange-traded fund that tracks the performance of 50 large-capitalization stocks listed in China. Short selling of yuan-denominated A shares is illegal.
Unlike mutual funds, hedge funds can short sell stocks or use derivatives to improve performance.
In a short trade, investors sell a borrowed security, betting the price will fall and they can buy it back, pocketing the difference. Derivatives such as futures contracts are based on an underlying product, like copper.
Last year, the Shanghai benchmark fell 8.3 percent. Hedge funds that invest in Greater China, which takes in Taiwan and Hong Kong, gained on average 7.2 percent, according to Eurekahedge.
The Pinpoint fund also shorted Hopewell Holdings, which runs one of the busiest toll roads in southern China, after buying shares in toll-road operator Shenzhen Expressway in early March. Shenzhen Expressway has returned 43 percent, while Hopewell Holdings has gained 10 percent this year.
The Shanghai-based fund shunned auto stocks such as Denway Motors, which makes cars in China with Honda Motor, and Brilliance China Automotive Holdings - Bayerische Motoren Werke's partner - as rising competition forced them to cut prices even as sales of vehicles rose.
Pinpoint hasn't always been right. The fund began short selling copper when prices on the London Metal Exchange reached about US$4,800 a metric ton, Li said. Once the contract advanced to about US$6,500 he cut his losses. The metal reached a record US$8,600 a ton on May 11.
Hedge funds investing in the Greater China region returned 24 percent this year through the end of April, three times the average gains for Asia as a whole, according to Eurekahedge.
"We think the China domestic market has just started its bull turn even though it has rallied over 40 percent since the beginning of the year," Li said.
Reforms to convert state-owned shares into tradable stock "will make it one of the most interesting and rewarding markets in the next 10 years." BLOOMBERG
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