Unfortunately, we cannot avoid this eventually and viola, our 1st case of H1N1 from USA. Well, but to a certain extent, we reacted quite ok to this 1st case and for some reasons, she was very systematic and the GP has also reacted without any anxiety to call 993 ambulance to bring her to the hospital.
Tonight is the night where the 2 giants meet for the champions league finals. Will Manchester United do the doubles by retaining the title or will Barcelona disappoint the manu fans this time?
What Newcastle relegation teach our investment arm?
This is an unfortunately true fact of life. As quoted from the forums,
Being rich is one thing,the ability to form a good team depend on teamwork. Our investment arm can afford the highest wage but the right people with the right skill should only join the team. We certain dont want any prima donna.
Link: http://forum.channelnewsasia.com/viewtopic.php?t=248880
Being overpaid and unable to deliver results. Is our Temasek and GIC the likes of Alex Ferguson? There was a period where Man Utd didn't win any titles consecutively while Arsenal and Chelsea was bagging it again and again. However, he still managed to do the back to back winning of the titles yet again now.
Unfortunately, in the world of finance, I don't really think we have the empathy and sympathy for losing our coffers.
Being rich is one thing,the ability to form a good team depend on teamwork. Our investment arm can afford the highest wage but the right people with the right skill should only join the team. We certain dont want any prima donna.
Link: http://forum.channelnewsasia.com/viewtopic.php?t=248880
Being overpaid and unable to deliver results. Is our Temasek and GIC the likes of Alex Ferguson? There was a period where Man Utd didn't win any titles consecutively while Arsenal and Chelsea was bagging it again and again. However, he still managed to do the back to back winning of the titles yet again now.
Unfortunately, in the world of finance, I don't really think we have the empathy and sympathy for losing our coffers.
It's been some time..
since my last post as I was very busy at work, trying to catch up what I was lacking while I was focusing on my exams during the start of the month. Results are coming on 4th of June and hell.. I do hope I can graduate and not repeat any modules during such a bad time.
Nevertheless, I am still monitoring the markets quite frequently and markets seemed to hit a peak at dow: 8500, STI: 2250. Everytime when the market reaches the mark, profit taking seems to be heavy and trending along the channel. Dow never broke and closed below 8100 and STI never closed below 2050.
Looking at USD/Yen, it is relatively disturbing as it has reached a low of 95.12 - 95.14 +0.36 again. While Japan's GDP has been shrinking for the past few months, the unwinding seems to hit them even harder. Within all the doom and gloom, COE prices are still edging higher and higher each month in Singapore! Does it imply that there are really alot of buyers in the market or they reduced the supply and thus, price should go higher for COE? My guess is the car dealer market should be very dry and stiff due to this. Even I got turned off by the rising COE prices!
Last but not least, the weather has been horrible these few days. While the heat was building up fast and furious, you will suddenly see a turn in the weather and boom, the heavy rain starts. Kinda like our stock market isn't it? :)
Nevertheless, I am still monitoring the markets quite frequently and markets seemed to hit a peak at dow: 8500, STI: 2250. Everytime when the market reaches the mark, profit taking seems to be heavy and trending along the channel. Dow never broke and closed below 8100 and STI never closed below 2050.
Looking at USD/Yen, it is relatively disturbing as it has reached a low of 95.12 - 95.14 +0.36 again. While Japan's GDP has been shrinking for the past few months, the unwinding seems to hit them even harder. Within all the doom and gloom, COE prices are still edging higher and higher each month in Singapore! Does it imply that there are really alot of buyers in the market or they reduced the supply and thus, price should go higher for COE? My guess is the car dealer market should be very dry and stiff due to this. Even I got turned off by the rising COE prices!
Last but not least, the weather has been horrible these few days. While the heat was building up fast and furious, you will suddenly see a turn in the weather and boom, the heavy rain starts. Kinda like our stock market isn't it? :)
The state of work in Singapore
No link as I copied from the forums... realistically.. there's no smoke without fire from this article..
CSR Asia, 13 May 2009
by Stephen Frost
Work has been in the news in Singapore this week, with the release of a survey exposing some revealing trends. They survey covered numerous sectors, but one of the findings reported initially was that half of the finance professionals in the city-state would leave their jobs if the opportunity arose. And of those, 21 per cent said that they wanted a better work-life balance (35 per cent said they would jump ship if offered better pay).
Recruitment firm Robert Half, which conducted the survey, said that half of finance professionals in Singapore expressed dissatisfaction with their employment, even as concerns over job security and waning career prospects intensify in the downturn. The firm surveyed more than 3,500 finance professionals across 14 countries last October. The survey found that only 53 per cent of the 200 Singapore respondents were satisfied with their jobs - the second lowest globally after Japan, where 47 per cent of its financial workforce said they were satisfied with their jobs. Tim Hird, managing director of Robert Half Singapore, said the survey results show that “job satisfaction and company loyalty will continue to be tested as companies tackle the challenges posed by the economic downturn, including those related to their human capital”.
Hird has it right when he says that to attract and retain staff, companies should include training and career advancement opportunities, having leaders and mentors, and other non-monetary incentives that go towards personal development and a healthy work-life balance. The implications of this survey for a country aiming to retain its position as a financial hub are significant. If half of all finance professionals are dissatisfied with their jobs, it will be tough for Singapore to attract the best people and keep them. This is particularly pertinent for a country that is spending a great deal of money to attract high-paid foreign professionals (many of them who will be employed in the finance sector).
Other findings in the Robert Half survey point to some disturbing trends in the workplace more generally. The first is that employees here are turning up for work despite being sick. According to the survey, 61 per cent of Singaporean respondents still go to work when they are sick because they are scared of falling behind on their work; the highest rates of 6,000 polled across 20 countries including the United States and Japan 52 per cent of Singaporeans fear that too many sick days could go against them, while 50 per cent did not want to be perceived by superiors and peers as not working, the highest rates among those surveyed.
Levels of stress are not surprisingly high; globally, Singapore ranks only second to Japan, with 69 per cent and 71 per cent of respondents, respectively, who expect workplace stress levels to rise this year. The main reasons cited for the expected increase in stress levels are worries about job security and excessive workloads due to under-staffing. The survey also showed that the main impact of rising stress levels are lower staff morale (64 per cent) and lower quality of work or service (37 per cent). 32 per cent believed that decreased productivity due to stress-related issues would be the most significant cost to the company, followed by increased employee turnover (24 per cent) and a drop in the quality of work or service (19 per cent).
Singapore ranked highest globally again when it comes to employees checking company emails outside working hours, with 26 per cent spending on average 30 to 44 minutes a day doing this. The survey demonstrates, yet again, a point CSR Asia has been making for many years; the competitiveness of firms is dependent on the way employees are treated (beyond a decent salary). But in the Singapore context, the issue is even more important. If the city is to maintain its reputation as a financial hub, it needs a stable, professional workforce that is at the very least reasonably satisfied with workplace conditions.
That Singapore ranks so highly on many levels of dissatisfaction in the workplace should serve as a warning for the government that its national competitiveness is at risk. If the government wants to attract the best people from abroad (as it is currently doing), then it might want to consider what role employers could play to assist that. It doesn’t make sense for the Singapore government on the one hand to promote the country as an attractive destination for highly-paid professionals when on the other hand companies seem to be doing so poorly when it comes to workplace conditions and employee relations.
Perhaps it is time for the government to play an active role in encouraging companies to improve their social responsibility as part of improving Singapore’s national competitiveness.
CSR Asia, 13 May 2009
by Stephen Frost
Work has been in the news in Singapore this week, with the release of a survey exposing some revealing trends. They survey covered numerous sectors, but one of the findings reported initially was that half of the finance professionals in the city-state would leave their jobs if the opportunity arose. And of those, 21 per cent said that they wanted a better work-life balance (35 per cent said they would jump ship if offered better pay).
Recruitment firm Robert Half, which conducted the survey, said that half of finance professionals in Singapore expressed dissatisfaction with their employment, even as concerns over job security and waning career prospects intensify in the downturn. The firm surveyed more than 3,500 finance professionals across 14 countries last October. The survey found that only 53 per cent of the 200 Singapore respondents were satisfied with their jobs - the second lowest globally after Japan, where 47 per cent of its financial workforce said they were satisfied with their jobs. Tim Hird, managing director of Robert Half Singapore, said the survey results show that “job satisfaction and company loyalty will continue to be tested as companies tackle the challenges posed by the economic downturn, including those related to their human capital”.
Hird has it right when he says that to attract and retain staff, companies should include training and career advancement opportunities, having leaders and mentors, and other non-monetary incentives that go towards personal development and a healthy work-life balance. The implications of this survey for a country aiming to retain its position as a financial hub are significant. If half of all finance professionals are dissatisfied with their jobs, it will be tough for Singapore to attract the best people and keep them. This is particularly pertinent for a country that is spending a great deal of money to attract high-paid foreign professionals (many of them who will be employed in the finance sector).
Other findings in the Robert Half survey point to some disturbing trends in the workplace more generally. The first is that employees here are turning up for work despite being sick. According to the survey, 61 per cent of Singaporean respondents still go to work when they are sick because they are scared of falling behind on their work; the highest rates of 6,000 polled across 20 countries including the United States and Japan 52 per cent of Singaporeans fear that too many sick days could go against them, while 50 per cent did not want to be perceived by superiors and peers as not working, the highest rates among those surveyed.
Levels of stress are not surprisingly high; globally, Singapore ranks only second to Japan, with 69 per cent and 71 per cent of respondents, respectively, who expect workplace stress levels to rise this year. The main reasons cited for the expected increase in stress levels are worries about job security and excessive workloads due to under-staffing. The survey also showed that the main impact of rising stress levels are lower staff morale (64 per cent) and lower quality of work or service (37 per cent). 32 per cent believed that decreased productivity due to stress-related issues would be the most significant cost to the company, followed by increased employee turnover (24 per cent) and a drop in the quality of work or service (19 per cent).
Singapore ranked highest globally again when it comes to employees checking company emails outside working hours, with 26 per cent spending on average 30 to 44 minutes a day doing this. The survey demonstrates, yet again, a point CSR Asia has been making for many years; the competitiveness of firms is dependent on the way employees are treated (beyond a decent salary). But in the Singapore context, the issue is even more important. If the city is to maintain its reputation as a financial hub, it needs a stable, professional workforce that is at the very least reasonably satisfied with workplace conditions.
That Singapore ranks so highly on many levels of dissatisfaction in the workplace should serve as a warning for the government that its national competitiveness is at risk. If the government wants to attract the best people from abroad (as it is currently doing), then it might want to consider what role employers could play to assist that. It doesn’t make sense for the Singapore government on the one hand to promote the country as an attractive destination for highly-paid professionals when on the other hand companies seem to be doing so poorly when it comes to workplace conditions and employee relations.
Perhaps it is time for the government to play an active role in encouraging companies to improve their social responsibility as part of improving Singapore’s national competitiveness.
Markets have been rallying for the past 2 weeks
As you can see, global markets have been on a bull run since Feb lows and rallying on any bad news too!
While waiting for my US brokerage account to be opened, I am looking into ETFs in the US market. Why? Firstly, markets have been battered for the past 2 years and ETFs are very attractive especially for Dow and S&P 500. I am looking into these 2 for ETFs:
1. SPDR S&P 500 ETF (SPY)
2. DIAMONDS Trust, Series 1
More likely, I am more interested in the S&P 500 ETF as it sets as a benchmark to match against stock performance.
While waiting for my US brokerage account to be opened, I am looking into ETFs in the US market. Why? Firstly, markets have been battered for the past 2 years and ETFs are very attractive especially for Dow and S&P 500. I am looking into these 2 for ETFs:
1. SPDR S&P 500 ETF (SPY)
2. DIAMONDS Trust, Series 1
More likely, I am more interested in the S&P 500 ETF as it sets as a benchmark to match against stock performance.
Mas Selamat has been caught!
After such a long time when people are starting to forget him .. he's back! But the funny thing was, he was already caught a month ago but no one actually knew?
Singapore's JI leader Mas Selamat arrested in Malaysia
By TODAY | Posted: 08 May 2009 0143 hrs
SINGAPORE: Mas Selamat Kastari, Singapore's Jemaah Islamiyah (JI) l
eader who escaped from Whitley Road Detention Centre on February 27 last year, has been arrested.
The terrorist, who once plotted to hijack a plane and crash it into Changi Airport, was arrested in Malaysia in a joint intelligence operation involving the internal security agencies of the two countries.
It is understood that Mas Selamat was actually arrested over a month ago but had been under interrogation in Malaysia.
It is believed that the fugitive will soon be brought back to Singapore.
Last December, Prime Minister Lee Hsien Loong had said: "He is one up on us, but the game is not over. One day we will catch him."
Most security experts had expected the fugitive to head for Indonesia, where other JI members are believed to be based. So, it came as a surprise to some that he was arrested in Malaysia.
Mas Selamat gave his guards the slip while he was being taken to the toilet at the detention centre.
The escape sparked the largest manhunt in Singapore's history. Thousands of police and military personnel were roped in to comb the island for the fugitive. Checks at the borders were stepped up, road blocks were set up, officers went house to house, and forested areas were swept.
There were also offers of a million dollar reward by two businessmen for his capture.
Mas Selamat, however, remained elusive although dozens of illegal immigrants were flushed out. Posters bearing his face and description were put up everywhere and every mobile phone here was sent either a text description or a picture of him.
Mas Selamat's escape also resulted in the dismissal of the detention centre's superintendent over security lapses. The superintendent's deputy was demoted.
The two were the most senior officers in charge of the ground management of the detention centre, and were among six Internal Security Department (ISD) officers charged over the escape.
Mas Selamat fled Singapore in December 2001 following an Internal Security Department operation against the terrorist organisation.
The militant leader had been on the run after Singapore authorities discovered plans to crash seven trucks filled with bombs at various locations around the island.
Investigations also revealed that he was the mastermind behind a plan to hijack an airplane and crash it into Changi airport.
Mas Selamat was arrested by the Indonesian police on Bintan island in January 2006. He was detained for using a fake identity card.
When he was arrested, officers found literature on bomb-making on him. Based on investigations then, Indonesia's elite anti-terror police then discovered he was the leader of the Singapore Jemaah Islamiyah network.
They then deported him to Singapore, where he was detained at Whitley Road Detention Centre under the Internal Security Act.
The 48-year-old father of four was said to be involved in JI's plans to mount attacks against foreign and local establishments in Singapore.
These included the US Embassy and American Club, the Defence Ministry headquarters at Bukit Gombak and the Education Ministry building at North Buona Vista Drive. - CNA/TODAY/de
Singapore's JI leader Mas Selamat arrested in Malaysia
By TODAY | Posted: 08 May 2009 0143 hrs
SINGAPORE: Mas Selamat Kastari, Singapore's Jemaah Islamiyah (JI) l
eader who escaped from Whitley Road Detention Centre on February 27 last year, has been arrested.The terrorist, who once plotted to hijack a plane and crash it into Changi Airport, was arrested in Malaysia in a joint intelligence operation involving the internal security agencies of the two countries.
It is understood that Mas Selamat was actually arrested over a month ago but had been under interrogation in Malaysia.
It is believed that the fugitive will soon be brought back to Singapore.
Last December, Prime Minister Lee Hsien Loong had said: "He is one up on us, but the game is not over. One day we will catch him."
Most security experts had expected the fugitive to head for Indonesia, where other JI members are believed to be based. So, it came as a surprise to some that he was arrested in Malaysia.
Mas Selamat gave his guards the slip while he was being taken to the toilet at the detention centre.
The escape sparked the largest manhunt in Singapore's history. Thousands of police and military personnel were roped in to comb the island for the fugitive. Checks at the borders were stepped up, road blocks were set up, officers went house to house, and forested areas were swept.
There were also offers of a million dollar reward by two businessmen for his capture.
Mas Selamat, however, remained elusive although dozens of illegal immigrants were flushed out. Posters bearing his face and description were put up everywhere and every mobile phone here was sent either a text description or a picture of him.
Mas Selamat's escape also resulted in the dismissal of the detention centre's superintendent over security lapses. The superintendent's deputy was demoted.
The two were the most senior officers in charge of the ground management of the detention centre, and were among six Internal Security Department (ISD) officers charged over the escape.
Mas Selamat fled Singapore in December 2001 following an Internal Security Department operation against the terrorist organisation.
The militant leader had been on the run after Singapore authorities discovered plans to crash seven trucks filled with bombs at various locations around the island.
Investigations also revealed that he was the mastermind behind a plan to hijack an airplane and crash it into Changi airport.
Mas Selamat was arrested by the Indonesian police on Bintan island in January 2006. He was detained for using a fake identity card.
When he was arrested, officers found literature on bomb-making on him. Based on investigations then, Indonesia's elite anti-terror police then discovered he was the leader of the Singapore Jemaah Islamiyah network.
They then deported him to Singapore, where he was detained at Whitley Road Detention Centre under the Internal Security Act.
The 48-year-old father of four was said to be involved in JI's plans to mount attacks against foreign and local establishments in Singapore.
These included the US Embassy and American Club, the Defence Ministry headquarters at Bukit Gombak and the Education Ministry building at North Buona Vista Drive. - CNA/TODAY/de
A nice quote from Warren Buffett
Something that he always mentioned, simple yet hard to achieve.
If you don't feel comfortable owning something for 10 years, then don't own it for 10 minutes.
Are you able to buy a stock and feel comfortable holding it for 10 years?
If you don't feel comfortable owning something for 10 years, then don't own it for 10 minutes.
Are you able to buy a stock and feel comfortable holding it for 10 years?
Secretary accidentally bites off boss' penis
Tue, May 05, 2009
The Star/Asia News Network
The Star/Asia News Network
A SECRETARY accidentally bit off the penis of her employer while giving him oral sex in a car.
Sin Chew Daily and China Press reported yesterday that while the 30-year-old woman was performing oral sex on the man, the car was hit by a reversing van.
The impact of the crash, China Press reported, caused the woman to bite off her lover's organ.
The daily reported that the incident occurred in a Singapore park where the couple met after work.To make matters worse for the woman, her husband had sent a private investigator to spy on her after suspecting that she was being unfaithful.
The investigator said he had followed the woman and her boss to the park.
'On reaching the park, they did not alight from the car. Not long after, the car started to shake violently.
After the car was hit by the van, there was a loud scream from the woman whose mouth was covered with blood,' he said.
The woman later followed her lover to the hospital with part of the sexual organ.
The investigator, who called an ambulance to send the man to hospital, said that this was the first time he had encountered such an incident.
Finally!
My exams are over! Results will be out on the 4th of June, that's the only worry I have because I had a shocker for my Monday paper.. Apart from that, I am pretty confident that I will clear the other 2 papers. I need a miracle!!!
Warren Buffett: Inflation on the horizon
The Berkshire Hathaway chief says policymakers will have to raise money to pay off costly rescue plans - one way or another.
Citi may need $10 billion more - report
Wall Street Journal reports that Citigroup may need an additional $10 billion to meet the government's capitalization requirements.
NEW YORK (Reuters) -- Citigroup Inc. may need to generate up to $10 billion in new capital to meet the requirements of the U.S. government's stress tests, the Wall Street Journal reported on its Web site Friday.
Like other financial institutions, the bank is in talks with the Federal Reserve about whether it needs more capital.
Citigroup may need less if regulators accept its arguments about its financial health. In a best-case scenario, Citigroup could have a roughly $500 million cushion above what the government requires, the paper reported, citing unnamed sources.
Calls to Citigroup were not immediately returned. A spokesman for the U.S. Treasury had no comment.
The government created the stress tests as a way to measure the capital needs of the nation's 19 largest banks and their ability to withstand a variety of economic scenarios.
According to a government source, the results are expected to be released to banks on Tuesday and publicly on Thursday.
Analysts believe the government will say all 19 banks are solvent, but that some will need to drum up more capital than others to cushion themselves as the U.S. recession deepens.
The results are expected to show that the banks must raise about $150 billion or more in fresh capital, a scenario that is likely to test the stocks of the neediest banks next week.Celestial... again
I have been following on a thread in the forums under Channelnewsasia on Celestial and it has been interesting to see how contradicting some forumers may have for their own self interest and post conflicting posts and information.
[quote="hoegaandit" Posted: Fri May 01, 2009 2:58 am ]
It seems that the longists in this thread are not facing reality. The management has not been able to arrange any committed finance for the past six months and now there is only a month to go! This is despite the Chinese Government's massive stimulus and massively increased lending in China recently. It is all very well getting caught up in the Chairman's positive talk at the AGM - but where are the results?
In other words the recent price increase is completely speculative and just froth, which could collapse back suddenly.
The complete lack of any substantive progress on financing the CBs does not augur at all well for this company.
Thread: http://forum.channelnewsasia.com/viewtopic.php?t=240217&start=10
[quote="hoegaandit" Posted: Thu Apr 16, 2009 2:33 pm]
Ha ha friend - actually I was a long not a short. I try and do a more thorough job when I buy and post all the reasons not to buy and see if posters can counter them. Only problem was that I didn't buy enough.
No, haven't sold. Basically I am a fundamental investor who has been severely mauled by my "buy and hold" strategy in respect of small caps.
While not totally convinced against buy and hold I would like to recommend professor Mark who has a good track record with trends
http://www.asiawind.com/pub/hksr/mark/mark55.shtml
You will note he correctly forecast a major resurgence in stocks last year - but is also forecasting a further major downwave after that. That is also my own view.
So I will be looking to get out sometime - but not yet, as Celestial remains severely undervalued on almost all worst case scenarios.
Link: http://forum.channelnewsasia.com/viewtopic.php?t=234793&postdays=0&postorder=asc&start=60
------
Hmm, I believe everyone has their own agendas when you publish certain information about a company or industry or whatsoever. As mentioned in my previous posts, the market is always very efficient in the short run and highly inefficient in the long run. Since I am in the topic of Celestial, let me cover some parts of it again.
What is the convertible bonds that is haunting this company?
Quote from Wiki:
In finance, a convertible note (or, if it has a maturity of greater than 10 years, a "convertible debenture") is a type of bond that can be converted into shares of stock in the issuing company or cash of equal value, at some pre-announced ratio. It is a hybrid security with debt- and equity-like features. Although it typically has a low coupon rate, the holder is compensated with the ability to convert the bond to common stock at an agreed upon price and thereby participate in further growth in the company's equity value.
Next, what are the options then for Celestial? Finance this bonds from a loan. Here is one of the announcements from the CEO:
---------
CELESTIAL NUTRIFOODS LIMITED
(the “Company”)
(Incorporated in Bermuda)
UPDATE ON FINANCING FOR THE POTENTIAL EARLY REDEMPTION OF THE
S$235,000,000 CONVERTIBLE BONDS (the “Bonds”)
Reference is made to the announcement no. 00003 released by Celestial NutriFoods Limited
(the “Company”) on 23 March 2009 in relation to the Emphasis of Matter by Auditors on the
Financial Statements for the financial year ended 31 December 2008.
At the request of the Singapore Exchange Limited, the Board of Directors of the Company
wishes to update that the Company is trying to raise the necessary fund to finance the
potential early redemption of the Bonds. The Company has held discussions and negotiations
with several financial institutions, both in The People’s Republic of China (“PRC”) and outside
PRC to arrange for credit facilities to finance the potential early redemption of the Bonds but
has not been able to commit any fundings as of to-date. The financial crisis that has engulfed
the financial market has made this more difficult. The Management will continue to work hard
on this, and the Company will provide an update on the financing status via the SGXnet if
there is any material progress occurs between the monthly updates.
By Order of the Board
Ming Dequan
Executive Chairman
30 April 2009
---------
Does this add a twist to the bond conversion which is due soon in June? I believe it raises some concerns as investors do worry if they are unable to raise the funds needed. If they are unable to raise the funds necessary, the company may have to forced into insolvency. So what next?
Remember, their AGM has cleared all their resolutions:
---------
The Board of Directors of Celestial NutriFoods Limited (the "Company") wishes to announce that at the Annual General Meeting ("AGM") of the Company held on 28 April 2009, all resolutions relating to the matters as set out in the Notice of AGM dated 9 April 2009 were duly passed.
---------
Now, they have an option to issue rights up to 100% of the existing shares to raise capital in the open market. So what now?
I can't really answer for the bond holders, but in order to attract the bond holders NOT to exercise their bonds or further extend the redemption date, Celestial has to propose a very strong strategic plan moving forward. Also not forgetting I do have a vested interest in this company, I will be following closely on the announcements and the direction of the company.
[quote="hoegaandit" Posted: Fri May 01, 2009 2:58 am ]
It seems that the longists in this thread are not facing reality. The management has not been able to arrange any committed finance for the past six months and now there is only a month to go! This is despite the Chinese Government's massive stimulus and massively increased lending in China recently. It is all very well getting caught up in the Chairman's positive talk at the AGM - but where are the results?
In other words the recent price increase is completely speculative and just froth, which could collapse back suddenly.
The complete lack of any substantive progress on financing the CBs does not augur at all well for this company.
Thread: http://forum.channelnewsasia.com/viewtopic.php?t=240217&start=10
[quote="hoegaandit" Posted: Thu Apr 16, 2009 2:33 pm]
Ha ha friend - actually I was a long not a short. I try and do a more thorough job when I buy and post all the reasons not to buy and see if posters can counter them. Only problem was that I didn't buy enough.
No, haven't sold. Basically I am a fundamental investor who has been severely mauled by my "buy and hold" strategy in respect of small caps.
While not totally convinced against buy and hold I would like to recommend professor Mark who has a good track record with trends
http://www.asiawind.com/pub/hksr/mark/mark55.shtml
You will note he correctly forecast a major resurgence in stocks last year - but is also forecasting a further major downwave after that. That is also my own view.
So I will be looking to get out sometime - but not yet, as Celestial remains severely undervalued on almost all worst case scenarios.
Link: http://forum.channelnewsasia.com/viewtopic.php?t=234793&postdays=0&postorder=asc&start=60
------
Hmm, I believe everyone has their own agendas when you publish certain information about a company or industry or whatsoever. As mentioned in my previous posts, the market is always very efficient in the short run and highly inefficient in the long run. Since I am in the topic of Celestial, let me cover some parts of it again.
What is the convertible bonds that is haunting this company?
Quote from Wiki:
In finance, a convertible note (or, if it has a maturity of greater than 10 years, a "convertible debenture") is a type of bond that can be converted into shares of stock in the issuing company or cash of equal value, at some pre-announced ratio. It is a hybrid security with debt- and equity-like features. Although it typically has a low coupon rate, the holder is compensated with the ability to convert the bond to common stock at an agreed upon price and thereby participate in further growth in the company's equity value.
From the issuer's perspective, the key benefit of raising money by selling convertible bonds is a reduced cash interest payment. However, in exchange for the benefit of reduced interest payments, the value of shareholder's equity is reduced due to the stock dilution expected when bondholders convert their bonds into new shares.
-----------
Next, what are the options then for Celestial? Finance this bonds from a loan. Here is one of the announcements from the CEO:
---------
CELESTIAL NUTRIFOODS LIMITED
(the “Company”)
(Incorporated in Bermuda)
UPDATE ON FINANCING FOR THE POTENTIAL EARLY REDEMPTION OF THE
S$235,000,000 CONVERTIBLE BONDS (the “Bonds”)
Reference is made to the announcement no. 00003 released by Celestial NutriFoods Limited
(the “Company”) on 23 March 2009 in relation to the Emphasis of Matter by Auditors on the
Financial Statements for the financial year ended 31 December 2008.
At the request of the Singapore Exchange Limited, the Board of Directors of the Company
wishes to update that the Company is trying to raise the necessary fund to finance the
potential early redemption of the Bonds. The Company has held discussions and negotiations
with several financial institutions, both in The People’s Republic of China (“PRC”) and outside
PRC to arrange for credit facilities to finance the potential early redemption of the Bonds but
has not been able to commit any fundings as of to-date. The financial crisis that has engulfed
the financial market has made this more difficult. The Management will continue to work hard
on this, and the Company will provide an update on the financing status via the SGXnet if
there is any material progress occurs between the monthly updates.
By Order of the Board
Ming Dequan
Executive Chairman
30 April 2009
---------
Does this add a twist to the bond conversion which is due soon in June? I believe it raises some concerns as investors do worry if they are unable to raise the funds needed. If they are unable to raise the funds necessary, the company may have to forced into insolvency. So what next?
Remember, their AGM has cleared all their resolutions:
---------
The Board of Directors of Celestial NutriFoods Limited (the "Company") wishes to announce that at the Annual General Meeting ("AGM") of the Company held on 28 April 2009, all resolutions relating to the matters as set out in the Notice of AGM dated 9 April 2009 were duly passed.
---------
Now, they have an option to issue rights up to 100% of the existing shares to raise capital in the open market. So what now?
I can't really answer for the bond holders, but in order to attract the bond holders NOT to exercise their bonds or further extend the redemption date, Celestial has to propose a very strong strategic plan moving forward. Also not forgetting I do have a vested interest in this company, I will be following closely on the announcements and the direction of the company.
Obama's success: It's all about 2010
The first 100 days is a premature marker to fully assess the president. But Obama's final buzzer on the economy may come at the end of his first 500.
By Jeanne Sahadi, CNNMoney.com senior writer
By Jeanne Sahadi, CNNMoney.com senior writer
April 30, 2009: 10:12 AM ET
NEW YORK (CNNMoney.com) -- President Obama has said if the economy doesn't turn around on his watch, voters won't give him a second term.
"If I don't have this done in three years, then there's going to be a one-term proposition," he said in an NBC interview in February.
Policy experts agree Obama's presidency will be rated on the speed and depth of the economic recovery. But they think he may only have until mid-2010 to get the economy moving in the right direction before Americans start blaming him for what ails them."If we get back to an upward economy in 2010, it'll be good. But if we're in it [longer] ... people's opinions will be formed. That's as much patience as Americans will have," said Gary Clyde Hufbauer, Reginald Jones senior fellow of the Peterson Institute.
And voters could take it out on Democrats in the November 2010 midterm congressional elections.
"Republicans could cut into Democratic majorities," said American University Professor Allan Lichtman, a political historian and presidential election expert.
What specifically needs to happen by mid-2010? There needs to be clear evidence of a recovery, with unemployment back down around 8%, production up, foreclosures on the decline, and stocks higher. "Take your headlines today and flip the verbs," Hufbauer said.
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After the 100 days of Obama administration, people are starting to judge him. I guess it's slightly unfair for the man as the economy was in total shables when he was going to take over. Now people are judging his moves and actions taken and thinking ahead of the "what if the economy doesnt recover ...".
Recovery is never a straight and easy road and more pains will be felt before the true recovery starts. We are seeing it right now with AIG, selling everything they have. Now Chrylser, most probably GM and who will be next? Citigroup?
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