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Monday, 30 January 2012

The end of the January effect?

Do today mark the end of the January effect whereby fund managers have rebuild the stock portfolio that they have sold in the previous year to take losses so that they can claim income tax deduction for this year?

As what one of Bloomberg's reporter have noted, it has been 2 years and we are still talking about the Greece debt issue now. Itlay Spain and the rest of the European nations are looking to get worse in the upcoming months ahead.

Fundamentals have not caught up with the reality as of just yet. US GDP numbers although did come better then expected, but underlying it is a strong inventory restocking that is not sustainable.

China despite it's strong growth is a big question mark after this year's leadership transition, as they might make it smooth for the markets and the population which is getting discontended with the rising income inequality.

In the Middle East, Iran is set to create more chaos as they would not sit back and let Hyperinflation set in. They might even create a war, causing instability in the region.

Given the magnitude of problems that are going by, I am staying at the sidelines with my cash

Thursday, 26 January 2012

Mapletree Industrial Trust reports stronger DPU

Mapletree Industrial Trust reports higher DPU of 2.06 cents per share this FY 2011 3Q. This was on the back of higher Portfolio occupancy and positive rental revisions.

However, one should note that the gross rental rates for it's portfolio is treading down at $1.53, down from the peak of $1.54 from the previous quarter.

In addition, rental renewals for it's lease is something to note. They are having 28.5% that is due for renewal for Fiscal Year 2012 and 30.4% for Fiscal Year 2013. The period when the economy is expected to grow at a slower pace and Europe is set to go into an recession. A very poor timing to do so, although the governments around the world is set to pump in more money if they see weaker economic growth for the next 2 years.

However, this measures would take time to implement and MIT might not be able to take advantage of the upswing. Rental rates for it's Business Park segment fell from $4.57 to $4.13 for renewals, although rent rates for it's flatted factories Stack-up and Warehouses are up.

Watch out for one of it's biggest tenant that takes up 1% of their revenue which is RIM, the maker of Blackberry, they are looking very weak now and might do burst soon. MIT would see a 1% fall in their earnings if RIM fails or pulls out from Singapore. They might face higher cost as they are going to enhance their asset buildings in Toa Payoh and Woodlands.

They would face bigger headwinds in the foreseeable future and for that, I would resist buying this stock as of just yet. Stock price fell in recent days from $1.08 to $1.06.

Wednesday, 25 January 2012

Obama wants to create jobs and increase equality

Obama wants to raise taxes for companies that are outsourcing the jobs out of US and increase subsidies for those who are bringing jobs back to US.

He also wants to simplify the ladder for workers to retain their skills in order to take advantage of the job openings for the engineering industry. He is ending subsides for the Oil and Gas industry and is trying his best to fund the renewable energy industry.

Taxes for the wealthy is set to rise to at least 30%. This is after Buffett created a debate about the low tax rates that he gets as compared to his secretary, Debbie Bosanek. She is set to sit next to first lady's box in the House of Representatives for Obama's annual address.  He is also clamping down on the workers who are earning big bucks in Wall Street and wants to remove moral hazard in this industry. Refusing to bail out any companies that are on the brink of bankruptcy.

 He is using the cost savings from the withdrawal of troops in Iraqi and Afghanistan, to build infrastructure and to pay down the government debt. For the housing front, he is planning to help owners to refinance their houses at a lower interest rate and to remove those misleading rates and risky mortgages that the industry is known for.

Tuesday, 24 January 2012

Most bearish call ever I saw

This is the most bearish call by stock market expert Joe Granville. He is well-known for successfully predicting the stock market treads, with him saying that the market will rally for the next two years way back in 2009, which pans out to be true. For this call, he is warning a sharp correction soon, using his volume indicator. I picked up this pierce of news from Investment Moats, one website that I just picked up recently.

Monday, 16 January 2012

Taiwan Trip Day 3 & 4 Kaoshiong

Heading to Taitung


She look like Jap right??? 

Hitting Taitung

Zhiben Hot Spring Area

Invaded someone's house by accident and was chased by 3 dogs!!!!

The Night Market here was not so strong

The very nice and very powdery Mochi

Hot Spring water from volcano  

Does the egg taste different if you boil using volcano water?

Taitung MRT station, heading to Kaoshiong

Kaoshiong! Very modern!!!

Nice toilet at Hostel