Thursday, January 21, 2010

Copper prices lower on China news, US housing starts

Copper prices fell Wednesday on the news that China is moving to limit the amount of credit available in the country in order to make sure that inflation does not spiral out of control.
Despite some analyst predictions that demand for the metal used in construction and manufacturing will remain strong, the new reports have spurred concern that demand will fall.
Also hurting copper prices was the news that US housing starts dropped by 4 percent in December, from November levels.

March copper was down 9 cents to $3.36 per pound in New York trade, while three-month copper dropped $145 to $7,387.50 per tonne on the London Metal Exchange.

Other base metals prices also fell in London as aluminium fell $29 to $2,257.50 per tonne, zinc was down $61 to $2,441.50 per tonne, lead was $86 lower to $2,386.50 per tonne, tin fell $137.50 to $17,775 per tonne and nickel dropped $410 to $18,802.50 per tonne.

Leader inked US$ 107 m 230kV power project in Cambodia

The Star :

Leader Universal Holdings Bhd will embark on a US$107mil power transmission project in Cambodia next month, said group managing director Datuk Sean H’ng Chun Hsiang.
He told StarBiz that construction work for the first phase of the project would kick off immediately after Chinese New Year.

Leader, through its subsidiary Cambodian Transmission Ltd, inked the deal for the project with state-owned power company Electricite du Cambodge (EDC) yesterday, which commissioned the group to build a 230-kv power transmission system from North Phnom Penh to Kampong Cham on a build-operate-transfer basis.

Under the agreement, Leader will build, manage and maintain the transmission line for 25 years before returning it to the government. “Under the agreement, Leader will build two substations and a power transmission line in three phases,” H’ng said.

He said the first phase, involving the construction of a substation in Kampong Cham, was scheduled for completion in July 2011 while the construction of the North Phnom Penh substation under the second phase was slated to be completed by March 2012. “The final phase, which involves the commissioning of the 110-km transmission line from the North Phnom Penh substation to the Kampong Cham substation, will be completed in December 2013,” he said.
Leader would fund the project with internally generated funds and bank borrowings, he said, adding that the bank loans “are now in place.”

The master plan for power generation in Cambodia allowed a four-fold increase in installed capacity over the next five years, according to H’ng. “The forecast for the power load in Cambodia is that it will grow to 2,315MW in 2024 from 740MW in 2010, which is a more than a three-fold increase within 14 years, growing at a 8.5% per year growth rate,” he said.

On Leader’s 100MW coal-fired power project in Sihanoukville, H’ng said the project should be operational in 2012. “We have a 30-year build-own-operate concession to supply electricity to EDC,” he said.

Saturday, January 16, 2010

Buy 75 sen ... Sell 80 sen

I analyse some stock, and value it at RM 1
I buy at 75 sen yesterday and sell it at 80 sen today.

I analyse some stock, and value it at 50 sen
I buy at 75 sen yesterday and sell it at 80 sen today.

I don't analyse the stock, don't know it value.
I buy at 75 sen yesterday and sell it at 80 sen today.

One thing for certain, I make 5 sen in one day.
But some people could not tell the different between the 3 scenario.
Including me ?

Final Thoughts

In a rising market, everyone makes money and a value philosophy is unnecessary. But because there is no certain way to predict what the market will do, one must follow a value philosophy at all times. By controlling risk and limiting loss through extensive fundamental analysis, strict discipline, and endless patience, value investors can expect good results with limited downside. You may not get rich quick, but you will keep what you have, and if the future of value investing resembles its past, you are likely to get rich slowly. As investment strategies go, this is the most that any reasonable investor can hope for.

The real secret to investing is that there is no secret to investing. Every important aspect of value investing has been made available to the public many times over, beginning in 1934 with the first edition of Security Analysis. That so many people fail to follow this timeless and almost foolproof approach enables those who adopt it to remain successful. The foibles of human nature that result in the mass pursuit of instant wealth and effortless gain seem certain to be with us forever. So long as people succumb to this aspect of their natures, value investing will remain, as it has been for 75 years, a sound and low-risk approach to successful long-term investing.