Dividend Chaser on SMRT reporting net loss

(From Article)

The Board of Directors of SMRT Corporation Ltd (the “Company”) wishes to announce that the Company and its subsidiaries (the “Group”) are expected to report a net loss for the fourth (4th) quarter ending 31 March 2013 (“4Q FY2013”).

This is in line with deteriorating profitability as indicated in Paragraph 7 of the Unaudited Financial Statements for the Third Quarter ended 31 December 2012.

Increasing operating costs without corresponding fare adjustments have adversely affected the Group’s profitability.

In addition, the Directors are of the view that it is appropriate to impair $17 million of goodwill in its associate, Shenzhen ZONA Transportation Group Co. Ltd., which will result in a loss for 4Q FY2013.

Notwithstanding the above, the Group is expected to be profitable for the full year ending 31 March 2013.

Further details of the Group’s performance will be disclosed when the Group announces its full year financial results.

Dividend Chaser on Hong Kong port workers on strike to demand pay rise

(From Article)

HONG KONG - Over 100 workers at a Hong Kong container port operated by a firm owned by tycoon Li Ka-shing were on strike as they blocked roads and staged a sit-in to demand higher wages.

Carrying banners, dock workers from Hongkong International Terminals (HIT) shouted "We will fight to the end" at a container port near the city's airport to seek a 17pc pay rise.

A minor scuffle broke out Thursday when some protesters stormed into the terminal in a bid to have their daily wages increased to $206 amid rising inflation costs in HK, one of the world's busiest container ports.

The workers said their salaries had only been increased once in the last 15 years, and vowed to continue the strike until the port operator was willing to meet their request.

"If the company is still unwilling to come to the negotiation table with the union, then our demands will continue," Union of Hong Kong Dockers spokesman Stanley Ho said.

A spokeswoman from HIT told AFP that the protest has not affected its operation, saying the effect was only "small".

The firm has reportedly said that the protesters were workers hired through a contractor.

HIT, which operates 12 berths, is a unit of tycoon Li's Hutchison Port Holdings Trust -- part of the vast empire owned by Asia's richest man, whose firms control about 70 percent of the city's port traffic.

Dividend Chaser on Uncle888's day traders

I recently enjoyed reading articles from 'create wealth 8888' blog. Here is one of 'uncle888' article on day traders.

-----------------------------------------

Are you a day trader?

If you are not a day trader, active capital re-cycling is not that easy as you think.

For those who have longer time horizon; they may be better off to be long-term investors than to be day traders who have another full time jobs to take care.

We also like to think that we can easily buy back stocks after selling for profits.

Actually, it is emotionally tough to buy back.

It is never an easy task to do it. BTW, look at your own past trading history, how many times have you actually bought back and still better off than holding for dividends and potential capital gains.

That is why Uncle always stressed the importance of Tracking and Measuring Performance. No tracking and measuring? How to tell?

Even Jesse Livermore, who is the author of "How to Trade in Stocks"(1940), was one of the greatest traders of all time.

In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!

It is no trick at all to be right on the market.

You always find lots of early bulls in bull markets and early bears in bear markets.

I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit.

And their experience invariably matched mine -- that is, they made no real money out of it.

I found it one of the hardest things to learn.

But it is only after a stock operator has firmly grasped this that he can make big money.

It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”

Dividend Chaser on Maybank Time Deposits

(Personal Sharing)

2 days ago I went to Maybank Jurong Point for the minimum 25,000 SGD time deposit.

I was asked to speak to a bank financial adviser. She wasn't very interested to talk to me.

She scribbled something on a piece of paper on something I make out to be '5%...' .

Only when I asked her was it regular savings then she said yes.

I replied to her I was not interested in regular savings, then she asked me to wait at the counter for the bank tellers to assist me with my time deposit.

The bank teller was much more friendly. At least she was giving me a friendly smile when servicing me.

Why are bank financial adviser giving that kind of 'despise look' when customers are not interested in their products?

At that moment, I really felt disappointed to be treated in this way. I hope the service would be better next time when I speak to another Maybank financial adviser.

Dividend Chaser on Hutchison Port Holdings Trust joining STI on 3 April

(From Article)

Hutchison Port Holdings Trust joins the STI Effective from the start of trading on 3 April, Hutchison Port Holdings Trust (HPHT) will be added to the STI, replacing Fraser & Neave.

Dividend Chaser on Cyprus Bailout

(From Article)

Banks are having an especially tough time with Cyprus' bailout. Bank of America (NYSE: BAC ) has fallen 1.4% today, and JPMorgan (NYSE: JPM ) is down 0.7%.

The major hit big depositors took in Cyprus could lead to falling deposits in European banks, especially after Dutch Finance Minister Jeroen Dijsselbloem said this may be the new bailout template for Europe.

If it is, Europeans could rush to banks to pull money out, and we all know how harmful bank runs are to the industry.

Bank of America and JPMorgan are so intertwined with global banks that the increased risk in Europe is a negative for both companies.

Unless Spain, Italy, or Portugal ends up in the same boat as Cyprus, these banks aren't in any serious trouble, and there's a strong possibility that Cyprus was a big enough warning sign to make other countries get their fiscal houses in order.

What is Cyprus Bailout??

What they did was close the two largest banks, split each on into two banks, all the under $100K (euro) insured depositors in one bank, all the over $100K (euro) uninsured depositors in the other. They plan on taking as much as 40% of the 200K (euro) or larger accounts, which includes almost all of the Russian depositors, including Putin.

Dividend Chaser on Hong Kong Raising Home Loan Rates

(From Article)

HONG KONG — Hong Kong leaders, who have struggled in vain for three years to slow growth in home prices amid fears of a housing bubble in the Special Administrative Region, are finally about to get their wish as the city’s biggest banks raise mortgage rates.

Prices could fall as much as 20 per cent over the next two years, according to Deutsche Bank analysts, after lenders including HSBC Holdings, Hong Kong’s biggest by assets, and Standard Chartered raise their home loan rates by 25 basis points in response to tighter risk rules.

Dividend Chaser on Federal Reserve Held Steady on Stimulus

This article is from uncle8888 blog:

NEW YORK: US stocks recorded solid gains on Wednesday as the Federal Reserve held steady on its policy of economic stimulus.
The Dow Jones Industrial Average gained 55.91 points (0.39 percent) at 14,511.73.

The broad-based S&P 500 picked up 10.37 points (0.67 percent) at 1,558.71, while the tech-rich Nasdaq Composite Index increased 25.09 points (0.78 percent) to 3,254.19.

The Federal Reserve, as widely expected, kept its monetary easing policies in place as it trimmed its 2013 and 2014 growth forecasts for the US economy.
The policies have boosted shares and been seen as a major factor in the Dow's recent record-setting performance.

Barclays predicted the Fed will continue its asset purchases at the current $85 billion-a-month pace through the end of the year, "before beginning to slow purchases sometime in the first half of 2014."

Federal Express fell 6.9 percent after reporting earnings below expectations. The company also gave a tepid outlook for 2013, noting "accelerating customer preference for lower-yielding international services."

American Realty Capital Properties, a real estate investment trust specialising in commercial properties, rose 5.2 percent after announcing that it proposed to buy Cole Credit Property Trust III for more than $9 billion, including assumption of debt.

Homebuilder Lennar Corp. edged up 4.8 percent after reporting solid quarterly earnings and pointing to strong trends in the housing market, such as higher home prices.

Williams-Sonoma leaped 10.3 percent after announcing a 41 percent dividend increase and a three-year $750 million stock repurchase program.

Anadarko Petroleum and its partners moved higher after announcing a significant petroleum discovery in the Gulf of Mexico. Anadarko rose 3.8 percent, Cobalt International leaped 8.1 percent, Marathon Oil added 1.9 percent and ConocoPhillips climbed 1.9 percent.

Valeant Pharmaceuticals gained 2.7 percent after announcing a plan to acquire Obagi Medical Products, which surged 28.2 percent.

Bond prices fell. The yield on the 10-year Treasury rose to 1.94 percent from 1.91 percent late Tuesday, while the 30-year rose to 3.17 percent from 3.13 percent. Prices move inversely to yields.

Dividend Chaser on Rights Issue

Rickmers maritime is offering rights issue 1 for 1 at 0.24. Share price dropped to as low as 0.345 on 19Mar after the news is announced.


Cash-strapped companies can turn to rights issues to raise money when they really need it. In these rights offerings, companies grant shareholders a chance to buy new shares at a discount to the current trading price. Let's look at how rights issue work, and what they mean for all shareholders.

Defining a Rights Issue and Why It's Used
A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. More specifically, this type of issue gives existing shareholders securities called "rights", which, well, give the shareholders the right to purchase new shares at a discount to the market price on a stated future date. The company is giving shareholders a chance to increase their exposure to the stock at a discount price.

But until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way they would trade ordinary shares. The rights issued to a shareholder have a value, thus compensating current shareholders for the future dilution of their existing shares' value.

Troubled companies typically use rights issues to pay down debt, especially when they are unable to borrow more money. But not all companies that pursue rights offerings are shaky. Some with clean balance sheets use them to fund acquisitions and growth strategies. For reassurance that it will raise the finances, a company will usually, but not always, have its rights issue underwritten by an investment bank.

How Rights Issues Work
So, how do rights issues work? The best way to explain is through an example.

Let's say you own 1,000 shares in Wobble Telecom, each of which is worth $5.50. The company is in a bit of financial trouble and sorely needs to raise cash to cover its debt obligations. Wobble therefore announces a rights offering, in which it plans to raise $30 million by issuing 10 million shares to existing investors at a price of $3 each. But this issue is a three-for-10 rights issue. In other words, for every 10 shares you hold, Wobble is offering you another three at a deeply discounted price of $3. This price is 45% less than the $5.50 price at which Wobble stock trades. (For further reading, see Understanding Stock Splits.)

As a shareholder, you essentially have three options when considering what to do in response to the rights issue. You can (1) subscribe to the rights issue in full, (2) ignore your rights or (3) sell the rights to someone else. Here we look how to pursue each option, and the possible outcomes.

1. Take up the rights to purchase in full
To take advantage of the rights issue in full, you would need to spend $3 for every Wobble share that you are entitled to under the issue. As you hold 1,000 shares, you can buy up to 300 new shares (three shares for every 10 you already own) at this discounted price of $3, giving a total price of $900.

However, while the discount on the newly issued shares is 45%, it will not stay there. The market price of Wobble shares will not be able to stay at $5.50 after the rights issue is complete. The value of each share will be diluted as a result of the increased number of shares issued. To see if the rights issue does in fact give a material discount, you need to estimate how much Wobble's share price will be diluted.

In estimating this dilution, remember that you can never know for certain the future value of your expanded holding of the shares, since it can be affected by any number of business and market factors. But the theoretical share price that will result after the rights issue is complete - which is the ex-rights share price - is possible to calculate. This price is found by dividing the total price you will have paid for all your Wobble shares by the total number of shares you will own. This is calculated as follows:

1,000 existing shares at $5.50 $5,500
300 news shares for cash at $3 $900
Value of 1,300 shares $6,400
Ex-rights value per share $4.92 ($6,400.00/1,300 shares)

So, in theory, as a result of the introduction of new shares at the deeply discounted price, the value of each of your existing shares will decline from $5.50 to $4.92. But remember, the loss on your existing shareholding is offset exactly by the gain in share value on the new rights: the new shares cost you $3, but they have a market value of $4.92. These new shares are taxed in the same year as you purchased the original shares, and carried forward to count as investment income, but there is no interest or other tax penalties charged on this carried-forward, taxable investment income.

2. Ignore the rights issue
You may not have the $900 to purchase the additional 300 shares at $3 each, so you can always let your rights expire. But this is not normally recommended. If you choose to do nothing, your shareholding will be diluted thanks to the extra shares issued.

3 Sell your rights to other investors
In some cases, rights are not transferable. These are known as "non-renounceable rights". But in most cases, your rights allow you to decide whether you want to take up the option to buy the shares or sell your rights to other investors or to the underwriter. Rights that can be traded are called "renounceable rights", and after they have been traded, the rights are known as "nil-paid rights".

To determine how much you may gain by selling the rights, you need to estimate a value on the nil-paid rights ahead of time. Again, a precise number is difficult, but you can get a rough value by taking the value of ex-rights price and subtracting the rights issue price. So, at the adjusted ex-rights price of $4.92 less $3, your nil-paid rights are worth $1.92 per share. Selling these rights will create a capital gain for you.

Be Warned
It is awfully easy for investors to get tempted by the prospect of buying discounted shares with a rights issue. But it is not always a certainty that you are getting a bargain. But besides knowing the ex-rights share price, you need to know the purpose of the additional funding before accepting or rejecting a rights issue. Be sure to look for a compelling explanation of why the rights issue and share dilution are needed as part of the recovery plan. Sure, a rights issue can offer a quick fix for a troubled balance sheet, but that doesn't necessarily mean management will address the underlying problems that weakened the balance sheet in the first place. Shareholders should be cautious.

Dividend Chaser on Asia Stock fall because of Cyprus levy on bank deposits

Japan’s Nikkei Stock Average JP:100000018 -2.56% tumbled 2.1%, South Korea’s Kospi KR:SEU -0.86% lost 0.6%, and Australia’s S&P/ASX 200 index AU:XJO -2.05% fell 1.4%.


Reuters
In Chinese trading, Hong Kong’s Hang Seng Index HK:HSI -2.19% dropped 2.2%, while the Shanghai Composite Index CN:000001 -1.27% gave up a more modest 0.7%.

U.S. index futures also took a hit, as the Dow Jones Industrial Average DJIA -0.17% contract traded 133 points, or 0.9%, Nasdaq COMP -0.30% futures fell 33 points, or 1.2%, while those for the S&P 500 SPX -0.16% lost 19.30 points, or 1.2%.

In the currency markets, the euro EURUSD -0.0323% fell sharply to $1.2908 in Asian trading hours Monday, down from $1.3076 in late North American trading Friday.

The losses for Asian stocks and other securities came after Cyprus announced plans for a one-off levy on bank deposits in exchange for equity in the banks. The measure was part of a deal that would have international creditors provide 10 billion euros ($12.9 billion) to shore up the island nation’s finances.

The move would mark the first time in the euro-zone debt crisis that private citizens’ bank deposits would be tapped, and Morgan Stanley said the introduction of the levy “seems to have broken another taboo.”

The strategists went on to question whether “senior bank debt is the next taboo to be broken, given the linkage with deposits.”

Morgan Stanley recommended selling high-beta banks and said that, broadly, “investors should expect material market weakness in the near term.” (Read more analyst reaction to the Cyprus deposit levy.)

Dividend Chaser on Singapore Exams

From Today 17Mar2013:

In Singapore, examinations and school in its entirety are stressful. They are meant to be stressful, because it is the rigour of school that has taught us how to deal with stress and manage our time — important attributes in the working world.

But there is far too much emphasis on exams. We should not be defined by our results. We are so caught up in trying to score well that we neglect learning.

We memorise lecture notes and revere the 10-year series almost as if it were a religious text.

Our education system does not promote learning. Sometimes, when we ask teachers questions, we are given an answer that says “it is not in your syllabus, you don’t have to know it”.

We learn only what we need to learn, not what we want to learn, choosing the courses that are easier to score so as to get higher grades and enrol in better schools.

But what we can do does not depend on the schools we came from. We should instead remove competition between schools and level up “low-performing” schools.

The battle for positions at the university level also reveals the perception that a good degree will ensure a good, high-paying job and hence a good life.

But we need to realise that a good life consists of more than that.

We need to inspect the reasons for our policies. We need to differentiate between producing talent to grow our economy and producing talent because we want the best for our children.

Dividend Chaser on beware of BBs fake breakout

Because BBs' modus operandi are usually conduct fake breakouts to trap public so that they can unload at higher prices and start shorting, this was what they did on 15Mar during the last 30 minutes before market closed. If you looked at the top volume, stocks like rowsley, capitaland, singhaiyi, carriernet all came off from their high since morning. So indeed pennies and some other counters moved up a little to trap public before it all crashed!

Beware!

Dividend Chaser on STI Reserve List

The STI reserve list, comprising the five highest ranking non-constituents of the STI by market capitalisation, will be (in order of size) Hutchison Port Holdings Trust, Keppel Land, Ascendas Real Estate Investment Trust, UOL Group and CapitaCommercial Trust. Companies in the reserve list will replace any constituents that become ineligible as a result of corporate actions before the next review.

The STI is widely followed by investors as the benchmark for the Singapore market and is used as the basis of a range of financial products including Exchange Traded Funds (ETFs), futures, warrants and other derivatives.

STI Constituents:

CapitaLand Ltd
CapitaMall Trust
CapitaMalls Asia Ltd
City Developments Ltd
ComfortDelgro Corp Ltd
DBS Group Holdings Ltd
Fraser and Neave Ltd
Genting Singapore PLC
Global Logistic Properties Ltd
Golden Agri-Resources Ltd
Hongkong Land Holdings Ltd
Jardine Cycle & Carriage Ltd
Jardine Matheson Holdings Ltd
Jardine Strategic Holdings Ltd
Keppel Corp Ltd
Noble Group Ltd
Olam International Ltd
Oversea-Chinese Banking Corp Ltd
SembCorp Industries Ltd
SembCorp Marine Ltd
SIA Engineering Co Ltd
Singapore Airlines Ltd
Singapore Exchange Ltd
Singapore Press Holdings Ltd
Singapore Technologies Engineering Ltd
Singapore Telecommunications Ltd
Starhub Ltd
Thai Beverage PCL
United Overseas Bank Ltd
Wilmar International Ltd

Dividend Chaser on STXOSV still being listed in SGX

STX OSV Holdings, the offshore vessels builder, will remain listed on the Singapore Exchange after offeror Fincantieri Oil & Gas only accumulated 55.6% of its shares by the close of the offer period on March 13, 5.30pm.

Dividend Chaser on Exams in Singapore Schools

This article is taken from Today:

FROM
DEAN LUNDQUIST
-6 HOURS 50 MIN AGO
Having taught in Japan and Singapore over the last decade, I have found that while students from these two countries tend to score well in standardised tests, their critical and creative thinking skills tend to be lacking.

Generally speaking, these students expect teachers to “spoon feed” them answers so that they can memorise them and regurgitate them at a later date. I can’t say that I blame them. It seems that this is what the majority of their education system is based upon.

Both cultures put a high value on scoring well on standardised tests. However I believe that standardised tests are really only an indicator of how good the student is at taking standardised tests.

When I first learned of the Primary School Leaving Examination in Singapore, I was quite shocked. It seemed as though a child’s future relied too heavily on a test score taken when he or she was 11 or 12 years old. Needless to say, I am not a big fan of standardised tests. I believe that they have created a generation of test-takers rather than a generation of problem solvers and creative thinkers. The big questions in life are ones that you must answer for yourself. The answers cannot be memorised.

Dividend Chaser on MOH banning point of sale display of cigarettes

SINGAPORE — The Health Ministry is looking at the possibility of banning point-of-sale display of tobacco products in stores.

This means that retailers may not be able to openly display cigarettes for sale.

Health Minister Gan Kim Yong told Parliament that it may be an effective way of discouraging individuals from smoking or picking up the habit.

Customers will have to ask for tobacco products. These products will have to stored in areas that are not visible to the public, such as in closed drawers.

Mr Gan said his ministry will seek the views form the public, in the coming months, on this idea.

Smoking prevalence in Singapore, said Mr Gan, is relatively low, at 14.3 per cent, compared to about 20 per cent in New Zealand, 21 per cent in the UK, and even higher in other developed countries.

But he added it on the rise, especially among young adults.

Smoking prevalence among young adults aged 18 to 29 years has risen at a faster rate than that of the general population - from 12.3 per cent in 2004, to 16.3 per cent in 2010.

Separately, as part of the ministry’s broader vision to push for healthy living among Singaporeans, Mr Gan announced the set-up of a Healthy Living Master Plan Taskforce.

It is chaired by Parliamentary Secretary Associate Professor Muhammad Faishal Ibrahim.

The taskforce will develop a plan on how Singapore can change its current landscape to encourage healthier living.

But Mr Gan said such change must come from within.

“We want this plan to be owned by the people, and to enable Singaporeans to make decisions that favour healthy living,” he said.

It has developed a 3P approach: Place, People, and Price.

It will consult stakeholders before finalising its recommendations.

Among the young, the Health Ministry (MOH) and the Health Promotion Board (HPB) are looking into introducing a set of food advertising guidelines for children.

Mr Gan said there is growing evidence that advertising affects children’s food choices and dietary habits.

As such, he said authorities will strengthen the standards for advertising to children, for food and drink products which are high in fat, sugar or salt.

“We conducted a broad-based consultation process on this issue last year. Responses from the public were overwhelmingly supportive for restrictions on food advertising to children to be introduced,” said Mr Gan.

MOH and HPB, together with the Advertising Standards Authority of Singapore, an Advisory Council to the Consumer Association of Singapore (CASE), will jointly work out the details for implementation. It is to be announced later. CHANNEL NEWSASIA

Dividend Chaser on Marking of SGX sell orders

GX-ST RULES ON MARKING OF SELL ORDERS
4.1 SGX-ST has introduced disclosure requirements to facilitate the marking of sell orders on its securities market. SGX-ST Trading Members may not enter a sell order unless the relevant market participant has informed them whether an order is a short sell order. Market participants are expected to split partial short orders, where they do not own the full quantity of securities to be sold, into two separate orders with the short sale order marked accordingly.
4.2 SGX-ST will publish aggregated short selling information, such as short sales volume and value, on the SGX website by the start of each trading day, based on short sale order data collected on the previous trading day.
4.3 As information on short selling may be taken into account by other market participants when making trading decisions, all market participants are expected to accurately disclose the nature of their sell orders for SGX-ST Trading Members’ compliance with SGX’s rules on short selling disclosure. SGX-ST will provide its Trading Members with a facility to correct erroneously marked sell orders.
4.4 Section 330(1) of the SFA provides that any person who, with intent to deceive, makes or furnishes, or knowingly and wilfully authorises or permits the making or furnishing of, any false or misleading statement or report to a securities exchange, futures exchange, designated clearing house or any officers thereof relating to dealing in securities shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both. In applying section 330(1) of the SFA, MAS will consider whether there was intent to deceive in respect of sell orders that had been inaccurately marked by SGX-ST Trading Members or inaccurately disclosed by market participants.

Dividend Chaser on Khor Hock Seng as CEO Aviva Asia

28Jan2013-

Aviva plc (“Aviva”) announces the appointment of Khor Hock Seng as CEO of Aviva Asia. Mr Khor, who will be based in Singapore, will take up his new role on 8 March and will join the Group Executive, reporting to Mark Wilson, Aviva CEO. Simon Machell, who has undertaken a wide range of roles with Aviva in the UK and internationally, most recently as CEO for Higher Growth Markets, will leave Aviva at the end of February.

Khor Hock Seng joins Aviva from AIA where his previous roles included Chief Executive and Managing Director of the company’s Malaysian business and Regional Executive responsible for a number of AIA's South East Asian markets. From 2008 he successfully drove the transformation of AIA Malaysia leading the business to capitalize on development opportunities, generating strong growth in value and cashflow, despite the difficult economic environment.

Mark Wilson, Chief Executive Officer of Aviva plc, said: “I am delighted that Khor is joining Aviva. He brings a wealth of insurance experience in Asia and the requisite market and cultural knowledge that are critical to success in the region. His appointment is a re-affirmation of Aviva’s commitment to our strategic markets in Asia, where we have the potential to deliver strong cash flows and consistent returns.

“I would also like to take this opportunity to thank Simon Machell for his significant contribution to Aviva and wish him well for the future.”

Commenting on his appointment as CEO of Aviva Asia, Khor Hock Seng said: “I am excited to be joining a group with the pedigree of Aviva. There is significant opportunity for the business in Asia and I am very much looking forward to working with our teams and partners to realise that potential.”

This appointment is subject to regulatory approval.

Dividend Chaser on UOB Life Maxi Dollars

I received my cheque of 16255.00 from my 5 year term 15K UOB Life Maxi Dollars. I have checked with UOB. They are no longer selling this product. So sad! This product has guaranteed returns and the returned interest is about 2%, way better than all the banks rates.

Dividend Chaser on HPH buy on Hong Kong box terminal

Hutchison Port Holdings Trust, partly owned by the world’s second-biggest container port operator, acquired a Hong Kong box terminal from DP World and a partner as it seeks to benefit from rising trade in the South China region.

Hutchison Port will pay HK$3.2 billion ($515 million) in cash to buy the entire stake in Asia Container Terminal from DP World and a unit of PSA International Pte, it said in a statement today. DP World also sold some other assets in Hong Kong to raise a total of US$742 million, the Dubai-based company said in a separate statement.

The purchase will help Hutchison Port boost capacity at Hong Kong after container volumes gained in the past two years, according to Karen Li, an analyst at JPMorgan Chase & Co. DP World is selling its assets in the city as it seeks funds needed for expansion in other markets and shore up its capital.

“Our first take of the deal is that it is positive for Hutchison as this can help resolve its capacity constraints in Hong Kong,” Li said. “Following the stronger-than-expected volume growth over past two years, Hutchison is hitting the capacity bottleneck earliest this year, if current growth pace continues.”

Hutchison Port rose as much as 0.6% to 79 US cents as of 4:10 p.m. in trading. DP World was little changed at US$13.10 as of 12:49 p.m. in Dubai. The stock has gained 12% this year.

Dividend Chaser on MGCCT jumps in 2013 Asia biggest IPO

Mapletree Greater China Commercial Trust, Asia’s biggest share sale this year, surged 11% on its first trading day as investors were attracted by returns higher than those of comparable properties.

The shares gained to $1.03 at the close of trading in Singapore after being offered at 93 cents apiece. The trust earlier rose as much as 12%. They started trading at 2 p.m. and were 29.5 times subscribed.

The property trust, including assets such as the Festival Walk shopping mall in Hong Kong, raised $1.6 billion. The offer price reflects a 5.6% yield for the year ending March 2014, compared with the 4.2% return for the Bloomberg Asia REIT Index.

“Investors are buying because of the attractive yield,” said Alan Richardson, a Hong Kong-based fund manager who helps oversee about $110 billion for Samsung Asset Management Co. “The REIT’s offered yield is higher than the average yield of Singapore REITs. And we shouldn’t forget that its assets are located in China where average yields are even lower.”

The trust is the fourth by Mapletree Investments Pte, a property unit of Temasek Holdings, Singapore’s state-owned investment company. Mapletree Industrial Trust and Mapletree Commercial Trust have advanced about 50% from their offer prices, while Mapletree Logistics Trust is up more than 70%, according to data compiled by Bloomberg.

Trusts have dominated Singapore’s IPO market in recent years as high-yielding assets gained popularity amid low interest rates.

Slowing Growth
A total of 30 REITs and property trusts were listed in the city-state with a combined value of $56 billion, making up 6% of the total market capitalization of stocks traded, Lawrence Wong, head of listings at the Singapore Exchange, said in a statement on Feb 27. “SGX also has the largest number of cross-border asset REITs in Asia,” he said.

Still, the share sale comes as China’s growth slows. Expansion in industries including retailing, transportation and banking was the slowest in five months in February, according to an official survey of purchasing managers on March 3. Gauges released March 1 pointed to manufacturing growth cooling.

Mapletree Greater China will include the Gateway Plaza office complex in Beijing, a sales document for the IPO showed.

The sale was the biggest IPO in Asia this year, followed by Nippon Prologis REIT Inc., which debuted last month in Tokyo, according to data compiled by Bloomberg. It is also the biggest for a real estate investment trust in Singapore, surpassing the previous offerings by Mapletree, the data shows.

Growing Distributions
“Our yield plus growth strategy through active asset management and asset enhancement initiatives together with potential acquisition growth in top-tier cities in Greater China, will enable stable and growing distributions to be made,” Cindy Chow, chief executive officer of Mapletree Greater China’s management company, said in a statement on March 5, referring to dividend payouts to investors.

Mapletree Greater China’s price also offers a 6.1% yield for the year ending March 2015, it said. CapitaRetail China Trust, an owner of Chinese shopping malls managed by Southeast Asia’s biggest developer, offers a 5.4% yield based on its share price, while Hong Kong’s Link REIT has a 3.3 return, data compiled by Bloomberg show.

“The REIT has a very clean structure and its shares are pushed up by positive market sentiment,” said Travis Seah, an equity analyst at Phillip Securities Pte in Singapore. “I expect them to stay at around the current price over the coming weeks.”

Cornerstone Investors
Singapore REITs have outperformed the city-state’s Straits Times Index this year, returning 5.3% compared with a 4.2% gain in the benchmark measure.

Mapletree Commercial Trust completed a US$754 million ($941 million) initial share sale in April 2011 and Mapletree Industrial Trust raised US$714 million in October the previous year. Mapletree Logistics Trust raised US$144 million in 2005.

Mapletree Investments will own about a third of its newest REIT after the sale.

About 953 million of the 1.7 billion shares were sold to so-called cornerstone investors, including AIA Group and Morgan Stanley. Also among cornerstone investors are Henderson Global Investors, Myriad Asset Management and Norges Bank Investment Management, which runs Norway’s sovereign wealth fund, according to the sales document.

Citigroup Inc., Goldman Sachs Group Inc., DBS Group Holdings and HSBC Holdings Plc managed the offer.

Dividend Chaser on Dow Jones All time High

NEW YORK: The Dow Jones Industrial Average powered to an all-time record high Tuesday exactly four years after hitting bottom in the worst economic crisis since the Great Depression.
After more than doubling its value in a steady march upward since March 2009, the Dow assaulted the record from the opening bell and ended the day at 14,253.77, nearly 90 points above the former closing high on October 9, 2007.

The broader index of the US markets, the S&P 500, also settled higher, but at 1,539.79 remained 1.6 percent below its all-time trading high.
It was a dramatic rebound that came even as the broader economy continues to struggle to leave behind the 2008-2009 recession, and the government in Washington battles over how to trim its massive deficit, a legacy of the economic crisis.
"It's been a good economy, accompanied by good earnings, coupled with very low interest rates. And no sign that it's over," said Hugh Johnson, chairman and chief investor officer at Hugh Johnson Advisers.

"And it's the only game in town," Johnson added, referring to the low returns on other investments.

The Dow, which weighs the stock prices of 30 top companies in a range of industries, and been a key gauge of health in US capital markets for 117 years, was last at these levels in October 2007, the virtual eve before a financial storm engulfed markets.

A bursting of the housing market and stocks bubble unleashed the deepest recession since the 1930s.

In the crash, the Dow plunged 54 percent over 15 months, the impact wiping out the savings of millions and feeding a crisis in the financial industry that forced the government to bail out banks and two major automakers.
But the rebound of company earnings coupled with low Federal Reserve interest rates have fed the recovery in the stock markets.

Also helping has been a set of recent economic data that has been generally solid, if unspectacular.

It has raised new questions of whether a fresh, dangerous bubble is building in capital markets, an issue that has been debated in recent meetings of Fed policy makers.
But analysts mostly dismiss that, and describe rising, but cautious, confidence in the real economy.

Compared with the economic conditions in 2007, today's market looks stronger, said Art Hogan of Lazard Capital Markets. For one thing, corporate balance sheets are robust.
"The economy is in a better place," said Hogan. "The last time we were here, the economy was about to fall off a cliff."

Greg Peterson, director of research at Ballentine Partners, said the valuation multiples of earnings are low compared with historic norms.

"This high is imminently reasonable," Peterson said. "It's not a bubble.

Tuesday's surge came on the heels of rising equity markets in China and throughout Europe, said Chris Low, chief economist at FTN Financial.

The rally gained additional support mid-morning from a pickup in US services sector growth in February, according to the ISM purchasing manager survey.

Still, recent economic reports suggests that the Dow is outpacing the economy as a whole.

Last week, the US Commerce Department reported that fourth-quarter economic growth came in at just 0.1 percent, and the unemployment rate has been stuck around 7.9 percent.

Some analysts see the Dow lingering in the current range until the real economy takes off with more force. Low predicted most equities would have a hard time growing revenues much beyond two percent in the near term.

"There is very low revenue growth in the S&P 500," Low said. "It is still positive, but it's not very fast."

But Paul Edelstein, an economist at IHS Global Insight, offered a more optimistic outlook.

"There's a lot of reasons for stocks to move higher" such as higher earnings and supportive monetary policy, Edelstein said.

- AFP/fa

Dividend Chaser on Iphone5S

TAIPEI — According to Analyst Kuo Ming Chi of Financial Services Group KGI, who has had a notable record in predicting Apple hardware launches, the successor to the iPhone 5 will be announced in June and launched in July.

Citing Mr Kuo, Apple blog Appleinsider said Monday the Cupertino-based company will launch the flagship iPhone 5S and a less expensive version made out of fibreglass and plastic.

Mr Kuo also said the iPhone 5S will have a faster A7 SoC, a “Smart Flash” that uses white or yellow LEDs to ensure high-quality photos, and a fingerprint security chip from AuthenTec, which was acquired by Apple.

The 5S will continue to use the same shell as the current iPhone 5 but will have a slightly larger 1600mAh battery.

The New York Times also said on Monday the iPhone’s biggest competitor, Samsung’s new Galaxy S IV could include an eye-scrolling feature, which would let users read text without using their hands.

The Galaxy S IV is thought to be unveiled at an event in New York next week. AGENCIES

Dividend Chaser on STXOSV becoming Vard

STX OSV BECOMES VARD

Singapore, 5 March, 2013 – STX OSV Holdings Limited, one of the major global
designers and shipbuilders of offshore and specialized vessels, is pleased to
announce that the STX OSV Group of companies will adopt the new brand name
VARD. The adoption of the new name, logo and brand identity follows the sale of
STX Europe’s majority stake in the company to Fincantieri Oil & Gas, as previously announced on 23 January 2013.


Being derived from the Norwegian word “varde”, which refers to a small tower of
stones used since ancient times as a navigation mark along the coast to guide
ships, the name embodies the Company’s maritime heritage and long history in
shipbuilding. It also symbolizes its ambition to lead the way in the industry, reflecting VARD’s size, position and goal to be a preferred partner for technologically advanced solutions in the global offshore support vessel market.

Chief Executive Officer and Executive Director of VARD, Roy Reite, said, “I am
excited to announce that VARD will be our new name. It conveys a sense of stability
and strength, relevance and flexibility. More importantly, it reflects our long-standing Norwegian heritage, as well as our leading position within the offshore and specialized vessels industry globally. From the very start of the project, the objective was to find a name that is short, solid, innovative and maritime in its tone. VARD met all of these criteria.”

The new company name is currently being implemented across all the subsidiaries
of the VARD Group of companies worldwide. A proposal for a new name for the Group holding company, STX OSV Holdings Limited, will formally be tabled for resolution at the upcoming Annual General Meeting in April.

Dividend Chaser on Family Financial Budget

Planning 5 steps
1. Net Income (Salary - CPF contribution)
2. Savings (apportion of salary)
3. Investment
4. Expenses (fixed, variable)
5. Bad mood fund (pamper oneself)

Executing Plan
1. 3 different bank accounts (salary, savings, fixed expenses account) where savings can be used for investment and fixed expenses account using giro or cheque; salary account used for transfers)
2. Internet banking

Dividend Chaser on Penny Stock Bubble Burst

Penny stocks are down alot. Markets seem to be going for a big correction.