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  • Goodbye Stormy Seas As Moller-Maersk Lifts Outlook, Eyes Acquisitions
    In what is seen as a positive development in the Shipping world after month's of stormy weather, Shipping and oil group AP Moeller-Maersk (OTCPK:AMKAF) hiked its 2010 profit forecast to around $5bn as it posted forecast-beating profits for nine months, driven by cost cuts and higher freight rates and oil prices while the company's port operating arm is considering several acquisition opportunities in Asia and emerging nations as the shipping industry finally recovers from its long crisis period.

    According to a Bloomberg report , A.P. Moeller-Maersk's container-terminal arm may invest in rail, truck or barge operators in China and India as Asian trade growth outpaces demand in the U.S. and Europe. APM, one of the world's top 4 port operators, has prioritized China, India and Vietnam as the three main countries to expand its business. Last year, APM Terminals handled 12.3 percent of all cargo going through container shipping ports. APM currently the third-largest unit in the Maersk conglomerate after Maresk Line, the world's largest container shipping company, and the petroleum unit Maersk Oil.    

    Moller-Maersk Quarter Result Highlights: Net profit at the group, which owns the world’s biggest container shipping company Maersk Line, totaled 23.8bn Danish crowns ($4.4bn) in January-September against losses of 3.9bn in the same period last year. The result beat an average expectation of a profit of 21.4bn crowns in a Reuters poll of analysts whose estimates ranged from 19.9bn to 22.9bn. Average freight rates, including bunker surcharges, were up 34% in the nine months to end-September from the same period last year, and volumes 7% higher, Maersk said.

    Earlier, Moller-Maersk, Denmark’s biggest company sold bonds for the first time last year and held the biggest share sale in its 106-year history. The company lifted its 2010 profit forecast last week for the third time in four months as freight rates and trade volumes recover.

    Container Growth: Moller-Maersk, the Company that operates more than 50 terminals in 34 countries increased the number of containers it handled in the first nine months of this year by 3 percent to 23.5 million 20- foot boxes. The container industry, a key indicator of world economic growth, was considered in a much healthier state than the oil tanker and dry bulk markets, which were plagued by oversupplies of vessels and limited demand. Demand for container port handling was expected to increase by 7 percent in 2015 in emerging markets, surpassing the 2 percent increase seen in developed countries.  

    Asia-U.S. shipping volumes have surged in the past two quarters and may rise from 6 percent to 9 percent next year, the group said, as the economic pick-up stokes U.S. demand for Chinese-made furniture, toys and clothing. The shipping lines plan to seek higher rates after the global recession hammered trade demand, causing industry wide losses.

    Testimony of the reviving cargo demand, A.P. Moeller Maersk, the world’s largest container line, and 14 other shipping companies have agreed to seek rate increases of $400 per 40-foot box on Asia-U.S. west coast routes next year as the rebounding global economy revives cargo demand.

    Disclosure: No Positions
    Nov 25 4:50 AM | Link | Comment!
  • No Power Behind Suntech Power's Q3 Results
    China based Suntech Power Holdings Co. (NYSE:STP) that produces industry-leading solar products for residential, commercial as well as industrial utility applications, has witnessed a disappointing quarter as third-quarter profit fell short of Wall Street forecasts mainly due to the rising higher costs for silicon. At Suntech, net income for the third quarter climbed to $33.1 million, or 18 cents per American depository share, from $30 million, or 16 cents per ADS, a year earlier while most analysts were expecting an average forecast of 23 cents per ADS.

    Q3 Results Overview: Total net revenues for the third quarter of 2010 were $743.7 million, an increase of 19.0% from $625.1 million in the second quarter of 2010 and an increase of 57.2% from $473.1 million in the third quarter of 2009. Net other expense was $74.1 million in the third quarter of 2010, compared with net other income of $24.1 million in the second quarter of 2010. The net other expense in the third quarter of 2010 was mainly due to mark to market losses from hedging activities. The net impact of losses related to hedging and foreign exchange fluctuations was approximately $32.1 million in the third quarter of 2010. Equity in earnings of affiliates in the third quarter of 2010 was $23.1 million compared to equity in loss of affiliates of $100.6 million in the second quarter of 2010. For the third quarter of 2010, consolidated gross profit was $122.0 million and gross margin was 16.4% compared to consolidated gross profit of $113.9 million and gross margin of 18.2% in the second quarter of 2010 while operating expenses for the third quarter of 2010 decreased to $59.5 million compared to $132.9 million in the second quarter of 2010.

    Future Plans: Suntech, China's largest maker of the equipment that turns sunlight into electricity also said it plans to acquire 375 megawatts of polysilicon ingot and wafer slicing capacity for $127 million in a deal expected to add to earnings immediately after it closes. In the fourth quarter of 2010, Suntech expects at least 10 percent sequential growth in shipments.  Suntech is targeting to ship more than 1.5GW of solar products in 2010, representing year-over-year growth of at least 113%. Suntech had earlier announced it is in the process of integrating 375MW of ingot and wafer slicing capacity in China. The wafer manufacturing capacity is being spun off from a subsidiary of Glory Silicon Technology Investments (Hong Kong) Limited, in which Suntech holds an equity investment.

    Trends: While solar demand is expected to reach record levels this year, many analysts expect ever-increasing capacity to put pressure on prices next year.

    As highly refined silicon panels may never be as inexpensive or productive as fossil fuels. Without continued government subsidies, solar could die sooner rather than later, some of the other attractive Solar Power Alternate Investment Options:

    Solar ETFs

    Market Vectors Solar Energy (NYSEARCA:KWT): This ETF focuses on mid cap securities, which make up more than half of the fund’s total assets. KWT’s top holdings are Renewable Energy Corp. and MEMC Electronic Materials, which combine to make up 22.6% of the fund’s total assets.

    KWT Top Ten Holdings

       1. First Solar, Inc. (NASDAQ:FSLR): 12.76%
       2. MEMC Electronic Materials (WFR): 9.37%
       3. Suntech Power Holdings Co., Ltd. ADR (STP): 8.48%
       4. Trina Solar Limited ADR (NYSE:TSL): 8.27%
       5. SMA Solar Technology AG (S92): 4.80%
       6. Yingli Green Energy Holding Company, Ltd. (NYSE:YGE): 4.62%
       7. SolarWorld AG (SWV): 4.52%
       8. Gintech Energy Corporation (3514): 4.38%
       9. JA Solar Holdings Co., ADR ADR (NASDAQ:JASO): 3.89%
      10. SunPower Corporation (SPWRA): 3.54%

    Expense Ratio: 0.65%

    Claymore/MAC Global Solar Index (NYSEARCA:TAN):
    TAN offers investors a greater level of exposure to small cap securities by investing slightly more than two-thirds of its total assets in small cap firms. Its largest holding is First Solar, which makes up 10% of the fund’s total assets.

    TAN Top Ten Holdings

       1. First Solar, Inc. (FSLR): 9.93%
       2. Meyer Burger Technology AG (MBTN): 5.31%
       3. Trina Solar Limited ADR (TSL): 5.22%
       4. Suntech Power Holdings Co., Ltd. ADR (STP): 4.94%
       5. MEMC Electronic Materials (WFR): 4.89%
       6. Renewable Energy Corporation ASA (REC): 4.74%
       7. SolarWorld AG (SWV): 4.68%
       8. Yingli Green Energy Holding Company, Ltd. (YGE): 4.68%
       9. SMA Solar Technology AG (S92): 4.57%
      10. SunPower Corporation (SPWRA): 3.74%

    Expense Ratio: 0.65%

    Disclosure: No Positions
    Nov 18 6:37 AM | Link | Comment!
  • High Copper Prices Drive Imperial's Impressive Quarter
    Copper has been in the news for all the right reasons from an investment point of view. Supply shortages have been a major factor behind the surge in copper prices due to a combination of falling ore grades in major producing nations, labor problems and project delays. Higher copper price outlook is not just helping investors and traders unleash some wealth creating opportunities but is also driving mining majors as Canadian miner Imperial Metals Corporation (OTCPK:IPMLF) posted better third-quarter results, helped mainly by higher copper prices. 

    Imperial Metals Quarter Results: Canada based, Imperial Metals Corporation's (OTCPK:IPMLF) results for the July-September quarter, net income was C$7.1 million, or 19 Canadian cents a share, up from C$4.6 million or 14 Canadian cents a share a year ago. On an adjusted basis, the company earned 35 Canadian cents a share. Revenue rose 28 percent to C$68.7 million. Copper price increased during the quarter, resulting in a positive revenue adjustment of C$8.8 million. Meanwhile the company's shares have gained 55 percent in value since operations at its Huckleberry mine in northern British Columbia resumed in August, after being halted a week earlier.  They were down 13 Canadian cents at C$24.26 in early morning trade on Monday on the Toronto Stock Exchange.  

    LME: Benchmark copper prices on the London Metal Exchange hit a record high of $8,966 on November 11, a gain of more than 45 percent since early June when markets were fretting about Greece and sovereign default in euro zone countries.

    Copper Outlook 2010 And Beyond

    Long Term Upside: Despite some near term weakness with respect to Chinese demand, the overall physical fundamentals for the copper market appear very strong. In fact Thomson Reuters has quoted Hermes Fund Managers as saying that copper prices are set to hit new records over coming years as supply shortages meet strong demand from developing market consumers and investors seeking safety in hard assets.

    Base Metals Projections: World Market Pulse analysts believe that new investor interest in products such as commodities exchange-traded funds will also boost base metals demand and prices from 2010 until 2015. Analysts at consultancy CRU Group are also bullish as evident from its 2014 against 2010 commodity price performance forecast thermometer, CRU sees gains of 15 percent or more for copper and tin. During this same period, the group also sees 0-15 percent gains for lead, zinc and aluminium, and 0-10 percent for nickel.

    Copper ETFs Investment Options include: Copper ETFs

    ISE Global Copper Index Fund Profile (NASDAQ:CU): The index is a modified linear weighted index designed to track public companies that are active in the copper mining industry based on analysis of revenue derived from the sale of copper.

    Expense Ratio: 0.70%

    iPath DJ-UBS Copper Total Return Sub-IndexSM ETN (NYSEARCA:JJC): The index includes the contract in the Dow Jones-UBS Commodity Index Total Return that relates to a single commodity, copper (currently the Copper High Grade futures contract traded on the COMEX).

    Expense Ratio: 0.75%

    PowerShares DB Base Metals Fund (NYSEARCA:DBB): The Index is a rules-based index composed of futures contracts on some of the most liquid and widely used base metals - aluminum, zinc and copper (grade A). The index is intended to reflect the performance of the industrial metals sector.

    Expense Ratio: 0.75%

    Disclosure: No Positions
    Nov 17 5:47 AM | Link | Comment!
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  • There is a breakout and a good long setup for DGWIY.PK a chinese water company Could be a good buy at 27.07
    Mar 31, 2010
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