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  • The Avanti Group Comment On Baidu's $1.9 Billion Acquisition Of Mobile App Platform

    The Avanti Group are closely following the Chinese search engine, Baidu, as they settle on a $1.9 billion takeover of China's second largest mobile application platform, 91 Wireless.

    The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to China's largest and most profitable search engine, Baidu, having further secured its stake in the country's mobile computing sector by buying out all shares in the hugely successful appstore, 91 Wireless.

    With current figures putting the number of mobile internet users in China at well over 550 million, expected to grow to over 750 million over the next year, this acquisition has put Baidu ahead of its competitors in a highly profitable market. Annual revenue from the mobile internet market was recorded at 150 billion Yuan ($24 billion) in 2012, analysts predict that the figure will double to over 300 billion Yuan ($48 billion) by 2014.

    Baidu's revenue comes almost exclusively from its function as a search engine, accounting for as much as 98 percent of the company's takings, and draws over 82 percent of traffic nationwide from searches made through PCs and laptops. Baidu Inc. were previously struggling in attracting traffic through its mobile app, so the purchase of the country's second largest app platform serves a dual purpose, as well as incorporating existing users from 91 Wireless, the experience and expertise in mobile application development will push Baidu to the forefront of the market.

    "This latest acquisition by Baidu will play a pivotal role in the future of the company. Already far ahead of competitors in terms of revenue generated through PC internet searches, Baidu will now also be one of the major players in the rapidly growing, mobile internet market," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    Since the company was founded in 2000 it has seen unprecedented growth, with the first quarter of 2013 recording a 40 percent increase in total revenue and 5.6 percent increase in operating profit, from the same time period in 2012. This latest corporate acquisition, the company's largest to date, puts the company's market value at $29.7 billion, putting it well ahead of rival internet giants such as Yahoo, who are currently valued at $24.3 billion. While Baidu had previously relied heavily on searches through desktop computers and laptops, it already attracts 8 percent of China's mobile searches, which equates to more than 1 million active users using the company's flagship app daily. With 91 Wireless on board, conservative projections suggest that by 2014 Baidu is likely to have secured over 40 percent of mobile traffic.

    "This takeover has given Baidu a serious foothold in this highly competitive market, all the evidence suggests that, thanks largely to the company's strategy of aggressive investment, Baidu is set to establish a near monopoly on internet searching within China," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.

    Aug 14 10:55 PM | Link | Comment!
  • The Avanti Group Oil Affected By QE

    The Avanti Group comments as the Federal Reserve adjusts its finances there is considerable scope for financial gains created from the uncertainties in the global oil market.

    The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe is closely following the developments as to how the tapering of the Quantitative Easing program that is currently in process by the Federal Reserve in the US, is resulting in indications that oil prices will remain volatile for the remainder of 2013. This is apparent from the global economic uncertainty that is currently evident, especially in Europe and the People's Republic of China.

    "What we are especially interested in looking at is how the development of OPEC's strategy transpires and how they intend to manage keeping the price of crude oil above the USD $100 mark, especially considering the recent increases of output levels of crude by countries that are not part of OPEC the Organization of Petroleum Exporting Countries," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    It is generally speculated amongst the financial market traders worldwide that oil prices will remain high for the remaining half of this year, as it is a matter of course that consumers in the West typically take vacations in the third quarter of the year for the summer holiday period in the Northern Hemisphere. An additional factor to surge of use as the demand for Oil usually increases higher during hurricane season in the Atlantic region in the following quarter entering the winter season.

    Approaching the end of last year Dubai's price for a barrel of crude oil fetched USD $107 gaining in January and February of this year reaching a high of USD $113 per barrel, prices eased following the unusually slow process of Italy forming a government after their general election and concerns of Fed tapering amongst the European debt crisis.

    "To add to this the global economic situation then worsened as the second largest bank in Cyprus was expected to collapse thereby increasing concerns about the real state of the European debt crisis. This was further exacerbated by an economic slowdown in China.

    "We have a responsibility to constantly provide solutions to keep our clients' portfolios balanced so, knowing where and when, how and why oil and other commodities will rise and where they will fall allows our teams of advisors to direct investment effectively and provide the required skilled management advice for our associates funds," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.

    Aug 08 8:35 AM | Link | Comment!
  • The Avanti Group Japan's Demand For Gold Exceed Imports

    The Avanti Group are advising clients on the increasing demand for gold, as Japanese increase their purchasing volumes to compensate for weakening yen, potentially putting strain in the country's holdings.

    The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor's attention to the increasing demand in gold sales throughout Japan.

    "There's a big consensus from individual investors in Japan that are looking to introduce larger quantities of gold into their investment portfolios as an asset as well as security for the future, with an increase in investors wanting to use gold partly to hedge against their yen-based assets such as stocks and properties," said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    Tanaka Kikinzoku Kogyo K.K., is Japan's largest trader in bullion, are confident that sales to Japanese investors may surpass purchases this year for the first time since 2004 as the yen's deflated value and low gold price give rise to buying interest. The decline into a bear market in April encouraged demand for jewelry and coins around the world and physical demand increases for wedding seasons and religious festivals in Asia, including India and China, the biggest buyers throughout the second half of the year.

    Following unprecedented monetary stimulus as part of Japan's efforts to end deflation 'Abenomics' the yen depreciated 14 percent against the U.S. dollar. Gold purchased in U.S. dollars dropped 27 percent whilst the commodity fell 15 percent in yen this year resulting in an increase in gold imports to Japan that more than doubled to 7,686 kilograms in January to May, from 2,994 kilograms a year earlier, according to finance ministry data.

    "Whilst global investors are taking advantage of the weakening yen, investing in sound cheap positions within Japan, locals investors within Japan are looking to place their money into solid tangible investments, currently gold with the added benefits exchange ratio to investment," concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

    The Avanti Group is an equity research house providing research and analysis outsourcing solutions for institutional financial traders worldwide, founded in early 2003.

    Aug 05 5:38 AM | Link | Comment!
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