RBS (RBS):Q1 pretax loss of £1.4B, widening from a £116M loss in Q1 2011. Much of the loss came from changes in the valuation of RBS' debt. Operating profit of £1.2B vs. £800M consensus. Sets aside an extra £125M for PPI claims. Will repay next week the last of its state emergency loans and resume dividend payments on preferential shares. Shares +2.9% in London. [View news story]
If you are interested in RBS common stock or preferred stock, Great article by Reuters
Actually RBS needs to pay preferred holders first, before resuming paying dividends on Common stockholders, but there are many challenges ahead: 1.first they plan to payoff part of the emergency loans first provided by US FED and B of England. 2 resume paying preferred dividends suspended by EU financial commission, 3. Potential losses from financial impact of Southern European countries. 4 RBS need to raise the capital level. 5. UK government will control the bank until RBS stock goes up above the government purchase price, then exist the control of the Bank. Politicians who supported RBS bail out are not willing to show losses on government investment, so it will be probably another year and half to 2 years, before RBS can assess the financial condition before they are able to pay common stock holder dividends.
Recent weakness of OVTI stock was due to speculation that Apple may replace OVTI for other supplier for next generation of Ipad. In your article, Sony and Samsung are potential competitors, but Apple is not likely using Samsung as supplier, due to Samsung is direct competitor of Apple's Ipad. Also , Sony is also producing I pad like products, so I would not consider Sony or Samsung to replace Omnivision products. During last quarterly update, company did not get indication from Apple may switch to other suppliers. So far Omnivision so far has better products than competitors.
The VIX Can't Stay Elevated Forever [View article]
Vix spot level 39, Aug 35.3, Sep 27.65, Oct 27.08 Nov 26.6, futures market already discounted diminishing vol level, VXX. Investors need to figure out whether future decrease is more than current market's discount. Acutually VXX benefits from backwardation, and XIV which is shorting the VIX, is at disadvantage, more info, other authors clearly explained the relationship between futures and spot.
The VIX Can't Stay Elevated Forever [View article]
Current VXX Sep near money implied volatility is 105 to 107% level, option premium is very expensive, the better way to play would be put spread, or ratio put spread.
Talk of a Chinese Equity Bubble is All Relative [View article]
I have not seen any Chinese company was penalized for accounting irregularities, except there was one steel company announced the deal with Angola goverment which later turn out to be extra ordinary exaggeration. Is that mean Chinese accountants/auditors, or accounting system are better than US?, or lack of supervision?
Based on CCTV 9 Biz today interview, former deputy CEO of Shanghai stock exchange Fang Winghai recommended investors be cautious, and get out of stocks gradually, citing new investors do not know how to value stocks, and valuation is not sustainable.
based on CCTV-9 Biz today, during the month of April, 5 million new brokerage acccounts were open, the number is more than last two years new accounts combined.
US Investors Not Feeling the Chinese Stock Market Sizzle [View article]
Thank you for your contribution.
www.etfconnect.com/sel..., The purpose of my article, was that most of investors when they bought the China fund, they expect Chinese market return, but as you rightly point out, there are early CEFs and most of mutual funds perfer invest mostly in HK, or Taiwan companies due to better accounting standards, regulation, and transparancy, instead of mainland Chinese companies, PowerShare ETF they invest exclusively ADRs. Morgan Stanely CAF, it invest mainland Chinese Companies A shares, but due to fluctuation of premiums to discount of -9.75% currently, investor did not gain as much as SH index.
I speak English, Korean, and Chinese. End of December, I watched Chinese news program which featured a story about 70 year old lady who was hit by truck, so the police tried to call the ambulance, but she insisted that she did not need ambulance service, because she urgently needed to get to brokerage house to purchase stocks. People massively withdrew their life savings to purchase stocks especially low price, speculative stocks. People waiting in line four to five hours in the brokerage houses to open accounts, people quit their regular jobs, and huddle around price quote TV screens in the brokerage houses. Sounds familiar? US 2000 Tech bubble is repeating in China right now. No gurantee how long this rally will continue, but my expectation is that a lot of small companies will go under with people's life savings.
Famous quote by Jesse Livermore: "When the shoeshine boy gives me stock tips, I know the stock market has topped."
RBS (RBS): Q1 pretax loss of £1.4B, widening from a £116M loss in Q1 2011. Much of the loss came from changes in the valuation of RBS' debt. Operating profit of £1.2B vs. £800M consensus. Sets aside an extra £125M for PPI claims. Will repay next week the last of its state emergency loans and resume dividend payments on preferential shares. Shares +2.9% in London. [View news story]
Great article by Reuters
http://bloom.bg/K1sNxY
Actually RBS needs to pay preferred holders first, before resuming paying dividends on Common stockholders, but there are many challenges ahead:
1.first they plan to payoff part of the emergency loans first provided by US FED and B of England.
2 resume paying preferred dividends suspended by EU financial commission,
3. Potential losses from financial impact of Southern European countries.
4 RBS need to raise the capital level.
5. UK government will control the bank until RBS stock goes up above the government purchase price, then exist the control of the Bank. Politicians who supported RBS bail out are not willing to show losses on government investment, so it will be probably another year and half to 2 years, before RBS can assess the financial condition before they are able to pay common stock holder dividends.
Seeing Value In Omnivision [View article]
In your article, Sony and Samsung are potential competitors, but Apple is not likely using Samsung as supplier, due to Samsung is direct competitor of Apple's Ipad. Also , Sony is also producing I pad like products, so I would not consider Sony or Samsung to replace Omnivision products. During last quarterly update, company did not get indication from Apple may switch to other suppliers.
So far Omnivision so far has better products than competitors.
Disclosure long at $17.08 on Sep 6th 2011
The VIX Can't Stay Elevated Forever [View article]
The VIX Can't Stay Elevated Forever [View article]
Magazine Covers: The #1 Contrarian Indicator? [View article]
Talk of a Chinese Equity Bubble is All Relative [View article]
China Direct: The Undervalued Newcomer [View article]
Has anyone read their SEC filings?
US Investors Not Feeling the Chinese Stock Market Sizzle [View article]
12-15-06 The Morgan Stanley China A Share Fund, Inc. Will Not Make a Year-End Distribution for 2006 (BWI)
Is the Chinese Market Overvalued? [View article]
Is the Chinese Market Overvalued? [View article]
US Investors Not Feeling the Chinese Stock Market Sizzle [View article]
www.etfconnect.com/sel..., The purpose of my article, was that most of investors when they bought the China fund, they expect Chinese market return, but as you rightly point out, there are early CEFs and most of mutual funds perfer invest mostly in HK, or Taiwan companies due to better accounting standards, regulation, and transparancy, instead of mainland Chinese companies, PowerShare ETF they invest exclusively ADRs. Morgan Stanely CAF, it invest mainland Chinese Companies A shares, but due to fluctuation of premiums to discount of -9.75% currently, investor did not gain as much as SH index.
Why I'm Long The China ETF [View article]
Why I'm Long The China ETF [View article]
Famous quote by Jesse Livermore: "When the shoeshine boy gives me stock tips, I know the stock market has topped."