Here Comes The Perfect Storm For The U.S. Economy [View article]
People determine meaning, not words in a book. Don't expect to find common ground in a debate about the meaning of a word, but rather in a conversation committed to a common understanding of what is meant by the people using it.
As the famed communication theorist, Marshall McLuhan, once said, "Propaganda ends where dialogue begins."
Makes no sense 007, credibility is enhanced, not reduced. You've got to put out the fire before you can rebuild the house. With the financial crisis in Spain worsening and effective debt going up as a result (Jul 26 post by Hammer) it was sensible to scrap payout for 2012.
It recognizes that the previous dividend cuts were too timid. Telefónica can now cope with being shut out of bond markets for all of this and next year. Telefónica may need to put dividends on hold for longer if the crisis goes on. Also better for shareholders in the long run.
<Moody's : Telefonica's dividend suspension is credit positive, but rating remains on> review for downgrade.>
China Medical Technologies (Update): Dude, So That's What You Did With My Company [View article]
According to Orange Count Superior Court documents, dated July 13 2012, CMEDY now owns only 40% of its own Operating Companies, with which it has no possibility of paying off the $400 million debt that its interest default has now made entirely due.
Paragraph 15. The 3 Operating Companies, Yuande, GP Medical and Bio Ekon should certainly be familiar to you from your due diligence before buying CMED. They're the (formerly) wholly owned subs that actually have assets and make medical things.
Paragraph 33. Notice that 60% of each of those Operating Companies have been "sold" to Chairman of the Board and CEO Xiaodong Wu's companies and friends, leaving CMEDY owning only 40% of its own operating companies.
You're probably thinking, OK, but maybe Wu got a great price. Unfortunately, since he was also the buyer, Wu-the-seller had no motivation to get a decent or even a fair price. Look at paragraph 35. The purchase price was apparently a song -- the total purchase price totaling well below the earlier purchase price of only some of those assets. On top of the giveaway price, the buyers (Wu's fronts) only had to pay 5% of that up front.
Unless the Complaint is wrong, then Wu's given away 60% of the value of CMEDY, while leaving the entire $400 million debt.
Worse, by defaulting on the interest payments, Wu's triggered the default provisions, meaning the entire $400 million dollar principle is now entirely due (plus the interest, plus the penalties, plus the default fees, etc.).
If the allegations in the Complaint are correct, then the conclusion drawn in paragraph 41 is pretty inescapable:
"41. As a direct consequence of Wu's conduct, CMED has been rendered insolvent, and CMED's assets have been intentionally wasted, dissipated and diverted away from CMED's creditors and shareholders."
China Medical Technologies made a truckload from institutional and retail investors who believed in its tales of rapid growth and increasing profits, raising $750 million in stock and bonds during the last 5 years.
It's totally unclear how this story will pan out, and why AER Advisors has been buying 10 million shares of China Medical stock for William and Peter Deutsch in recent months.
What we do know is that liquidation proceedings have begun in the Cayman Islands to hand over whatever remains to angry bondholders.
Retail investors, just stay away. Let the big guys sort it out. Investing and speculating are not the same!
Here's What's Going On With Telefonica Right Now, And No, It's Not All Bad [View article]
Why Spain's Economic Plight Is Nothing Like Greece's
Consider, for example, the fact that Greece’s public debt equals 165% of its GDP, while Spain’s stands at 68%, well below the Eurozone average, and even lower than those of Germany and France. This fact alone places Greece and Spain in very different places when it comes to balancing public accounts. Compared with the somewhat surprising attitude of Greek politicians, neither of the Spanish governments that have led the country since the crisis began—the socialists under Jose Luis Rodríguez Zapatero and the popular party led by Mariano Rajoy—have considered the option of waiting for their European partners to sort out their domestic problems. Quite the opposite, in fact. Both have taken action to balance public accounts. Moreover, Spanish society has just given its vote to a government whose key commitment is precisely to accelerate its economic reform program. Neither Spanish politicians nor Spanish citizens expect others to resolve their country’s problems for them.
Transocean's Value Proposition: Leading Driller Stays Afloat By Going Deepwater [View article]
Long RIG. Look at this article on Bloomberg today!:
Transocean Biggest Winner From 28% Jump in Oil Rig Rates: Energy
By David Wethe - Mar 28, 2012 1:00 AM GMT+0200
Transocean Ltd. (http://bit.ly/oeANwU), the deep-water rig owner that’s trailed competitors in the stock market since its equipment burned and sank in the 2010 Gulf of Mexico oil spill, is set to benefit the most this year from a surge in demand.
Rental rates for ultra-deep-water rigs, the world’s most complex and expensive drilling vessels, should climb 28 percent to a record $714,000 a day by the third quarter from about $560,000 currently, according to estimates by Ole Slorer, an analyst at Morgan Stanley who dubs the move a “super spike.”
Transocean, the world’s biggest owner of offshore rigs, will have more units available for leasing than rivals through 2013. That positions the Swiss company better to supply vessels that can cost $600 million each to explorers from Exxon Mobil Corp. (http://bit.ly/tVVFv0) to BP Plc (BP/) that are leading the search for crude miles below some of the world’s deepest oceans.
“Our long-term outlook for ultra-deep-water is very, very robust,” Transocean Chief Executive Officer Steven Newman told investors March 26 at the Howard Weil Energy Conference in New Orleans. Demand can only grow as explorers must book rigs further into the future to get their wells drilled, he said.
Transocean's Deepwater Expedition Contract Bodes Well For Drilling Company Day Rates [View article]
Long RIG. Look at this article on Bloomberg today!:
Transocean Biggest Winner From 28% Jump in Oil Rig Rates: Energy
By David Wethe - Mar 28, 2012 1:00 AM GMT+0200
Transocean Ltd. (http://bit.ly/oeANwU), the deep-water rig owner that’s trailed competitors in the stock market since its equipment burned and sank in the 2010 Gulf of Mexico oil spill, is set to benefit the most this year from a surge in demand.
Rental rates for ultra-deep-water rigs, the world’s most complex and expensive drilling vessels, should climb 28 percent to a record $714,000 a day by the third quarter from about $560,000 currently, according to estimates by Ole Slorer, an analyst at Morgan Stanley who dubs the move a “super spike.”
Transocean, the world’s biggest owner of offshore rigs, will have more units available for leasing than rivals through 2013. That positions the Swiss company better to supply vessels that can cost $600 million each to explorers from Exxon Mobil Corp. (http://bit.ly/tVVFv0) to BP Plc (BP/) that are leading the search for crude miles below some of the world’s deepest oceans.
“Our long-term outlook for ultra-deep-water is very, very robust,” Transocean Chief Executive Officer Steven Newman told investors March 26 at the Howard Weil Energy Conference in New Orleans. Demand can only grow as explorers must book rigs further into the future to get their wells drilled, he said.
Impending Bidding War For ING's Asian Life Insurance Arm [View article]
Capital One - COF - paid $6.3 billion cash and 54.000.000 Capital One shares to ING for the ING Direct deal. ING is now the largest shareholder in COF with a 9.7% stake!
Impending Bidding War For ING's Asian Life Insurance Arm [View article]
Good stuff, Long China Life - LFC - and ING. Will take a good look at AIA Group ADR - AAGIY !
A new report published by prominent international ratings agency Moody’s Investors Service this week urges European insurance companies to expand their business eastwards into Asia, as their collective presence in the region at present is too limited to affect their overall financials. This current situation, Moody’s explains, has a credit-neutral effect on insurer credit profiles, but if these same companies can expand profitably in the Asia Pacific region in the coming years, credit implications might turn positive over the longer-term.
...
In the conclusion, Moody’s explains that Asia ex-Japan is by now means a monolithic, uniform insurance market, and that certain countries in the region will continue to present more attractive growth opportunities to European insurers than others in the short-to-medium term. While Asia collectively certainly is a large and fast-growing insurance market, international insurers are still likely to find large variations in business attractiveness and ease of access across the continent’s assorted economies. According to Moody’s analysis, Vietnam, Indonesia, Thailand and the Philippines offer the highest level of potential for foreign insurers in Asia at present, despite the notable risks often associated with emerging insurance market development and evolution.
The findings in Moody’s study reflect similar conclusions made by other agencies earlier this year. In Deloitte’s 2012 Global Insurance Outlook, the consulting firm agrees that the most attractive avenue for international insurers going forward could be emerging insurance markets, which offer faster-growing economies and rising incomes for more sustainable premium growth opportunities.
Apple Topping Out? Options Market Overheated [View article]
This is a pretty funny article! You have no fundamental analysis to short other than "one was able to walk in and purchase an iPad 3 on Sunday at the Grove shopping mall in Los Angeles"? Maybe you can also look at this AAPL (and Samsung) article I just also read here on SA http://bit.ly/GAc4Oy . It shows a completely different picture of AAPL.
You are aware that AAPL sells worldwide and booming everywhere? US, Europe, South America, China, rest of Asia, It's the biggest single brand with P?E of 12 and you did not even mention growth rate!
The Battle Rages On: Apple Feels The Heat, But Keeps The Lead [View article]
http://bit.ly/GAxU6X Rumor: Apple ordering more from Samsung despite lawsuit ....
One tip asserted that Apple was aware it needed Samsung as a manufacturer. The Korean electronics giant had not just the scale to meet Apple's needs but the technological currency, favorable pricing, and the flexibility to change in an emergency," according to the anecdote. ....
Neither company has publicly confirmed any of the details, although it would reflect a love-hate relationship that has been true ever since Samsung started directly targeting the iPhone with devices like the Galaxy S. Although either side has remained determined to cling to legal battles, including Samsung, the two have pledged to keep supply agreements going. As much as Apple is dependent on Samsung's size, the latter still considers Apple its largest customer and would take a major hit to its financial performance if Apple either switched suppliers voluntarily or was forced out.
RIM Q4 Earnings Preview: Increased Competition, But Positive Sign Emerges [View article]
I like RIMM also at this price and bought shares last week. I think the stock overcorrected to the downside on negative news. It could easily go up to 20-25 from here and still not be overpriced. RIMM has strengths and should improve on those. Improve their phones, quality and services to keep existing customers and get new customers interested, instead of trying to follow other competitors and suffer quality and user issues.
Here Comes The Perfect Storm For The U.S. Economy [View article]
As the famed communication theorist, Marshall McLuhan, once said, "Propaganda ends where dialogue begins."
Here's What's Going On With Telefonica Right Now, And No, It's Not All Bad [View article]
Makes no sense 007, credibility is enhanced, not reduced. You've got to put out the fire before you can rebuild the house. With the financial crisis in Spain worsening and effective debt going up as a result (Jul 26 post by Hammer) it was sensible to scrap payout for 2012.
It recognizes that the previous dividend cuts were too timid. Telefónica can now cope with being shut out of bond markets for all of this and next year. Telefónica may need to put dividends on hold for longer if the crisis goes on. Also better for shareholders in the long run.
<Moody's : Telefonica's dividend suspension is credit positive, but rating remains on> review for downgrade.>
China Medical Technologies (Update): Dude, So That's What You Did With My Company [View article]
Paragraph 15. The 3 Operating Companies, Yuande, GP Medical and Bio Ekon should certainly be familiar to you from your due diligence before buying CMED. They're the (formerly) wholly owned subs that actually have assets and make medical things.
Paragraph 33. Notice that 60% of each of those Operating Companies have been "sold" to Chairman of the Board and CEO Xiaodong Wu's companies and friends, leaving CMEDY owning only 40% of its own operating companies.
You're probably thinking, OK, but maybe Wu got a great price. Unfortunately, since he was also the buyer, Wu-the-seller had no motivation to get a decent or even a fair price. Look at paragraph 35. The purchase price was apparently a song -- the total purchase price totaling well below the earlier purchase price of only some of those assets. On top of the giveaway price, the buyers (Wu's fronts) only had to pay 5% of that up front.
Unless the Complaint is wrong, then Wu's given away 60% of the value of CMEDY, while leaving the entire $400 million debt.
Worse, by defaulting on the interest payments, Wu's triggered the default provisions, meaning the entire $400 million dollar principle is now entirely due (plus the interest, plus the penalties, plus the default fees, etc.).
If the allegations in the Complaint are correct, then the conclusion drawn in paragraph 41 is pretty inescapable:
"41. As a direct consequence of Wu's conduct, CMED has been rendered insolvent, and CMED's assets have been intentionally wasted, dissipated and diverted away from CMED's creditors and shareholders."
China Medical Technologies made a truckload from institutional and retail investors who believed in its tales of rapid growth and increasing profits, raising $750 million in stock and bonds during the last 5 years.
It's totally unclear how this story will pan out, and why AER Advisors has been buying 10 million shares of China Medical stock for William and Peter Deutsch in recent months.
What we do know is that liquidation proceedings have begun in the Cayman Islands to hand over whatever remains to angry bondholders.
Retail investors, just stay away. Let the big guys sort it out. Investing and speculating are not the same!
Court documents:
http://scr.bi/NCvJRi
http://scr.bi/NCvLIM
Here's What's Going On With Telefonica Right Now, And No, It's Not All Bad [View article]
Consider, for example, the fact that Greece’s public debt equals 165% of its GDP, while Spain’s stands at 68%, well below the Eurozone average, and even lower than those of Germany and France. This fact alone places Greece and Spain in very different places when it comes to balancing public accounts. Compared with the somewhat surprising attitude of Greek politicians, neither of the Spanish governments that have led the country since the crisis began—the socialists under Jose Luis Rodríguez Zapatero and the popular party led by Mariano Rajoy—have considered the option of waiting for their European partners to sort out their domestic problems. Quite the opposite, in fact. Both have taken action to balance public accounts. Moreover, Spanish society has just given its vote to a government whose key commitment is precisely to accelerate its economic reform program. Neither Spanish politicians nor Spanish citizens expect others to resolve their country’s problems for them.
http://onforb.es/L3NRG4
US Debt As % Of GDP in 2012: 105,32%
Spain Debt As % Of GDP in 2012: 68.5%
http://bit.ly/L3NPOu
The Rally May Have Legs But It Has No Hope [View article]
'Mad Money' Picks: 7 Tech Buys And 2 Sells [View article]
'Mad Money' Picks: 7 Tech Buys And 2 Sells [View article]
Transocean's Value Proposition: Leading Driller Stays Afloat By Going Deepwater [View article]
Transocean Biggest Winner From 28% Jump in Oil Rig Rates: Energy
By David Wethe - Mar 28, 2012 1:00 AM GMT+0200
Transocean Ltd. (http://bit.ly/oeANwU), the deep-water rig owner that’s trailed competitors in the stock market since its equipment burned and sank in the 2010 Gulf of Mexico oil spill, is set to benefit the most this year from a surge in demand.
Rental rates for ultra-deep-water rigs, the world’s most complex and expensive drilling vessels, should climb 28 percent to a record $714,000 a day by the third quarter from about $560,000 currently, according to estimates by Ole Slorer, an analyst at Morgan Stanley who dubs the move a “super spike.”
Transocean, the world’s biggest owner of offshore rigs, will have more units available for leasing than rivals through 2013. That positions the Swiss company better to supply vessels that can cost $600 million each to explorers from Exxon Mobil Corp. (http://bit.ly/tVVFv0) to BP Plc (BP/) that are leading the search for crude miles below some of the world’s deepest oceans.
“Our long-term outlook for ultra-deep-water is very, very robust,” Transocean Chief Executive Officer Steven Newman told investors March 26 at the Howard Weil Energy Conference in New Orleans. Demand can only grow as explorers must book rigs further into the future to get their wells drilled, he said.
http://bloom.bg/HdhKej
Transocean's Deepwater Expedition Contract Bodes Well For Drilling Company Day Rates [View article]
Transocean Biggest Winner From 28% Jump in Oil Rig Rates: Energy
By David Wethe - Mar 28, 2012 1:00 AM GMT+0200
Transocean Ltd. (http://bit.ly/oeANwU), the deep-water rig owner that’s trailed competitors in the stock market since its equipment burned and sank in the 2010 Gulf of Mexico oil spill, is set to benefit the most this year from a surge in demand.
Rental rates for ultra-deep-water rigs, the world’s most complex and expensive drilling vessels, should climb 28 percent to a record $714,000 a day by the third quarter from about $560,000 currently, according to estimates by Ole Slorer, an analyst at Morgan Stanley who dubs the move a “super spike.”
Transocean, the world’s biggest owner of offshore rigs, will have more units available for leasing than rivals through 2013. That positions the Swiss company better to supply vessels that can cost $600 million each to explorers from Exxon Mobil Corp. (http://bit.ly/tVVFv0) to BP Plc (BP/) that are leading the search for crude miles below some of the world’s deepest oceans.
“Our long-term outlook for ultra-deep-water is very, very robust,” Transocean Chief Executive Officer Steven Newman told investors March 26 at the Howard Weil Energy Conference in New Orleans. Demand can only grow as explorers must book rigs further into the future to get their wells drilled, he said.
http://bloom.bg/HdhKej
Impending Bidding War For ING's Asian Life Insurance Arm [View article]
Impending Bidding War For ING's Asian Life Insurance Arm [View article]
A new report published by prominent international ratings agency Moody’s Investors Service this week urges European insurance companies to expand their business eastwards into Asia, as their collective presence in the region at present is too limited to affect their overall financials. This current situation, Moody’s explains, has a credit-neutral effect on insurer credit profiles, but if these same companies can expand profitably in the Asia Pacific region in the coming years, credit implications might turn positive over the longer-term.
...
In the conclusion, Moody’s explains that Asia ex-Japan is by now means a monolithic, uniform insurance market, and that certain countries in the region will continue to present more attractive growth opportunities to European insurers than others in the short-to-medium term. While Asia collectively certainly is a large and fast-growing insurance market, international insurers are still likely to find large variations in business attractiveness and ease of access across the continent’s assorted economies. According to Moody’s analysis, Vietnam, Indonesia, Thailand and the Philippines offer the highest level of potential for foreign insurers in Asia at present, despite the notable risks often associated with emerging insurance market development and evolution.
The findings in Moody’s study reflect similar conclusions made by other agencies earlier this year. In Deloitte’s 2012 Global Insurance Outlook, the consulting firm agrees that the most attractive avenue for international insurers going forward could be emerging insurance markets, which offer faster-growing economies and rising incomes for more sustainable premium growth opportunities.
http://bit.ly/HlMBsM
Apple Topping Out? Options Market Overheated [View article]
You are aware that AAPL sells worldwide and booming everywhere? US, Europe, South America, China, rest of Asia, It's the biggest single brand with P?E of 12 and you did not even mention growth rate!
The Battle Rages On: Apple Feels The Heat, But Keeps The Lead [View article]
Rumor: Apple ordering more from Samsung despite lawsuit
....
One tip asserted that Apple was aware it needed Samsung as a manufacturer. The Korean electronics giant had not just the scale to meet Apple's needs but the technological currency, favorable pricing, and the flexibility to change in an emergency," according to the anecdote.
....
Neither company has publicly confirmed any of the details, although it would reflect a love-hate relationship that has been true ever since Samsung started directly targeting the iPhone with devices like the Galaxy S. Although either side has remained determined to cling to legal battles, including Samsung, the two have pledged to keep supply agreements going. As much as Apple is dependent on Samsung's size, the latter still considers Apple its largest customer and would take a major hit to its financial performance if Apple either switched suppliers voluntarily or was forced out.
RIM Q4 Earnings Preview: Increased Competition, But Positive Sign Emerges [View article]
Is It Time To Sell Technology Stocks? [View article]