Monday, March 2, 2009
9:37 am - Market Report by Bill Wermine
Dear Traders,
Don't forget: If you are free this talk given by Sam Gibson Executive of Man Group and Ang Kok Heng, CIO of Phillip will explain a way to profit/protect your assets in the unfolding world wide depression. Please let me know if you wish to attend as seats are limited and we expect a full house. Refreshments will be served and the talk is FOC.
Man Alternative Investment talk
Date : 3 March 2009 (Tuesday)
Time : 7.00pm - 9.45pm
Venue : Westside Room 1, 2 & 3, Level 8,
Boulevard Hotel, Mid Valley City,
Lingkaran Syed Putra,
59200 Kuala Lumpur
Despite deep recession and potential depression in Singapore, the US, Europe, UK, Russia, Korea and Japan there are some bright spots.
Vietnam is booming as related to me from a businessman friend of mine who just returned from Hanoi . Cambodia is also doing well with an influx of Korean and Japanese multinationals. The China stockmarkets have also bottomed out after falling over 70 % . Malaysia has also held up rather well. In Malaysia there are many jobs for those willing to work and opportunities for business.
While in Singapore last week, my driver was a qualified accountant. Airport attendants were local Singaporeans in their 50s and 60s who consider themselves lucky to have a job. At least Singaporeans are willing to take a humble but honorable job when times are hard.
I have been asked this question many times: Will Obama's plan work ? In a word no, it will fail. Perhaps there will be some short term gain but the foundation of his plan: Tax and Spend our way to prosperity is a plan which is like building a sand castle next to the Pacific ocean. One big wave will destroy the castle..
The only countries which are surviving the on going financial crises are countries such as Vietnam, China, Cambodia and Malaysia which have low taxes, high savings rates, and very low levels of welfare, unemployment compensation.
Singapore will survive because of high savings rates, low taxes and no welfare. This is the Singapore policy: If you do not work, you do not have the right to eat. This in my opinion is a good incentive to find work no matter how humble is the job.
Obama has sold the American public a pipe dream. But this dream will evaporate like a puff of smoke. He feels he can rob Peter to pay Paul. Unfortunately Paul, the businessman is the man who creates wealth through his entrepreneurial spirit and capital.
Paul saved his money and that is the capital which can save America. Obama through his proposed higher taxes on capital gains, dividends and increased taxes on high net worth investors/ business will cofiscate this capital which can be used to bail out those who have a welfare mentality, bought homes they could not afford, have no savings and max out their credit cards
These are voters and Obama's main goal is to keep power at all costs- No wonder he is always smiling. His smile is like the smile of my Labrador dog just before he pounces on and eats a rat. My dog is a specialist in catching,killing and eating rats
Obama will also transfer this wealth to politicians, chronies, and special interest groups who have no incentive to create wealth but owe him loyalty.
There are ony 2 ways to make money : work for it or steal it. Obama's plan is to steal it but in my opinion that will end up badly
Many of you including myself are holding F & N. They lost the Coca Cola franchise, the share plunged asthis will effect their earnings;
Attached is the F and N chart with and ATR stop at 7.15. It looks like panic selling right into a major support. Because of low debt levels, strong cash flows and a wide product line of basic necessities such as milk and soft drinks they are well supported.
Although almost every analyst in town is recommending to sell, I would wait for the dust to settle before getting caught in the panic. If support breaks you must exit. I will. There is evidence of insider buying on this break. Bad news is a way insiders manipulate shares to buy from the sheep investors at a cheap price. In my opinion the break in F & N was a manipulation
Have good week ahead
Don't forget: If you are free this talk given by Sam Gibson Executive of Man Group and Ang Kok Heng, CIO of Phillip will explain a way to profit/protect your assets in the unfolding world wide depression. Please let me know if you wish to attend as seats are limited and we expect a full house. Refreshments will be served and the talk is FOC.
Man Alternative Investment talk
Date : 3 March 2009 (Tuesday)
Time : 7.00pm - 9.45pm
Venue : Westside Room 1, 2 & 3, Level 8,
Boulevard Hotel, Mid Valley City,
Lingkaran Syed Putra,
59200 Kuala Lumpur
Despite deep recession and potential depression in Singapore, the US, Europe, UK, Russia, Korea and Japan there are some bright spots.
Vietnam is booming as related to me from a businessman friend of mine who just returned from Hanoi . Cambodia is also doing well with an influx of Korean and Japanese multinationals. The China stockmarkets have also bottomed out after falling over 70 % . Malaysia has also held up rather well. In Malaysia there are many jobs for those willing to work and opportunities for business.
While in Singapore last week, my driver was a qualified accountant. Airport attendants were local Singaporeans in their 50s and 60s who consider themselves lucky to have a job. At least Singaporeans are willing to take a humble but honorable job when times are hard.
I have been asked this question many times: Will Obama's plan work ? In a word no, it will fail. Perhaps there will be some short term gain but the foundation of his plan: Tax and Spend our way to prosperity is a plan which is like building a sand castle next to the Pacific ocean. One big wave will destroy the castle..
The only countries which are surviving the on going financial crises are countries such as Vietnam, China, Cambodia and Malaysia which have low taxes, high savings rates, and very low levels of welfare, unemployment compensation.
Singapore will survive because of high savings rates, low taxes and no welfare. This is the Singapore policy: If you do not work, you do not have the right to eat. This in my opinion is a good incentive to find work no matter how humble is the job.
Obama has sold the American public a pipe dream. But this dream will evaporate like a puff of smoke. He feels he can rob Peter to pay Paul. Unfortunately Paul, the businessman is the man who creates wealth through his entrepreneurial spirit and capital.
Paul saved his money and that is the capital which can save America. Obama through his proposed higher taxes on capital gains, dividends and increased taxes on high net worth investors/ business will cofiscate this capital which can be used to bail out those who have a welfare mentality, bought homes they could not afford, have no savings and max out their credit cards
These are voters and Obama's main goal is to keep power at all costs- No wonder he is always smiling. His smile is like the smile of my Labrador dog just before he pounces on and eats a rat. My dog is a specialist in catching,killing and eating rats
Obama will also transfer this wealth to politicians, chronies, and special interest groups who have no incentive to create wealth but owe him loyalty.
There are ony 2 ways to make money : work for it or steal it. Obama's plan is to steal it but in my opinion that will end up badly
Many of you including myself are holding F & N. They lost the Coca Cola franchise, the share plunged asthis will effect their earnings;
Attached is the F and N chart with and ATR stop at 7.15. It looks like panic selling right into a major support. Because of low debt levels, strong cash flows and a wide product line of basic necessities such as milk and soft drinks they are well supported.
Although almost every analyst in town is recommending to sell, I would wait for the dust to settle before getting caught in the panic. If support breaks you must exit. I will. There is evidence of insider buying on this break. Bad news is a way insiders manipulate shares to buy from the sheep investors at a cheap price. In my opinion the break in F & N was a manipulation
Have good week ahead
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