Why You Must Invest?

Question : How is your investment style different today than when you started the fund?

Answer : A lot of things have changed. One bonus about this profession is you get better over time. Most professions, as you get older, you get out of the game. Take the example of competitive sports. If you are a figure skater or gymnast, after your teenage years you are out of the game. With investing, if you are doing it the right way, you get better over time. Your knowledge accumulates exponentially. When I look back at everything I have done, I would have done it all slightly differently, but that is because I am better at it today. So if you approach it in a fundamentally sound way, as you mature, you become better and better. That process and progression is like compounding money. In fact, you can compound knowledge faster than money. If you truly love this game, I would suggest that you don’t take short cuts. It might take longer but it is more rewarding.

Jim Cramer Predicts BP plc (ADR)(NYSE:BP) Bankruptcy

During his “Eureka Moment” segment, Jim Cramer told viewers of his “Mad Money” TV show that BP plc (ADR)(NYSE:BP) is not too large to fail. In fact, he thinks its a real possibility that the Gulf disaster could could easily swallow up the entire company. “Because of the potential for a near infinite number of claims from the Gulf of Mexico oil spill,’ Cramer said, “bankruptcy is very much on the table for BP.”


Cramer said the BP oil disaster should not be compared to the Exxon Valdez spill, but rather to the asbestos industry, which has completely wiped out due to the large number of claims it was hit with.”It’’s magical thinking to believe the company’s cash flow of around $7 billion a quarter is enough to get them through the disaster,” he said. Cramer said this would be especially true if a big storm blows through the Gulf of Mexico.
“if we get indictments,” he said, “the claims will overwhelm the company, and it will be in BP’s best interest to file bankruptcy in order to manage the process.”
Cramer explained that lots of people though the asbestos industry would be safe despite the endless denials. “But one by one, the manufacturers, the distributors, the installers, and eventually everyone who ever came in contact with the stuff, even tangentially, disappeared,” he said.

“Its not on the top of anyone’s mind that this could happen because BP is a huge company with lots of resources,” Cramer said. “But so were all of the companies that made asbestos.”

Cramer told viewers BP’s stock is uninvestable and dangerous, even at its current depressed prices.

Genting Berhad : Strong Growth on Revenue from GENTING Singapore (Holiday season)

A peek at RWS: Full house! Our attempt to visit Universal Studios was futile as tickets were sold out during weekends and on the day of our visit. Park capacity has increased to c8-10k guests (from 5k in May; full capacity: 30k) and operating hours extended to 7pm (from 6pm) in view of the school holidays. Hotels were seeing >80% occupancy, with weekends fully booked. While the casino was quiet during our visit on Monday morning, we understood that gaming operations have stabilized post-MBS opening and are seeing good visitations backed by strong loyalty from Genting Group’s Worldcard members. A total different picture was presented during our evening peak hour visit, with table crowds averaging 3 rows deep.



Positive stance on Singapore gaming. Even with MBS’ opening in Apr10, we believe GENS will likely report another strong quarter backed by healthy visitations during the peak holiday season (May-Jul10). While Genting Singapore offers the best leverage into Singapore’s duopolistic market, a cheaper entry will be via Genting Berhad (Buy/ TP: RM9.00) which is trading at half of GENS’ valuation at 7.4x 2011 EV/EBITDA, along with resilient base earnings from its other operations ie Malaysian gaming, plantation and power

Special Situation: Riding the Renminbi Tide

Beneficiaries in ASEAN

Today's China : Uniquely African, made in China

BEIJING (AP) - Chinese media say up to 90 percent of the vuvuzelas sold in South Africa during the World Cup are made in China, with local manufacturers readying for a new boost in demand.
If those buzzing, honking vuvuzelas are marring your World Cup experience, don't expect much sympathy from Chinese businesswoman Gua Lili.
Gua's Guangda Toy Factory in the eastern manufacturing hub of Yiwu has produced and shipped more than 1 million of the plastic trumpets, whose sound has been likened to a swarm of angry bees. Production is steaming ahead at up to 20,000 units per day.
And if you thought the noisemakers' would just fade away after the World Cup ends next month, Gua believes demand will simply expand.

Boustead Holdings Berhad : RM570 Expansion

Boustead Holdings, a conglomerate controlled by the Armed Forces Fund Board, plans to spend RM570m by year-end to fund its expansion in Malaysia. The budgeted capital expenditure (capex) would be used for the expansion of its dockyard in Lumut, Perak and further develop properties consisting of mainly hotels in Klang Valley. The funds will be financed from on going operations as well as some proceeds from recent rights issue.

(Malaysian Reserve)