Risk or Safe?

In 1929, John Raskob had a sexy wife, smart kids and a great job. He was the chief financial officer at the world's largest company, General Motors.

Then he did a silly thing. He offered this advice to anyone who would listen: Invest just US$15(S$24) per month in stocks. In 20 years, it will grow to US$80,000.

That translates to a super high annual return of 24 percent. But in the booming 1920s. It was believable.

On 3 Sep 1929, just days just after his comments were published, the Dow Jones stock index hit an all-time high of 381(Today it is over 11,000)

Two months later, US markets crashed. Then over the next two years, shares lost 80 percent of their value. Millions lost their life savings and Mr Raskob's advice was ridiculed. How can you be so wrong?

Today, if you had stuck with Mr Raskob's advice, you would have done all right. Your US$15 per month would have grown to US$17,000 in 20 years and US$65,000 after 30 years.

That's a return of 13 percent per year, which is less than the 24 percent Mr Raskob forecasted. But it is respectable and far exceeds "safe" investments like bonds which earned just 3 percent over the same period.

The lesson from this amazing story is that risky investments are not risky in the long-run. To prove it, we need data from the US. Since 1926, US stocks have out-performed bonds 80, 90 and 100 percent over periods of 10, 20 and 30 years.

In fact, there has never been a 30-year period when stocks have lost money or even earned less than bonds. Returns to stocks averaged 10 percent against 5 percent for bonds.

We think of bonds, savings accounts and fixed deposits as safe. It turns out, however that the safest way to preserve your wealth is to buy and hold a diversified portfolio of stocks.

What's a Bond? - By Motley Fool Staff

Most of us have heard of bonds, but many of us don't understand just what a bond is. It's essentially a long-term loan. If a company issues bonds, it's borrowing cash and promising to pay it back at a certain rate of interest.

Bonds sold by the U.S. government's Treasury Department are called "Treasuries." State and local governments issue "municipal bonds," while businesses issue "corporate bonds" (sometimes called corporate "paper"). Companies that may be perceived as low-quality are forced to offer high-interest-rate "junk" bonds to attract buyers. There's a higher risk that someday they won't have the cash to cover interest payments and the bonds will default.

Bond investors receive regular interest payments from the issuer at what is called the "coupon rate." For example, a $1,000 bond with a coupon rate of 10% generates payments of $100 per year. When the bond matures -- after perhaps five, 10, or 30 years -- investors get back their initial loan, called "par value." Most corporate bonds have a par value of $1,000, while government bonds can run much higher.

Sometimes a company will "call" its bond, paying back the principal early. All bonds specify whether and how soon they can be called. Federal government bonds are never called.

To calculate a bond's yield, divide the amount of interest it will pay over the course of a year by its current price. If a $1,000 bond pays $75 a year in interest, its current yield is $75 divided by $1,000, or 7.5%.

Once issued, bonds can be traded among investors, with their prices rising and falling in reaction to changing interest rates. For example, when rates fall, people bid up bond prices. If banks are offering 6%, an 8% bond starts looking good.

In the long run, stocks have outperformed bonds handily. According to Jeremy Siegel's Stocks for the Long Run, from 1802 to 1997 (yes, you read that right -- 195 years), the stock market offered an average nominal annual return of 8.4% per year, compared with 4.8% for long-term government bonds.

Stocks outperform bonds even when you eliminate the 19th-century data. According to Ibbotson & Associates, from 1926 to 2000 (notice that includes the Great Depression years), U.S. Treasury bills returned an average of 3.8% per year, compared with 5.3% for long-term corporate bonds and 11% for stocks. If you had invested $5,000 in T-bills 50 years ago, it would now be worth $33,272. Growing at 11% in stocks, it would be worth $922,824. (From 1926 to 2000, inflation grew at an average rate of 3.1% annually.)

For long-term investors, stocks offer the best potential for growth. Still, it's smart to understand how bonds work before you dismiss them. And also to understand that although stocks may average 11% growth over a long period, over the next five or 10 or even 20 years, the average return may be different.

Article Excerpted from:
http://www.fool.com/News/mft/2006/mft06031603.htm

Company Update: UTAC, SMIC's China venture factory starts output

SINGAPORE, March 17 (Reuters)

The following statement was released by the company:
Semiconductor Manufacturing International (Chengdu) Corporation Holds Grand Opening Ceremony for Assembly and Testing Facility

Shanghai, China. March 17th, 2006- Semiconductor Manufacturing International Corporation (SMIC) held a grand opening ceremony for its semiconductor assembly and testing joint venture with United Test & Assembly Center Ltd based in Chengdu, named Semiconductor Manufacturing International (Chengdu) Corporation, also known as AT2.

Approximately 300 guests, including customers, investors, banks, strategic partners, vendors, industry experts, various government representatives, and Mr. Lee Joon Chung, Group President & CEO of UTAC attended the ceremony.

The assembly and testing facility is located in Chengdu's Special Export Manufacturing Zone. The total land area is 40,668 square meters.

Construction area is 215,000 square meters, including approximately 1,000 square meters of clean room. Investment will amount to approximately US$175 million in the first phase.

As an investment entered by one of the leading foundries in the world, SMIC, and UTAC, a leading semiconductor test & assembly company, AT2 services SMIC's global customers and also China's growing spectrum of semiconductor activities with a comprehensive suite of technology and product.

AT2 has commenced pilot production on TSOP. Initial IC packaging product is expected to focus on TSOP, SO8, TSSOP, PDIP, TO220 and DPAK in the first quarter of 2006 and mass production will be expected to produce up to 10M to 100M pieces chips per month for assembly line according to the requirements of different products.

At the opening ceremony, Dr. Richard R. Chang, President and CEO of SMIC, said, "China has become the largest IC market in the world. With support from our partners and the Chengdu government, we aim to offer a complete turn-key solution in China for our global customers. We are already seeing strong demand for our services and I believe the partnership between SMIC and UTAC will continue to serve the needs from customers here in China and around the world."

"We are delighted that our maiden joint venture with our partner has begun operations and is already seeing strong demand," said Mr. Lee Joon Chung, Group President and CEO of UTAC.

"The semiconductor market in China is growing rapidly and we believe that this new facility will complement UTAC group's existing operations in Shanghai to better serve our customers."

Mr. Ge Honglin, the Mayor of Chengdu, said, "The opening of SMIC (Chengdu) marks the new milestone of SMIC's development in China, and we appreciate the opportunity to cooperate with SMIC. We would continue to try our best to support SMIC's development with highly efficient services to create a good investment environment and infrastructure for corporations in Chengdu."

[Outline of Semiconductor Manufacturing International (Chengdu) Corporation]

Company Name: Semiconductor Manufacturing International (Chengdu) Corporation

Date of Establishment: December 24, 2004

Total Investment: US$ 175 Million

Address: High Tech West Area, Chengdu City, China

Cleanroom Area: Approximately 11,000 square meters

Estimated Production Capacity: 10 to 100 Million chips/month with various products

Other Articles on this Blog.

United Test And Assembly Centre purchased new building for expansion

United Test and Assembly Center - Good Times Ahead


Singapore's UTAC to replace Great Eastern in STI

Taiwan stocks offer route to benefit from China’s growth: US fund manager

HONG KONG— While investors around the globe hunt for stocks that will help them cash in on China’s red-hot economic growth,a United States-based fund manager says neighbouring Taiwan offers investors a good route to capture this growth

“Certain Taiwanese companies that are active in China offer excellent potential returns,” Mr Steven Champion, president of the Taiwan Greater China Fund, said in an interview with Dow Jones Newswires.

Mr Champion’s picks for the closedend,New York Stock Exchange-traded US$115 million ($186 million) fund include Taiwanese companies that export goods to China or have substantial investments in China.Taiwanese companies are some of the largest investors in China: Two-thirds of China’s information technology exports are made by Taiwanese companies with factories in China.

Mr Champion’s fund, established in 1989, includes Taiwanese large capitalisation companies such as Hon Hai Precision Industry Co, which manufactures electronics for several global brands; and AU Optronics Corp, Taiwan’s largest liquidcrystal-display maker by revenue.

Mr Champion said the fund had 70 per cent of its holdings in Taiwanese technology companies that have strong business ties with China, mainly through production facilities in the mainland.

Technology companies account for around 60 per cent of the market capitalisation of the companies in the Taiwan Stock Exchange Index.

Technology companies offer the best link to China because they manufacture and export a large portion of their goods from China, Mr Champion said.

But Taiwanese banking stocks are not on his list.

“We don’t have financial stocks because they are not allowed to invest capital into China,” said Mr Champion.

The fund is also looking to find smallcap stocks to invest in. Mr Champion said small-cap companies offered good value and growth prospects and would allow the fund to diversify its portfolio.

So far, the fund has been able to beat the benchmarks. Last year, the Taiwan Greater China Fund returned 8.16 per cent,compared with the 6.8-per-cent gain in the Taiwan Stock Exchange Index in US dollar terms and 6.4 per cent in the MSCI Taiwan Index, according to Mr Champion.

That beat the drop of 8.3 per cent in China’s Shanghai Composite Index, though the fund fell short of the 12-per-cent rise in the Hong Kong H-share Index. The H-share Index is made up of Chinese companies listed in Hong Kong.

Mr Champion said Taiwan’s market,when compared with China’s exchanges, offered investors interested in the Chinese growth story a more transparent vehicle to tap into.

“Taiwan has much higher levels of corporate governance than China,” said Mr Champion.

“China is an economic miracle, but it is not so easy to play this.” China’s domestic stock market lacks risk controls and good corporate governance standards, and Mr Champion is not the only one who says Taiwan operates to a higher standard.

The 2005 CG Watch, published by CLSA and the Asian Corporate Governance Association, ranks Taiwan fifth out of ten Asian economies in corporate governance standards.

China ranks ninth on the list topped by Singapore and Hong Kong.

Several Taiwanese companies, which are included in the fund’s top 10 holdings,are among CG Watch’s top-ranked companies for corporate governance. There are no Chinese companies on the list.

“We wanted to invest in a more developed market but get good exposure to China,” said Mr Champion.

Yet, while Taiwan offers investors a more transparent market than China, it still has plenty of risk. This includes poor treatment of minority shareholders and lax accounting standards. — DOW JONES BLOOMBERG

A Fleet of Foot Stocks - By Jeremy MacNealy

Consolidation continues to shrink the field of viable contenders for the title of Best Footwear Investment. Fool contributor Jeremy MacNealy focuses in on the athletic side of footwear and highlights one large-cap, medium-cap, and small-cap stock to see how each one measures up.

The spirit of the Olympics has been on full display in recent days, and in light of this world-class, worldwide competition, it's a good time to check on an equally tough sport -- the battle for your athletic feet.

Recently released 2005 data from research firm NPD Group shows that, once again, footwear sales growth continues to outpace apparel. With 9% revenue growth at NPD, an analyst characterized the year by saying, "Footwear is on fire." And where there's fire, we may just find an investment or two to heat up your portfolio. The number of companies in this sector seems to be shrinking, with buyout offers becoming standard practice -- Adidas' purchase of Reebok being just one example -- but there are still enough companies left for us to examine.

In this investigation of the industry, we will focus on three enterprises, representing large to small capitalizations in Nike (NYSE: NKE), Timberland (NYSE: TBL), and Stride Rite (NYSE: SRR), respectively, to see what each offers as potential investments.

The reigning running champ
In the University of Oregon's track and classroom are found the seeds that grew into the Nike behemoth. Track coach Bill Bowerman and accounting student Phil Knight made a small partnership, amounting to about $1,000, in order to import a Japanese-made running shoe. Fast-forward more than 40 years later, and Nike's pinkie-toe-sized beginnings have ballooned into an empire with a market capitalization of $22 billion and annual sales of more than $14 billion.

Like an athlete preparing for the Olympics, Nike continues to push its abilities to higher levels of performance. For example, from 2001 to 2005, sales, gross margins, the cash-to-long-term-debt ratio, and the return on equity have all steadily strengthened for the company. What this tells us is that Nike not only knows a thing or two about selling shoes but also that management knows how to run a business. As investors, we are looking to invest in well-run companies, and Nike is meeting that challenge.

In the most recent quarter, footwear sales led the charge with high double-digit growth in the U.S. and the Americas. In the Asia-Pacific region, however, sales improved only marginally. But that means there's an opportunity for growth, and management suggested in its quarterly conference that Nike will begin employing a more aggressive strategy in China and India. CEO Bill Perez put it bluntly: "We want to own those markets."

To tackle that objective, Nike plans to use a more cohesive global strategy to better connect the brand to the consumer by removing gaps in its distribution model and making greater use of both its Nike stores and the Internet. Something tells me that the enterprise that brought us His Airness, Michael Jordan, and the new young king, Lebron James, to the world of footwear will indeed conquer these emerging markets.

Hiking up distribution
In the NPD report, Timberland was mentioned as a company that stands to benefit from the recent trends toward the "SUV of footwear" -- a term that points to boots and hiking styles. A look at Timberland's fourth-quarter results however, doesn't exactly paint a picture of an athlete in his or her prime. Revenues for the quarter increased by a paltry 2.3% compared with the year ago period. Against industry trends, ironically, it was Timberland's apparel and accessories units that offered the greatest growth -- they increased 5.4% year over year.

Time will tell whether the company's recent SmartWool acquisition will help kick-start sales. For 2005, SmartWool's annual sales are estimated to be in the $42 million range -- a nice boost to Timberland net revenues for 2006. I helped out SmartWool's top line by purchasing several pairs of its socks for hiking. This is a line that Timberland, given its more expansive distribution model, should be able to integrate into its existing structure and build upon.

In the meantime, Timberland's cash position and cash generation are two positives worth mentioning. It currently has $213.2 million in cash and no debt. This kind of balance sheet gives it plenty of flexibility to aggressively expand its operations either organically or through additional acquisitions.

Additionally, the company is doing a decent job in bringing in the free cash flow (FCF). Despite inventory write-offs in 2005, which dropped its FCF slightly from 2004 levels, it still produced $156.3 million in FCF. What's more, with a market cap of $2.3 billion, Timberland trades at roughly 13 times FCF. In light of management's mid-single-digit growth estimate for 2006, as well as upside potential that may come as Timberland builds out the SmartWool brand through its distribution model, this is a reasonable multiple.

A baby shoe worth looking into
With a market cap of $522 million, Stride Rite is by far the smallest of these three footwear companies. But don't take it for a chump. The scrappy company has been a champ of an investment over the past three years, with a compound annual growth rate over that period of 21% -- almost 7 percentage points more than the S&P 500's performance.

Why has it done so well? It seems the market keeps underestimating Stride Rite's potential. For example, using the consensus estimate of $0.93 per share for the year, it's trading at roughly 16 times this year's earnings. It is also being valued at approximately 16 times the trailing 12 months of FCF. Analysts, on the other hand, are expecting the company to achieve strong double-digit revenue growth (25.6%) and earnings-per-share growth (41%) this fiscal year.

A major reason that growth is expected to jump this year is a result of Stride Rite's recent acquisition of Saucony, which, along with its Hind brand, should help Stride Rite make solid advances in the athletic footwear and apparel market. Saucony, for instance, will soon be launching a new line of retro footwear. Set to hit stores in fiscal 2007, Saucony Originals are a technical running shoe modeled after an early-1980s version.

If redoing the old styles works for apparel retailers such as Guess? (NYSE: GES) and Abercrombie (NYSE: ANF) -- with their flared pants, which are hot all over again -- it should work for a shoe manufacturer. Should the company continue to improve its growth rate organically with product innovation and through smart acquisitions, Stride Rite could indeed be considered an interesting small-cap play.

Time to lace 'em up?
Nike, Timberland, and Stride Rite are all trading at approximately 16 times this year's projected earnings, even though each has different growth expectations for the year. But whether it's dynamite operational performance in Nike, a reasonable enterprise value-to-FCF multiple in Timberland, or a solid estimated double-digit growth in Stride Rite, all three carry a reasonable value at today's prices. Both Nike and Stride Rite add an extra incentive to investors with comparable dividend yields. Finally, Nike stands out above the other three with its exceptional consistent performance on margins, balance sheet, and returns on equity.

All three are worthy candidates for additional research, but there is a reason why the Swoosh is the most recognizable symbol in athletic apparel and footwear -- the company is a champion.

Article excerpted from http://www.fool.com/news/commentary/2006/commentary06022404.htm?ref=foolwatch

The Value Of Starting Early

Delaying Your Planning


Cheers
Niversphere.

Noble Group : An Undervalued Business Model.

"Buy when others are fearful"







Noble Group is a market leader in managing the global supply chain of agricutural, industrial and energy products. With a network of over 70 offices in 35 countries serving more than 3500 customers. Noble Group adds value at every link in the supply chain. With 2004 revenue of US$8.6 billion.

In 2005, Noble Group was assigned ratings from Moody's Investors Service and Standard & Poor's Ratings Agency and joined the benchmark Straits Times Index and MSCI Index in Singapore. During this period, the Group was also recognized by Hewitt Associates as one of Hong Kong’s Best Employers, The Asset for its excellence in Corporate Governance while topping the annual Forbes 2000 list of best stock performers over the past five years. In 2004, the Group’s Board of Directors was awarded the Listed Company (Main Board) Board Award from The Hong Kong Institute of Directors and ranked first on the Billion-dollar club of the Singapore Stock Exchange for Total Shareholder Returns over a 3 and 5 year period.

Let me show you my buy decision making for Noble Group.

On 8th September 2005,
Noble group subsidiary Noble Energy expanded into the Global Carbon Market. Lead by a experienced team.
On 1 January 2005, the EU established a new carbon market through the implementation of the EU ETS. The EU ETS resulted in approximately 7,300 companies being exposed to greenhouse gas emission compliance requirements. Through legislation enacted by the local governments of the 25 EU member states, the affected companies have imposed upon them tight carbon emission restrictions. The first compliance period under the EU ETS is 2005-07 which precedes the first Kyoto Protocol compliance period which starts in 2008. Under the EU ETS, many companies, and especially those in the power industry, received substantial under-allocations of emission allowances and will have to obtain credits from the market to meet their compliance requirements. Non-compliance with EU ETS requirements has significant adverse financial consequences as penalties for non-compliance in the first EU ETS compliance period are € 40 per tonne of excess emissions plus the requirement that the entity still obtain the necessary emission credits (currently market priced at approximately € 20 per tonne) to be compliant. The second emissions compliance phase in the EU runs from 2008-12 (parallel with the first Kyoto Protocol compliance period) and will bring even tighter emission allocations and higher penalties (€ 100 per tonne) for non-compliance.
The ratification of the Kyoto Protocol by Russia and its coming into effect on 16 February 2005 has created from 2008 onwards a worldwide emissions compliance market with many interesting opportunities. For example, countries such as Japan and Canada are expected to be “short” in
respect of emission rights and accordingly such market players will have to source additional credits from the world market.
The existing combination of Noble’s coal and raw material portfolio, its excellent global contacts and positioning in the fast growing Asian markets, in conjunction with the new carbon credit team’s skills and market access, will allow the Group to pursue many promising emission market opportunities in the future.
The new carbon activities of Noble will operate from its Dublin subsidiary, Noble Carbon Credits Ltd. and supported by two offices in Frankfurt and Amsterdam. Leveraging off its current businesses and industry contacts, Noble plans to quickly expand this business worldwide
and sees itself as the first player with a global sourcing, marketing and portfolio management approach to this new market.
The activities of the new carbon team will initially focus on the global sourcing of CERs from Kyoto’s “Clean Development Mechanism” projects in developing countries and the sourcing of EU Allowances. Subsequently, Noble plans to become directly involved, through investment and otherwise, with greenhouse gas abatement projects.

Noble Energy expands into India

Noble Group, has hired Mr Ajay Mishra to expand its Carbon business in India and the Asia Pacific Region. Mr Mishra was most recently with TATA International. Mr Mishra has broad experience in the full range of carbon products (Coking Coal, Coke, Anthracite and PCI). Mr Mishra will be joined by other experienced personnel in forming the new Kolkatta operation of Noble Energy. This team will allow Noble Energy to capture geographic and product group synergies with the formation of this new office.
"Ajay and the team will be key in expanding Noble Energy role within the carbon market in India. It is a very exciting time in the Indian steel market and to be supported by the most experience team in the market place allows us a solid base to expand business going forward. This team will also support Noble Group’s other strategic relationships in India” said Mr William Randall, Director, Noble Energy Inc.

Quoting an article from BusinessWeek.
In Asia, A Hot Market For Carbon; The Market For Carbon Credits Is Cutting Pollution
In Developing Countries

BusinessWeek
19 December 2005

by Frederik Balfour

On the outskirts of Bangkok, generators fueled by methane from swine manure make electricity. In China's Inner Mongolia, wind farms are sprouting up along the breezy steppes. In India's Andhra Pradesh state, villagers power their tractors with a cleaner-burning diesel substitute pressed from seeds of the mighty honge tree.

What do these far-flung projects have in common? They're all the direct result of the 1997 Kyoto Protocol, a sprawling global initiative
to reduce emissions of greenhouse gases linked to global warming. The U.S. and a handful of other nations spurned this treaty, in part because it exempted emerging nations from making their own cuts. But the innovative financial systems that Kyoto inspired have made it relatively easy for developing countries to hop on board.

Under the Kyoto treaty, developed countries are required to cut emissions by an average of 6% from 1990 levels by 2012. Each
country is permitted to emit a certain number of tons annually of carbon dioxide or its equivalent. Governments then issue emission "allowances'' to polluters within their borders, and these can be bought and sold by companies worldwide.

Through this carbon trading system, big polluters in developed countries can pay companies in developing nations to cut emissions in their stead. Since many factories in developing countries use dirty, inefficient processes, it's often cheaper to clean them up than to replace the more modern equipment used in wealthy nations.

The system is helping foster green investments in countries that are home to some of the world's biggest polluters. In August, a Japanese consortium led by engineering outfit JGC Corp. and Marubeni Corp. joined up with a chemical maker in China's Zhejiang Province to recover gases released in making refrigerants. The deal will result in a reduction of the equivalent of 40 million tons of
CO2 -- creating credits worth about $200 million.

Sumitomo Corp. and Rabo Bank of the Netherlands have a similar contract with Gujarat Fluorochemicals in India for 3 million tons of carbon credits. And Paris-based chemical maker Rhodia is cutting nitrous oxide emissions at its plants in South Korea and Brazil.

Rhodia will likely sell those credits, equivalent to as much as 13 million tons of CO2.

Worldwide, developing countries are promising sweeping action, from cleaning up concrete plants, to sowing new forests that absorb carbon dioxide, to harnessing methane from landfills to generate power. So far, 39 projects have been registered with the U.N., and hundreds more are in the pipeline. Ultimately, the scheme could net as much as $12.5 billion for developing countries by 2012, the World Bank says. "There is a lot of appetite for these credits," says Edu Hassing, a project specialist with the Asian Development Bank in Manila.

Since the Kyoto accord took effect on Feb. 16, the market for emission allowances has soared. Most of the action is on the Amsterdam-based European Climate Exchange, or ECX. In the exchange's first month, 1 million tons of CO2 credits were traded. Next year, it's expected to be 700 million tons -- roughly 2 million tons a day -- and volume is expected to grow to some 4.8 billion tons in 2008. "It's a large baby for its age,'' says Sara Stahl, an ECX economist. The baby is getting richer, too.

Since the beginning of the year, prices have more than doubled, to $26 per ton of carbon dioxide.

So far, credit purchases from developing countries are relatively rare, and more often than not they're funded by public institutions
rather than private companies. For example, several European governments have pledged to buy up to $1.1 billion worth of credits through the World Bank, which is acting as matchmaker for companies in the developing world that want help funding cleanup efforts.

Recent examples include wind turbines with capacity of 26 megawatts in a remote part of the Philippines and a project to capture and harness methane gas released from coal mining in China's Shanxi Province that will cut emissions by 4 million tons annually. But as 2012 approaches and companies in the West realize it's cheaper to buy credits than to clean up at home, purchases of credits from developing countries are expected to soar.

There's little doubt that India and China will be big sources of credits. Both are industrializing at a breakneck pace with little regard for the environmental consequences, so there's no shortage of areas where pollution can be reined in. India has already negotiated dozens of carbon credit sales in projects ranging from hydro stations to harnessing methane gas released by decomposing garbage.

China, on the other hand, has been a relative laggard, with just three such deals so far. But many others are in the works. "China has
a huge potential to become one of the largest markets'' for pollution credits, says Kishan Khoday, team leader for energy and the environment at the U.N. Development Program in Beijing.

Some projects are clear winners. Gases released from making refrigerants, for instance, have 11,700 times the global warming potential of carbon dioxide. So capturing even small amounts can add up to huge numbers of carbon credits. Methane, meanwhile, does 21 times the damage of pure carbon dioxide, and it's a fuel in its own right, so harnessing it can offer a big payoff. Such projects are rarely undertaken without carbon trading, but with it they can be highly profitable, offering returns of as much as 30% per year, says Zhao Jianping, an energy specialist at the World Bank.

Other potential projects, though, will be harder to pull off financially. For example, in China it costs about 6.2 cents to produce a
kilowatt-hour of electricity using wind power, compared with 3.7 cents for coal. Current prices for carbon credits translate into a subsidy of roughly 0.6 cents per kilowatt hour, though funding initiatives planned by Beijing may make wind power more attractive.

How valuable will carbon credits become? Currently, credits cost up to 70% less than allowances because if a project falls through
and the developing-country partner doesn't clean up its act, the company that bought the credits is held responsible. "We must do
a hell of a lot of due diligence,'' says Thorsten Ansorg, director of Noble Carbon Credits Ltd., a subsidiary of Hong Kong trading firm Noble Group that has bought millions of tons of credits from developing countries. "We have no desire to buy something that never materializes.'' But as the market gets more efficient at separating smart projects from wishful thinking -- and as companies in the West struggle to meet their Kyoto targets -- prices are likely to rise. "As the deadline gets near,'' says Andres Liebenthal, an environment specialist at the World Bank in Beijing, "there is going to be a scramble'' for credits.

Clean & Green
Carbon credits are helping developing countries clean up their industry

COUNTRY PROJECT VALUE CARBON
(MILLIONS CREDITS OF (MILLIONS DOLLARS) OF TONS)

China Generating power using methane recovered from coal mining $17 4

India Recovery of gases released in making refrigerants $15* 3

Indonesia Capture of pollutants from cement production $11 2*

Guatemala 43-megawatt hydro plant to replace coal facility $5 2

Philippines 25-megawatt wind farm to generate clean electricity
$2.4 0.6

* BusinessWeek estimate Data: World Bank


Nuclear energy

“Noble seems well-positioned to prosper from Chinese growth,” said BusinessWeek. “With Beijing planning to build 30-plus nuclear reactors by 2020 to meet the country’s energy needs, Elman wants to get into the business of importing, transporting, and processing uranium for China.” The magazine also took note of Noble’s plans to participate in the global market for carbon credits, which the company sees as an emerging lucrative business as a result of emission-control laws.




I am a contrarian and I have faith in its management and CEO Richard Samuel Elman to bring this fantastic company to greater heights. I was stunned when some forumners in CNA commented that the company's management is incompetent.


Look back , and you realised that Noble was build up meticulously by its management.

Regarding the transparency issue, the management has had given enough reasons to reassure current shareholders. More details should be given as commented by Elman.

For more information on Noble Group's business model:
Noble Group Presentation 2005


The business model is clearly "undervalued" by fellow investors.





Noble Corporate Website







Hear the Media Briefing held on 23Feb2006


Cheers
Niversphere.


Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.

United Test and Assembly Center - Good Times Ahead

UTAC FY05 Net Profit More Than Triples To $41.8 Million On Doubling Of Revenue
• 4Q05 net profit highest-ever at $20.1 million, a five-fold increase over 4Q04
• 4Q05 revenue grew 19% QoQ, above prior guidance of 10-15%
• Record performance marks 10th consecutive quarter of sequential revenue growth and profit
• Guidance of 3-8% sequential revenue growth in 1Q06 vs 4Q05
• Target revenue growth rate of 40% for FY06



Group President and CEO of UTAC, Mr Lee Joon Chung, said, “We are pleased to have
achieved our 10th consecutive quarter of revenue growth and 7th consecutive quarter of profit growth. I would like to commend the UTAC team for achieving a splendid set of results, recording a milestone $100 million in revenue for a quarter while notching over $20 million in quarterly net profit.”



Company Background


The Company was incorporated in Singapore on 26 November 1997 under the name of United Test Center Singapore Pte Ltd and subsequently changed its name to United Test and Assembly Center (S) Pte Ltd in January 1999. It was converted to a public company limited on 15 May 2000 and changed its name to United Test and Assembly Center Ltd.

UTAC is a leading independent provider of test and assembly services for a wide range of semiconductor devices that include memory, mixed-signal/RF and logic integrated circuits. UTAC was ranked as the 9th largest independent provider of semiconductor test in 2002 by Gartner Dataquest. UTAC was ranked as the 8th largest independent provider of semiconductor test in 2004 by Gartner Dataquest.

Headquartered in Singapore, UTAC has manufacturing facilities in Singapore and Shanghai, as well as well-established sales network in Singapore, China, the United States, Italy, Japan and Israel.

UTAC offers full turnkey services that include wafer sort / laser repair, assembly, test, burn-in, mark-scan-pack and drop shipment, as well as value added services such as package design and simulation, test solutions development and device characterization, failure analysis, and full reliability test. The Company's manufacturing facility in Singapore is certified under ISO 9001, QS 9000, ISO 14001 and SAC Level I quality systems.

Its customers comprise integrated device manufacturers, fables companies and wafer foundries that design and manufacture semiconductors that power modern electronic devices. Its expertise in both memory and non-memory (mixed-signal/RF and logic) semiconductor devices allow it to provide wide-ranging solutions such as multi-chip packages that integrate memory and non-memory die. For the non-memory segment, its "BM/W" strategy focuses on further strengthening its capabilities in the faster growing Broadband and Mobile/ Wireless communications sectors

An Article from Dow Jones:
Utac plans expansion by first half of the year: Sources
UNITED Test & Assembly Center (Utac) is pressing ahead quickly with expansion plans in a sign that demand for chip testing and assembly remains robust.“Utac is looking at expanding the Singapore operations by the end of the first half of this year,” a person familiar with the matter told Dow Jones. A second source said the company would expand its Singapore operations by setting up “a new factory”. “They are also expecting to expand in Shanghai ... and are hiring more engineers there,” this second source said. A company spokesperson could not immediately comment. At Utac’s fourth-quarter earnings conference in January, its chief executive Lee Joon Chung indicated the company wanted to expand production facilities but gave few details.“We are looking at an expansion for new sites ... Our Singapore plant is getting quite tight in terms of capacity,” Mr Lee said. At the January conference, Utac forecasted a capital expenditure of US$180 million to US$200 million ($291 million to $324 million) for its current financial year to expand production in Singapore, Taiwan and Shanghai. Utac expects stronger take-up of thirdgeneration mobile handsets and demand for bluetooth and MP3 players to help it reach its target of a 40-per-cent increase in revenue in the current fiscal year. The chip assembler and tester posted a net profit of US$20.1 million for the three months ended Dec 31, compared with the US$3.8 million recorded in the corresponding
period — DOW JONES


Recent Developments For UTAC:

Media Release - UTAC Begins Testing of Satellite Communications Chip For GCT Semiconductor, Inc.

UTAC Selected As Prime Supplier For European Cordless Chip Maker SiTel

UTAC Attains Prestigious TS 16949 Certification For Automotive Sector

UTAC Starts Turnkey Production For Korean MP3 Chip Maker Telechips

Nepes Corp And UTAC To Invest US$30 Million In First 12-Inch Wafer Bumping Facility In Singapore

UTAC Starts Full Turnkey Production For Infineon's 512Mb DDR2 SDRAM

UTAC Strikes Alliance With RF Designer ARFIC; Becomes Partner In Singapore's ICommunity Consortium

UTAC To Be Preferred Partner For Nine Chinese Fabless Companies

Company recently gave its outlook & guidance

2006 capex to be $180~200m

− $98m has been committed in 4Q05 for delivery in 1H06
− Expansion of all sites
− Additional floorspace and capacity in Singapore
− Taiwan to begin MSLP and expand assembly
− Shanghai to begin assembly

Memory – DDR II growth gaining traction
− Chipset issue resolved, DDR II content projected to be >50% by 2H06
− Dual core processors PCs, new OS to drive up memory demand

NAND Flash market continue to be tight
− Additional test capacity in Taiwan
− New applications to sustain growth

Broad-based momentum for MSLP
− Business grew 30% q-o-q in 4Q05
− Faster 3G mobile growth with more 3G content made available globally
− Demand for Bluetooth, MP3 to continue with greater adaptation (eg automotive, PAN)
− Digital media will expand to include digital video


Screenshoots taken from Slides
















Management Optimistic About Company.
















UTAC operates in a cyclical industry. The investment returns should normally be good if a savvy investor can correctly identify the overall industry cyclical upswing.

UTAC will replace Great Eastern in STI on Wednesday 7th March 2006 and was given a weight of 0.75 which is relatively high.

Singapore's UTAC to replace Great Eastern in STI

See the new changes to the weights of the STI components.
(note: Only changes are shown)
Recapitalisation of STI Component Stock


Cheers
Niversphere.

Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.

Want Want Holdings - Hot Kid Leading The Way

1st Q 2005:
Revenue Up 29.6%
EPS Up 47%
2nd Q 2005:
Revenue Up 19.6%
EPS Up 31.48%
3rd Q 2005:
Revenue Up 23.1%
EPS Up 55.56%
4th Q 2005:
Revenue Up 51.5%
EPS Up 93.67%
FULL YEAR 2005 RESULTS:
Revenue Up 31.4%
EPS Up 55.7%

Background

The Company was incorporated in Singapore on 28 October 1995. It changed its name to Want Want Hldgs Ltd on 22 March 1996, in connection with the change in its status to that of a public limited company. The principal activities of the Company are those of an investment holding company. The principal activities of the Group's subsidiaries and associate companies are the manufacturing and trading of snack foods and beverages and related products and investment holdings.

The Group started with I Lan Food Industrial Co Ltd, incorporated in Taiwan on 31 May 1962 and produced canned agricultural products for export. In 1983, I Lan entered into a technical cooperation agreement with Iwatsuka to manufacture rice crackers in Taiwan. Iwatsuka is one of the top rice cracker producers in Japan. Since then, I Lan has achieved a profitable track record and established a strong brand name for its rice cracker products in Taiwan under its Want Want brand name.

Majority of the Group's production facilities are located in China with the remainder in Taiwan. Its products are distributed widely with China taking up a dominant share of sales, followed by Taiwan and other export markets.

For many years, we have seen the great branding success by Want Want. Everyone regardless of age, race or religion would definitely have seen the Hot Kid advertisement on our TV sets. I bet you might be humming to the tone already. I have always admired the innovative taiwanese branding capability, and Want Want's management never failed to impress me either.

See Want Want advertisements(if you haven't got enough of it):
Want Want advertisements

Want Want is definitely the dominant player in the rice crackers industry in China. It operates it in an increasingly competitive environment. Want Want's focus on branding and nice packaging gives them a durable competitive advantage over other competitive brands furthered strengthened by its savvy management.

Want Want made an excellent move in 2002 to introduce the market with another subbrand of its own, Yi Wang. Flipped over the package and you will see the bottom right hand corner, Want Want Holdings in orange bold. This is a strategic move by the management to flood the market and maintain market share while eliminating would be cheap competitions. Based on the lastest financial report, it shows that there is an decrease in the contribution on their subbrand. I would like to think that consumers are increasingly becoming brand conscious and their purchasing habits changed. Want Want range of products broadly categorised as rice crackers, milk products, snacks, candies, beverages (coffee and carbonated drinks).









See their company website : Want Want Website

Many gave doubts when Want Want ventured into building a hospital, Want Want Hospital. Want Want's management talk freely to investors about its affairs and do not clam up when troubles and disappointments occur.In addition, Want Want did share buybacks during in 2003 after BNP Baribas issued an unfavourable report on Want Want. This shows the strength in depth of the management of Want Want.

Based on the lastest balance sheet, it shows that the hospital is starting to show some contribution to the bottomline of the company.Earnings would have been higher by US$ 2.2m if not for the one-off writedown in negative goodwill for acquisition of Qianhe Hotel.



Link: Want Want Hospital

Want Want Holdings is a company with a broad heart and is definitely always welcomed.

"As we have benefited greatly from the support of the general pubic through our years of growth,the Company reciprocates with active involvement in various charitable causes.To-date,Want Want Foundation in China and Singapore,and two funds in Taiwan,namely Want Want Cultural & Educational Fund and Taipei Sze Jeu Welfare Fund Society,have been set up to provide assistance and support to the aged,poor and less privileged Company and major catastrophe."


I recently did a scuttlebutt on our local shopping malls.

. Want Want Xiao Man Tou





. Want Want Milk




. Want Want Crunchy Chocolate Wafers




. Want Want Rice Crackers - Seaweed




. Want Want Rice Crackers - Senbei(1)




. Want Want Rice Crackers - Senbei(2)






. Want Want Rice Crackers - Crequeline Au Riz



Competition





Want Want in its FY report stated the below market outlook:

􀂉 Expect key raw materials’ prices to remain stable
􀂉 Past effort in internal restructuring &
strengthening controls to be continued to yield
better results
􀂉 Non-food businesses to commence operation
Start-up losses expected but impact would not be
significant in 2006
􀂉 Continue focus in China given its vast potential
despite keen competition


I expect the Want Want brand to be around for many generations to come. Giving joy and laughter to both young and old. Bridging between generations.
给你旺旺，你旺我旺大家旺旺。


See Fisher's 15 Questions on how he evaluates a company.

Common Stocks and Uncommon Profits

So how do you find Want Want Holdings ? I would like to hear your views. Just add me a comment.

Want Want Annual Report 2004

Want Want AR Archive


Cheers
Niversphere.

Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.

Singapore's UTAC to replace Great Eastern in STI

Wednesday March 1, 5:51 PM

SINGAPORE, March 1 (Reuters) - Singapore's United Test and Assembly will replace insurer Great Eastern Holdings in the city-state's Straits Times Index benchmark stock market index as of March 8, Singapore Press Holdings said in a statement on Wednesday.

Second-Chance Stocks - By Bill Mann (TMF Otter)

If you invest, and you're honest with yourself, you'll look back on your actions and inactions and see things that cost you a heck of a lot of money. Two types can drive you particularly crazy: companies that you looked at and liked that proceeded to run into the stratosphere, and companies that you owned and sold that did the same.

Investing masochism
I keep a portfolio of these things, mostly because I enjoy torture. Most painful for me is my non-investment in Tatneft (NYSE: TNT), a Russian oil exploration and production company. In 2004, shares of Tatneft and other Russian/former Soviet oil and gas companies were hurt by concerns about how the Russian government had functionally nationalized the most valuable assets of oil giant YUKOS. Tatneft dropped from $30 to $20 per share. I was interested. I was excited. I wanted to read up a little more ...

...and the stock started rising, never looking back. It now sits at $105 per share -- a little expensive, but not very. That's a multibagger, missed. It wasn't the first. It won't be the last. It's always a mistake to anchor your buys and sells on the price at which you first saw them, because businesses change with price. But still, for those of us who looked hard at USG (NYSE: USG) when it traded below $10, it's hard not to do this.

Sometimes, once-in-a-lifetime chances happen, well, twice. (At least.) Sometimes the reason for the stock's retracement is clear, and sometimes it's just straight volatility. Motley Fool Hidden Gems Watch List stock Denny's (Nasdaq: DENN), a bona fide turnaround company, has seen its shares move rapidly between $4 and $6 per share and back again. That's not the stuff multibaggers are made of, but it's a big move nonetheless. Sometimes companies really do give you several chances to buy at a good price.

Cheap is cheap
Keep in mind: That "good price" may not be as low as you'd like. How many times have you looked at a company and said, "Wow, this looks great! I wish I had seen it six months ago when it was a whole lot cheaper!"

When companies give you a second chance, the tumble in their stock price usually relates to bad news. Most investors will buy into the negativity and hold off on buying, worried that the shares will drop further. But a good price is a good price. And if that price gets a wee bit better -- or a lot better -- in the following weeks, it doesn't matter; if you're right about the company's prospects, eventually the market will agree with you. (This is much easier to do with companies that you know particularly well, so be sure to do your due diligence.)

While we preach long-term investing, sometimes opportunities can be fleeting. General Dynamics (NYSE: GD) doesn't drop down to $50 per share for long (as it did suddenly in early 2003). Procter & Gamble (NYSE: PG) doesn't lose 40% of its value for long (as it did in 2000). Home Depot (NYSE: HD), one of the great growth stories of the past decade, lost 70% of its value, from $70 to $20, among titters that the company was being killed by rival Lowe's (NYSE: LOW). It gave all those people who missed out on the Home Depot machine the first time around a second bite at the apple. How many did so?

The Foolish bottom line
When companies and stocks become detached from one another, you need to be ready. The great investors, from Warren Buffett to David Nierenberg to Peter Lynch, recognize that when the market is gloomy about companies, it's almost always the right time for you to be interested.

News Excerpted from http://www.fool.com/news/commentary/2006/commentary06022207.htm

I Turned $3,000 Into $210,000 - By Selena Maranjian (TMF Selena)

This article sports quite the headline, doesn't it? It might smack of exaggeration. But believe it or not, it's true. Come with me now, on a journey into the past.
How it happened
Picture it: New Jersey, 1995. I was not yet a Fool employee. Perhaps like you, I was an avid reader of the online site. The Fool-founding brothers, David and Tom Gardner, were occasionally recommending stocks, and in this case they picked an online service provider called America Online (AOL).

I was still quite new to investing, and didn't know enough to do much of my own research. But at least I had one thing going for me: I was an AOL customer. I used the service every day and liked what I saw of its user-friendliness, usefulness, and potential. So I bought. I snapped up $3,000 worth of shares and hung on.

Over the following years, the stock would go up and down, sometimes significantly, but I kept holding on. And overall, it mainly went up, and it split and split. I remember checking very regularly -- several times a day! -- how rich I was becoming. I think that near the stock's peak, I was in possession of a 70-bagger! My $3,000 investment had become worth $210,000. If it doubled in value only two more times, I'd be (almost) a millionaire! All from a measly $3,000 investment.

Did I sell shares along the ride up? No. Did I sell at least some near the top, when my mom told me to? Nope. (That strange thudding sound you hear is me kicking myself.) I kept holding on. AOL merged with Time Warner (NYSE: TWX) in 2001, and ever since then, the stock has struggled. I remember when the shares were priced in the $70s. But it's a fuzzy memory. They've been below $20 for almost four years now. I did sell a big chunk of my shares -- in the teens -- when I needed money for a down payment on my house. And I finally got smart and sold some shares to diversify into some other stocks instead of holding such a big chunk of my net worth in a company in which I no longer had the most faith.

I still hold some shares, though, and despite my inclination to curse my stupidity at not selling earlier, I'm still sitting on a handsome profit, even at current levels. My cost basis is ridiculously low, and this has still been one of my best investments, ever. I really shouldn't complain.

How you can do it
If any of this story appeals to you, know that you have a chance to make it yours -- perhaps with an even happier ending, if you make a few decisions differently:

First, pay attention to products and services you know, use, and love -- especially if you see more and more people using them. There may a great stock behind them, no matter whether they're big or small companies. There are some wealthy people out there who years ago noticed that a coffee vendor named Starbucks was starting to spread out. And some early users of eBay's service probably saw the financial potential of the company long before you and I did. There are plenty of well-known companies that have done phenomenally well over the past decade or two. Women's-apparel retailer Chico's FAS (NYSE: CHS), for example, has rocketed ahead nearly 100-fold since 1993. Large-cap titan Citigroup (NYSE: C) has been a 23-plus-bagger over the past 20 years. Consumer-goods stalwart Procter & Gamble (NYSE: PG) has been more than a 20-bagger in the same period.

Along those same lines, be wary of what you don't understand.

If you buy in to such a company, buy to hold. As long as you have faith in the company's future, it's often best to just hang on, despite inevitable hiccups. Don't let some naysayers in the media get you out of a stock because of short-term concerns when you still have long-term confidence. Consider Microsoft (Nasdaq: MSFT). For its earliest investors, it's been more than a 250-bagger. For those who've hung on for just the past decade, during which the company was criticized for having missed the boat on the Internet, it's quintupled their money -- still not bad, eh?

Do consider selling at least some of your shares if they rise to levels you can't justify. That was my main mistake -- irrationally and greedily hoping to get even richer. If a stock is trading for more than you know in your heart that it's worth and you still hang on, you're no longer investing -- you're speculating, at great risk.

Finally, consider checking out the stocks that David and Tom Gardner are recommending now. They have some darned impressive track records, and you can access their ideas for free. Their Motley Fool Stock Advisor newsletter service, launched in April 2002, offers two picks (and two investing styles) each month. Their returns since inception speak for themselves: On average, their recommendations are up 59.5%, vs. 22% for like amounts invested in the S&P 500. Those gains are in part made up of NVIDIA (Nasdaq: NVDA), a David pick that has more than doubled in about a year, and Tom's pick Quality Systems (Nasdaq: QSII), which became an eight-bagger for some investors after rising more than 700%. They have a few losers, of course, but those two picks show just how fast money can grow. You can try Stock Advisor free for 30 days -- and you'll have full access to past issues' recommendations.
Here's to big profits in your future!

(Consider forwarding this article to anyone you care about. Just click on the "Email This Page" link near the bottom of the page.

Singapore's Tat Hong rated 'outperform' - Credit Suisse

My analysis on Tat Hong.

Tat Hong Holdings - My Singapore Portfolio

Analyst Report on Tat Hong Holdings

Tat Hong Eyes Further Expansion Into Overseas Market



SINGAPORE (XFN-ASIA) - Credit Suisse said that it has initiated coverage of heavy equipment leasing firm Tat Hong Holdings Ltd with an "outperform" rating and a one-year target price of 1.05 sgd.

"With mega-projects in the oil and gas and infrastructure sectors on the rise, management has confidently predicted a 25 pct earnings compound annual growth rate through [the year to March] 2008," Credit Suisse said.

"We believe this is, indeed, likely and it suggests the stock [is] worth more than the current market price," it said.

Credit Suisse forecasts Tat Hong net profit for the year to this March at 31.2 mln sgd, up from 20.6 mln sgd the year before, and for the year to March 2007 at 36.3 mln sgd.

At 10.09 am, Tat Hong was up 0.025 sgd or 2.99 pct at 0.86, on volume of 2.00 mln shares.

geraldine.chua@xfn.com


Cheers
Niversphere
Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.

Hongguo: Riding on the Needs of Modern Woman

For readers and investors whom might not have seen C.banner or E.Blan Shoes. I have included here some pictures of their shoes. As an avid photographer myself, I am disappointed by the pictures taken by them.

Hongguo Advertisement














Rewarding loyal customers.



千百度VIP至尊会员章程



Technical Analysis 01

Technical Analysis 02

Cheers
Niversphere.

Taken from http://www.gdhz0752.com/


Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.

Company Update : Hongguo Riding On The Needs Of Modern Woman

Excellent set of results. High Double digit growth with improving net profits and increasing mix of excellent products. Management is savvy in brand building, ambitious in aggressive expansion. Influx of joint ventures with well known brands.


What else more can you expect ? Dividends are for stable companies. Not giving dividends is a sign of a growth company. Some companies tries to hard to please shareholders with dividends after listing.To give dividends and yet at the same time borrow money which you have to pay the bank interest on unless the company can spend the money better like Hongguo, its wise management.


My previous post:
Hongguo International - Riding on The Needs Of Modern Woman


Cheers
Niversphere.


PRESS RELEASE – FY2005 RESULTS
SGX-LISTED CHINESE LEADING FASHION GROUP
HONGGUO FY 2005 NET PROFIT GROWS 33.8%


C Banner ladies shoes have become the second most popular shoe brand in PRC in FY 2005

Retail outlets increased to 615 at end of FY2005 from 487 a year earlier.

Growth propelled by continued strong demand for inhouse brands and increased capacity from higher production capacity in Nanjing and Dongguan

Group has achieved three-year compounded average annual growth rate of 29%


SINGAPORE – 20 February 2006 – Singapore Exchange Mainboard-listed Hongguo International Holdings Limited (“Hongguo” or “the Group”) announced today that its net profit attributable to shareholders grew 33.8% to RMB 70.8 million (S$14.45 million) in the financial year ended 31 December 2005 (“FY2005”), continuing its trend of sustained strong bottom-line growth.


The leading fashion group in China said the net profit was achieved on the back of a 44.2%- rise in revenue to RMB 424.5 million (S$86.6 million) in FY2005 from RMB 294.5 million (S$60.1 million) in FY2004, driven by the growing demand for Hongguo’s in-house brands. Hongguo has posted a compounded average annual growth rate of 29% since the start of FY2003, the year of its public listing. Earnings per share rose 38.5% to 0.18 RMB cent in FY2005 from 0.13 in FY2004 while Net Asset Value backing per share rose to RMB 0.79 as at 31 December 2005 from RMB 0.65 as at 31 December 2004.

The Group has benefited from the aggressive expansion of its distribution network, with the number of retail outlets increasing to 615 at the end of FY2005 from 487 a year earlier, exceeding previously announced estimates of 607 outlets. Retail sales, which contributed 87.3% to Hongguo’s FY2005 revenue, registered a 56.4% increase to RMB 370.8 million (S$75.7 million) from RMB 237.1 million (S$48.4 million) a year ago. To cope with rising demand for its in-house ladies’ shoes brands C.Banner and E.Blan, the Group has deployed more manufacturing capacity at its new plants in Nanjing and Dongguan, both of which were completed in FY2005, thus raising total annual production capacity to 2.52 million pairs of shoes, 50% higher than the 1.68 million of FY2004.

Hongguo also announced today that it would invest RMB 8 million to expand its design and logistics centre in Guangzhou. When completed by end of FY2006, design capability will increase from 1,000 to 4,000 models per year.

In line with its growth strategies, 100%-owned fashion brand distributor Jiangsu Unity Corporation (“JUC”), which was acquired in June 2004, contributed RMB45.9 million (S$9.37 million), or 10.82%, of the Group’s total revenue in FY2005. With more retail outlets, as well as a possible expansion in brand portfolio, JUC – which has distribution rights in parts of China for several well-known foreign fashion brands such as Ermenegildo Zegna, Max Mara and Byford – is expected to contribute more substantially to the Group in future. Two Tommy Hillfiger stores will open in FY2006.

Commenting on the FY2005 performance, Hongguo’s Managing Director, Mr Li Wei, said, “Our in-house brands have continued to gain ground and market share despite increasing domestic competition.
Our flagship “C.Banner” was recently named the second most recognised brand of ladies’ shoes in China by the China Industrial Information Issuing
Center.

The Group plans to increase the total number of retail outlets from 615 to 730 outlets by end of FY2006.


“We have invested in brand-building efforts, design capability as well as increased capacity and distribution network to stay ahead of the competition while achieving economies of scale and hence maintain operating margins. Demand for quality fashion wear in China continues to grow with rising affluence. With our combined strategy we are confident of continued growth in the near future,” he said.


About Hongguo International Holdings Limited

Hongguo, listed on the Mainboard of Singapore Exchange since 5 June 2003, is a specialised designer, manufacturer and retailer of fashion wear headquartered in Nanjing, China. With manufacturing facilities in Nanjing and Dongguan, Hongguo shoes (under inhouse ladies’ shoes brands C.Banner 千百度and E.Blan 伊伴) are available at over 615 points of sale across China’s major cities and provinces. In 2005, C.Banner was ranked second in terms of market share up from the third position it held for three consecutive years, according to an annual market survey of the ladies’ leather shoes industry conducted by the National Statistics Board of China. Apart from its principal business in footwear, Hongguo also wholly owns Jiangsu Unity Corporation, a retail management company distributing fashion brands such as Ermenegildo Zegna, MaxMara, Byford, G2000, U2 and Hugo BOSS in China.

For more information, please visit www.hongguo.com.

http://www.listedcompany.com/ir/hongguo/newsroom
/HongguoResultsPressRelease200206.pdf

INVEST IN PRODUCTS & SERVICES

Even our feeble-minded caveman ancestors were clever enough to limit their investments to well-understood tools... like a club or stone axe-- and seldom ventured very far beyond unfamiliar territory to avoid unfamiliar predators. You too should be wise to the advantages of investing only in companies whose products and services you understand and in markets you are intimately familiar with.

Quite often, we regionalize our investments. We think we know and understand the local industry and the company where we work. Investors from Arkansas invest in Wal-Mart. Californians buy Silicon Valley stocks. Seattle residents feel comfortable with Microsoft, Boeing or Starbucks; Texans invest in the oil industry. New Yorkers feel they know the media and advertising industry. What is amazing is the number of Asian investors who seek out all these USA stocks on the other side of the planet!

However, you don't want to invest in auto manufacturers just because you drive a car or because you live in Detroit (or Thailand and China where many auto parts are manufactured today). Nor should Floridians buy Disney or orange juice makers, or Singaporeans buy Singapore Airlines just because they fly to Hong Kong once a year. It's more than just knowing something about the company that you're investing in and the products those companies make or the services those companies provide. You also need to know that the stock you're buying is an excellent value and that the company is part of a growing industry.

A good test is to ask yourself if you could explain your investments to a ten-year-old. That may help you determine whether or not you really know what you own.

The wild swings in share prices are really your friend. Be careful of groupthink that is so prevalent in the stock market. Warren often quote his teacher Ben Graham as saying, 'You are neither right nor wrong because the crowd agrees or disagrees with you. You are right if your principles, research, date, future projections, and reasoning are right.'

The major university head librarian who said about Buffett, 'You know, Warren is a great future investor,' meant that he is able to predict the future stream of earnings of a business and industry and buy it at a discount to its real value for the long term.

All investors must look into the future. In 1979 in Forbes magazine, Warren said, 'The future is never clear. You pay a very high price in the stock market for a cheery concensus. Uncertainty is the friend of the buyer of long-term values.' Buying when everyone is selling and selling when everyone is buying is the old adage on how to make money in the stock market, but that's easier said than done. However, if you know what you own and understand why it is such an excellent value, then you position yourself to take natural advantage of the adage.

Learning to understand what you own is a matter of learning to ask the right questions of the right people. Remember the story of the fellow standing next to a dog and a stranger approached and asked, 'Does your dog bite?' The fellow said, 'No,' so the stranger reached down and petted the dog and the dog bit him! Alarmed, the stranger said, 'I thought you said your dog doesn't bite.' The man said, 'Well, that's not my dog.' The moral of the story is to know to ask the right questions to the right people in order to truly understand.

Berkshire's largest investment of a partly owned business or stock is Coca-Cola, and it provides an excellent example of knowing what you own. As a young lad Buffett sold bottles of Coke door to door in his neighborhood, and as a teenager he was in the vending machine business with his pinball machines, but he didn't rely entirely on these early experiences to understand his billion-dollar investment.

For all of his early years and most of his adult life, Warren drank Pepsi-Cola, some say even that at one time if you cut his vein, Pepsi would come out instead of blood. So he personally understood the competition.

Next he read everything he could about The Coca-Cola Company: how it was founded, grew, and expanded, and its market share, international expansion, and management. Like GEICO thirty-five years earlier, Buffett could have written an extensive stock analyst's report of the security he likes best: Coca-Cola. After careful and thorough reading and research, he noted that Coke's management was buying back its own shares. The last thing he wanted to do was tip his hat and let management know he was interested in buying. So he quitely purchased $1 billion of the stock.

Like the average investor, Warren had no exclusive or insider information. Unlike the average investor, he studied and understood what he was buying. The soft-drink beverage business is not a very difficult business to know. Figuring out when it is selling at an excellent value compared to its future earnings is the genius part.

Coca-Cola earned 42 cents per share in 1989, so Berkshire paid 15.5 times what it was then earning with an average price of $6.50. Book value was $1.18 per share, so it paid 5.5 times book. Buffett was paid back with actual net earnings in 9 years, nearly one half of the projected earnings payback time. Meanwhile, book value has quadrupled, the stock price has climbed 7-times, Coke earns 3-times more than when it was first purchased, and management continues to buy back its shares (10% since Buffett's purchase), which gives the shareholders in essence a nontax dividend making the remaining 90% of shares more valuable.

Today Coke sells over 1 billion servings (out of a total of 50 billion) a day and continues to enjoy worldwide leadership of the soft-drink beverage industry. So with just 2% of the world market, Coke has enormous growth opportunities ahead.

This type of analysis is all very easy to do in hindsight and over a decade later. The difficulty is being able to see the wonderful investment opportunity in advance, which is what makes Warren Buffett's talent so profound.

Notice how patient Buffett is and hos thoroughly he understands what he is doing. A half-century after he was selling Coke door to door and more than a century after it was first formulated, he made a substantial purchase.

The husband of famed author and mystery writer Agatha Cristie was an archaeologist. 'That was the best occupation for a husband,' said Agatha, 'because the older things get, the more interested he becomes.' Warren invests like an archaeologist-- the older things become, the more interested he is.

Sage@wallstraits.com


Credits: Much of this article (with modifications) is extracted from Ch. 5 of Warren Buffett Wealth by Robert Miles, 2004.

Article excerpted from http://articles.wallstraits.net/articles/1358

House Ownership Important to The Poor ?

Let presume you are the lower range of the age target 35. Payment of $200 per month from your monthly $1000. That's already 20% of your income provided it is already disposable income. Poor people I know of dun even earn that $1000 disposable income. Govt building 2 room flats and wants poor people ownership would not work. That would only provide an "incentive" to sink them into greater debt. Does the government guarantee that the poor fellow will be employed for the next 20 years till he is 55 years old while earning that $1000. Any hiccups in the economy, that poor fellow bears the brute force. I would rather that the government "teach" the way how to fish than providing them the easy bait. The focus on job re-creation is excellent, works for them and contributes to the economy, and the focus should still be this. Maybe we Singaporeans should move with the global trend to rent apartments to rent houses rather than actual flat ownership. Renting houses frees up more disposable income than having assests frozen in living houses. He cannot sell because he lives in it. He cannot benefit from the sale, he does not know how. That poor fellow is not going to benefit much from living in that house, coping with day to day living is already hard enough assuming he/she has no kids. My recommendation is that government builds these new 2 room flats and then rent out these flat at a subsidized rate. Help the poor achieve better cashflow while creating more substainable jobs for them which they are already doing. Educate the children borned in a poor family free of their limiting beliefs. Instill correct working attitudes and inspire them to get out of the poverty circle. Education dont come cheap here in Singapore so do public transport. With more disposable income, they can provide more for their kids with additional help of bursaries from the govt.

I will help the poor when I get more successful, but in a way that really helps them in a real substainable way. 取之社会， 用之社会. I really hate to see talents go to waste because they are "handicapped" not physically or mentally but in money terms. Money is always printed in the mint, but life is finite and God given.


Enjoy today.



Cheers
Niversphere.

News Excerpted from CNA
Government to start building 2-room flats before year-end
By Asha Popatlal, Channel NewsAsia


The government will start building new 2-room flats before the end of the year.

It is currently assessing what the demand is likely to be and where to build these flats.

National Development Minister Mah Bow Tan, speaking to reporters after a community event on Saturday, said certain criteria would however apply to interested buyers.

These include an income ceiling so that lower-income families will not have to compete with others to get these 2-room flats.

After all, Mr Mah said, the idea of such grants is for this group to be able to afford their first home as soon as possible and to have assets when they retire.

Another criteria will be that at least one member of the household must have worked over the last 2 years in line with the philosophy of workfare.

Mr Mah said: "There will be demand from 2 categories of people. Those who are downgrading - elderly, lower income who may not meet repayments and may want to down size. The second category are the low income and anyone who may not be able to afford larger flats. Two-room flats are a good way for them to get started and own their first flat and as salary increases, as their children start working, they can upgrade."

Mr Mah also told reporters that the government is also looking at releasing a piece of land on a short 30-year lease basis that could ideally be used to build a retirement village, although its ultimate use will be up to private developers. - CNA/ch


News Excerpted from CNA
Lower-income workers welcome housing grants for flat purchases
By Hasnita A Majid, Channel NewsAsia


Low income-earners have welcomed the measures announced in the Budget on Friday to help first-timers buy their own flats.

They can receive a housing grant of up to twenty thousand dollars.

Property agents say that the measure will certainly help this group get affordable housing.

41-year-old Arivuazahagan and his family have been living in a one-room rental flat for the past 19 years.

Although he pays slightly more than S$40 to rent the flat every month, he wants to buy his own place.

But the sole breadwinner of the family who earns less than S$1,500 a month as a security guard has been waiting for his elder son to complete his national service before he buys a flat.

He said: "I am only waiting my sons to be stable. When they finish NS, they can work and get some money so my CPF can buy house. If I want to buy house, at least 2 to 3 persons work then it is comfortable."

With the new housing grant that the government has announced, Mr Arivuazahagan will stand to receive up to S$60,000 - the maximum grant of S$20,000 as he's earning below S$1,500 a month - and another S$40,000 if he's buying a resale flat near his parents.

And he is already looking forward to a three-room flat so that his sons can each have a room of their own.

A better option for him, say property agents, is to buy a new two-room flat that the government is planning to build.

Chris Koh, Director, Dennis Wee Properties, said: "First a 2-room flat I foresee HDB will price it at about S$70,000. With a S$20,000 grant added on, means effectively I pay about S$50,000 for that flat so S$50,000 if I were to divide it again, maybe over a 20-year loan and that will result in an instalment of about S$200. It's definitely payable because with a S$1000 salary, assuming that we are talking about the age group of 35-45 with a contribution of 20-30 percent to the CPF account, then I'll have sufficient instalments so that may be a better option for someone with lower income."
Alternatively, Mr Arivuazagahan could also consider a 2-room resale flat that's available in the market to get maximum benefits from the grants.

Under current regulations, first-time buyers of resale flats are eligible for the grant of $30,000 or $40,000 if the resale flat is near his or her parents.

The grants are not eligible for new flats.

There are currently 6,294 two-room flats that are currently owned by Singaporeans, with another 23,057 rented out in the market.

Mr Koh said: "Two-room flats are very popular. In fact not a lot of people want to sell them. The people who own them are of a higher age group. In fact when there's a flat to sell, we get a lot of calls from retirees. Retirees who downgrade, pay the flat fully and not have any loans. You do see people in two-room flats in areas like Bedok and they are very sought after. You don't see them coming up for sale so often but when they are up for sale, we get a flood of calls for that flat. It's quite easy to sell because there's demand for it."

Property agents suggest that the government should look into allowing the new housing grant to be used to pay the monthly instalment of their flats and not just as down payment.

Mohamed Ismail, CEO, Propnex, said: "For the existing grant of $30,000 to $40,000, the current requirement here is that one has to utilise towards all the down payment. Leaving it in the CPF to pay towards the instalment will definitely help the lower income, especially one who's earning below $1,000."

"He does not want to be burdened by the monthly commitment and if this top up can be used towards the monthly instalment, then it will again free him from other commitments or whatever costs of living that one has to take care of."

The new initiative to help low wage earners buy their own flat is expected to benefit some 6,000 households per year.

It is part of the government's aim to help up to 90 percent of Singaporeans to own their homes. - CNA/ch

The 7 Habits of Highly Effective People - Stephen Covey

Habit 1: Be Proactive

This means more than just taking the initiative. It means taking responsibilty; our behaviour is a function of our decisions. All of us have a wide range of concerns -- our work, our health, our children, the national debt, nuclear war, whatever they may be. If you put them inside a circle you could call it your "circle of concern". Within that circle, there are some things over which you have no control. But there are otheres you can do something about. The latter group you can call your "circle of influence". Being proactive means widening your circle of influence working on the concerns you can do something about.


Habit 2: Begin With The End In Mind

This is based on the principle that "all things are created twice" : first in the mind, and then in reality. Before you can construct a house, You have a clear image of what you want to build. Before you go on a trip, you determine your destination and plan the best route. Before you give a speech, you create it in your mind or on a paper.


Habit 3: Put First Things First

This is the fufilment of Habits 1 and 2.


Habit 4: Think Win-Win

Seek to promote mutual benefit in your interactions. It's a superior outcome to win/lose("I get my way, you don't get yours) or lose/win ("I lose, you win") or lose/lose("when two determined stubborn, ego-invested individuals interact") or just "win" ("its irrelevant if anyone loses as long as I get what I want.") In some situations(like a football match) a desire to win/lose is appropriate. However, most situations involve interdependance and win/win is the only viable option.


Habit 5: Seek First To Understand, Then Be Understood.

The first part of this habit involves "empathic listening" the highest form of listening, in which you listen with the other person's frame of reference, rather than your own. This provides you, as a listener, the most accurate data to enable true understanding. Only then can you focus on influencing or problem solving. It;s like a doctor diagnosing accurately before prescribing. The second part of Habit 5 -- "be understood" involves presenting your own ideas clearly, specifically, visually, and contextually, thereby enhancing their credibility.


Habit 6: Synergise

The essence here is to constantly try to seek alternatives, which were not there before through creative cooperation. Two pieces of wood together can hold much more than the total of the weight each can hold seperately. You can achieve synergy by communicating synergistically and opening yourself to new possibilities and options. The key to achieving synergy lies in valuing the mental,emotional and psychological differences between people and recognising that people see the world not as it is, but as they are.


Habit 7: Sharpen The Saw

Ensure that you preserve, enhance and constantly renew your own personal assets -- physical, social/emotional, mental and spiritual -- which makes it possible for you to practise the first six habits.



The Eighth Habit: Find Your Voice And Inspire Others To Find Theirs
This enables you to reach beyond effectiveness, to greatness. Whereas the seven habits have more to do with success, the eighth has more to do with significance, whereby you make a difference. You start with yourself by unlocking your "birth-gifts" your talents, capacibilities and opportunities. Then you inspire others by communicating to them their worth and potential so clearly that they are able to see it themselves.

Hongguo :: Another view from female customers

Complaint links by female Customers on Daphne shoes' poor quality.

Woman have take their complaints another level. Online. Hahaha ... Just joking or was I ?

1. http://www.315ok.com/sview_mod.php?vclass=%BD%FC%C6%DA%CD%B6%CB%DF&id=8645&s=%D0%AC
2. http://www.66163.com/315/ty_view_mod.php?id=15
3. http://www.bj315.org/leavword/readbbs.asp?SubjectId=2299&Id=4012
4. http://club.women.sohu.com/read-fashion-532414-0-40.html

Cheers
Niversphere

Fed Chief - Ben S.Bernanke

As I was watching CNBC on the new Federal Reserve Chief, Bernanke LIVE at Capitol Hill. One of the policy makers mentioned that Bernanke was a teacher before.

*Ding* ... Guess what I found on my book collection.







All of a sudden, this adds to the cool factor for this book. A book co-written by the new Federal Reserve Chief, Ben S.Bernanke.




Cheers
Niversphere.