China’s largest contract chipmaker by capacity, announced sweeping management and strategy changes and said it was negotiating a fresh capital injection following a widening loss last quarter.
The company “confirms that it is currently in negotiations with an investor in respect of a proposed investment in the company”, SMIC said.
Mr Wang was installed in November to replace Richard Chang, the company’s founder and long-time CEO, after SMIC settled a long-running legal battle with Taiwan Semiconductor Manufacturing (TSMC) by agreeing to pay the market leader $200m and give the Taiwanese company a stake of up to 10 per cent in SMIC.
The settlement widened SMIC’s loss to $482.3m in the fourth quarter from $139.5m in the same period a year earlier despite a 20 per cent rise in revenue to $333.1m.
Together with the results, SMIC announced that Simon Yang would take over as chief operating officer; and chief technology officer Gary Tseng as chief financial officer; and Chris Chi as chief business officer.
Mr Yang comes from Chartered Semiconductor, SMIC’s larger rival. Mr Tseng worked at China Solar Corporation with Mr Wang before and was at Quanta Computer, UMC, the world’s second-largest contract chipmaker, and Philips Taiwan.
Mr Chi is a former consultant and has also extensive experience at other contract chipmakers including UMC and Chartered.
In his first conference call with analysts, Mr Yang said he wanted to make SMIC more efficient and put it on track to sustainable profitability.
“Our first priority is to reduce cost,” he said, pointing to the fact that TSMC’s revenues were eight times that of SMIC with double its headcount, and UMC was achieving three times SMIC’s revenues with the same workforce.
“Since I joined, we have made it a priority to improve our cycle time,” Mr Wang said.
SMIC has struggled since the company opted to build decentralised “fabs” – facilities for contract chipmaking – on the back of government incentives. This footprint has made it more difficult to build fast, smooth production processes unlike its competitors who typically build clusters of fabs in one place.
For Friday's closed - SMIC's ADR was traded higher too, so coming Mondsy SMIC will continue it's climb when HKex starts trading. Happy trading, cheers!
Friday, March 26, 2010
Dow - friday's close
Barely hanging on for it's dear life after starting "smartly" at start. By mid-day, it is sinking. Same thing happen like yesterday.
What is in stores for us next week???? If we take today's trading pattern then I would say that the 2 day's pattern is showing that....the market take noted of what's happening around the globe.
With Greece's problem....more or less settled, the Dow still not showing a good respone to that can only means one thing....Market is very tired and it's going into
retreat soon. How deep? I have no idea.
NEW YORK (AP) -- The stock market looks tired.Stocks closed mixed for a second day after investors grew pessimistic about the market's ability to keep its rally going.
The Dow Jones industrial average rose 9 points Friday. It had been up as much as 68 after European leaders announced a plan to help Greece with its debts. A similar advance and retreat occurred Thursday.
There wasn't a clear reason for stocks' retrenchment Friday. But analysts said the market does need a break from a climb that has now gone on for two months with few interruptions. The Dow has advanced 17 of the last 21 days.
"The market is extremely vulnerable to a pullback," said Christian Bendixen, director of technical research at Bay Crest Partners in New York.
Even with the mixed finish Friday, major stock indexes still managed to rise for a fourth straight week.
The early gain in stocks came after the European Union and International Monetary Fund created a bailout program that will help Greece and other European nations facing rising debt. The deal reached late Thursday will not make money immediately available to Greece, but instead act more as a safety net.
"It reinforces there will be a rescue and support for Greece," said Oliver Pursche, executive vice president at Gary Goldberg Financial Services. "It lays the groundwork for future rescue packages."
Investors have worried that mounting debt problems in places like Greece, Portugal and Spain would spread to other countries and hamper a global economic rebound.
The reassurance that Greece will get aid, if necessary, helped the euro rise against the dollar. The euro hit 10-month lows during the week.
But the gains faded as traders became uneasy after the extended string of advances, which have come on light volume. When trading volume is weak, investors often worry that only a small number of buyers are driving the market higher.
"Investors may be trigger-happy to lock in gains at any sign of selling," said Michael Sheldon, chief market strategist at RDM Financial Group.
What is in stores for us next week???? If we take today's trading pattern then I would say that the 2 day's pattern is showing that....the market take noted of what's happening around the globe.
With Greece's problem....more or less settled, the Dow still not showing a good respone to that can only means one thing....Market is very tired and it's going into
retreat soon. How deep? I have no idea.
NEW YORK (AP) -- The stock market looks tired.Stocks closed mixed for a second day after investors grew pessimistic about the market's ability to keep its rally going.
The Dow Jones industrial average rose 9 points Friday. It had been up as much as 68 after European leaders announced a plan to help Greece with its debts. A similar advance and retreat occurred Thursday.
There wasn't a clear reason for stocks' retrenchment Friday. But analysts said the market does need a break from a climb that has now gone on for two months with few interruptions. The Dow has advanced 17 of the last 21 days.
"The market is extremely vulnerable to a pullback," said Christian Bendixen, director of technical research at Bay Crest Partners in New York.
Even with the mixed finish Friday, major stock indexes still managed to rise for a fourth straight week.
The early gain in stocks came after the European Union and International Monetary Fund created a bailout program that will help Greece and other European nations facing rising debt. The deal reached late Thursday will not make money immediately available to Greece, but instead act more as a safety net.
"It reinforces there will be a rescue and support for Greece," said Oliver Pursche, executive vice president at Gary Goldberg Financial Services. "It lays the groundwork for future rescue packages."
Investors have worried that mounting debt problems in places like Greece, Portugal and Spain would spread to other countries and hamper a global economic rebound.
The reassurance that Greece will get aid, if necessary, helped the euro rise against the dollar. The euro hit 10-month lows during the week.
But the gains faded as traders became uneasy after the extended string of advances, which have come on light volume. When trading volume is weak, investors often worry that only a small number of buyers are driving the market higher.
"Investors may be trigger-happy to lock in gains at any sign of selling," said Michael Sheldon, chief market strategist at RDM Financial Group.
Next week trading....theme!
From Dow Friday's close...in fact for Thu also same pattern. Started well....and by the end of the day, the gain is about gone! This show that the market is very tired or has deeper problem as it cannot hold on it's earlier gain daily.
Therefore I think...that the whole market here and HKex is looking tired and best to avoid them for awhile. For me....the best way is to slowly clear of my positions till only leaving behind my core stocks which is SMIC in HKex and Noble in here.
For SMIC....any price below HK$1 is good price esp now at 93 cts. Looking at it, it is very cheap now and for the past 3 weeks it has move up nicely and still at "1/3" it's IPO price. That for me...show that there is great potential of a huge push upwards! While for Noble...it is becoz of it's Vice Chairman who sold 1/3 of his holding that caused it's price shares to fall too but this will be a short-fall.
For the rest....eg, Alibaba, Henderson Inv, GCL-poly, Zijin Mining and Yuexiu Prop will be sold as soon as I can a nice profit for them! Then hold the proceed all in cash till the next opportunity come along to vest again.
Therefore I think...that the whole market here and HKex is looking tired and best to avoid them for awhile. For me....the best way is to slowly clear of my positions till only leaving behind my core stocks which is SMIC in HKex and Noble in here.
For SMIC....any price below HK$1 is good price esp now at 93 cts. Looking at it, it is very cheap now and for the past 3 weeks it has move up nicely and still at "1/3" it's IPO price. That for me...show that there is great potential of a huge push upwards! While for Noble...it is becoz of it's Vice Chairman who sold 1/3 of his holding that caused it's price shares to fall too but this will be a short-fall.
For the rest....eg, Alibaba, Henderson Inv, GCL-poly, Zijin Mining and Yuexiu Prop will be sold as soon as I can a nice profit for them! Then hold the proceed all in cash till the next opportunity come along to vest again.
Thursday, March 25, 2010
Funding for my CFD account
Yes...the market is still in the "cha cha" mode. Myself is so sleepy but just have to tahan, still have to hang on by a couple more hours and then go home to rest/sleep.
Frankly...I had a bad feeling that the stock market would "drop" after this reporting season is over meaning after the Qtr-end 31/3...the market would retraced some of it's recent gain.
By then I would have "clear of all my holding" and take most of my money off the game. And will hold them in cash till the next opportunity to vest.
I will only "keep" the core holding stocks and to get rid of the rest eg Yuexiu Prop and Zijin Mining, their candle stick pattern is not good.
Presently my core holding stocks included SMIC : HK0981, Noble : NOBG.SI. My plan is to vest 40 to 50% of my total funding in them....then the balance 50% will be in a couple more stocks as "trading buys" and to hold as margin or cash!
At present....my holding for the core stocks is at only 20%, therefore will slowly increase the holding as to plan ( 40 to 50% ).
Why....SMIC and Noble???? Well....I find great potential for both esp SMIC! It is cheap and has a good story-line to push the share price higher. Looking at it...now
it's share price is only at it's "1/3" original IPO level therefore still has "2/3" to run. Plus....new top management and factories also running max but still couldn't cope with demand. Then, Noble...this is also a good trending stock except that now it's Vice Chairman is in need to money, therefore sell out "1/3" his holding at
S$3.10 and that made the price to "break trough". That is why...I fast hand and leg
to vest 10 lots...and looking to add more positions to my holding.
Frankly...I had a bad feeling that the stock market would "drop" after this reporting season is over meaning after the Qtr-end 31/3...the market would retraced some of it's recent gain.
By then I would have "clear of all my holding" and take most of my money off the game. And will hold them in cash till the next opportunity to vest.
I will only "keep" the core holding stocks and to get rid of the rest eg Yuexiu Prop and Zijin Mining, their candle stick pattern is not good.
Presently my core holding stocks included SMIC : HK0981, Noble : NOBG.SI. My plan is to vest 40 to 50% of my total funding in them....then the balance 50% will be in a couple more stocks as "trading buys" and to hold as margin or cash!
At present....my holding for the core stocks is at only 20%, therefore will slowly increase the holding as to plan ( 40 to 50% ).
Why....SMIC and Noble???? Well....I find great potential for both esp SMIC! It is cheap and has a good story-line to push the share price higher. Looking at it...now
it's share price is only at it's "1/3" original IPO level therefore still has "2/3" to run. Plus....new top management and factories also running max but still couldn't cope with demand. Then, Noble...this is also a good trending stock except that now it's Vice Chairman is in need to money, therefore sell out "1/3" his holding at
S$3.10 and that made the price to "break trough". That is why...I fast hand and leg
to vest 10 lots...and looking to add more positions to my holding.
How you can cash in on one company taking the whole world by storm
McDonald's was a standout company during the recent recession. Slate magazine declared it "chief among the Great Recession's winners."
The title isn't without due. After all, it has grown earnings per share at a compounded annual growth rate of 22% over the past three years. And it was one of just a handful of companies whose stock posted positive returns in 2008 -- and one of even fewer with the guts to raise its dividend over this span.
But the boom days of McDonald's are over...
And buying McDonald's stock right now is a horrible move!
Why?
For starters, McDonald's has saturated the U.S. market. Although its golden arches litter our street corners, there's growing distaste for all things McDonald's in America.
In fact, BusinessWeek reports that the only reason McDonald's was able to grow its bottom line during the recession was because it raised prices domestically. This strategy can't -- and won't -- last. After all, McDonald's core customer base consists of lower-income households, many of whom recently lost their jobs and are still struggling just to get back on their feet.
McDonald's faces a Sisyphean task here in the U.S.
One Morgan Stanley analyst recently stated there's already "clear evidence of a gradual deceleration in sales, especially in the core U.S. and European markets."
The only hope McDonald's has for growing is internationally... But here's the catch...
Internationally, McDonald's is light years behind one rival fast-food company. This competitor is already beating McDonald's at its own game, especially in up-and-coming countries like China. In two-thirds of the Chinese cities this rival operates in, it faces no competition from McDonald's.
Here's why this matters: The fast-food industry in China looks like America's in the 1950s. Which is to say Chinese citizens are just beginning to be hooked by the concept.
And if this company becomes to China what McDonald's is to the U.S. (which looks very likely), its stock could quickly skyrocket past McDonald's... And here's why that matters: this rival has a market capitalization that's less than a quarter of McDonald's.
So, please read on to find out more about this global leader, to see its New York Stock Exchange ticker symbol, and to discover why it's a great fit for your portfolio right now.
China's largest quick-serve restaurant concept is none other than Yum Brands' [NYSE: YUM] own KFC.
Unlike Col. Sanders' famous recipe, the investment case for Yum isn't a closely guarded secret. Yum's family of global, industry-leading brands and a first-mover advantage in the world's next superpower have positioned it to become to China what McDonald's is (was?) to America.
Yum is the world's largest fast-food restaurateur by number of locations. It oversees 36,000 KFC, Taco Bell, Pizza Hut, Long John Silver's, A&W, and East Dawning restaurants spread across 110 countries.
Yum's size affords it a couple of competitive advantages. First, it gives the company serious bargaining power with its suppliers, which is a huge deal in a world of $0.89 tacos.
Additionally, Yum's tough-to-match distribution capabilities allow for lower costs and for it to consistently establish new outposts in China well ahead of the competition. This is why challengers are literally years behind Yum's progress in China, where its locations outnumber McDonald's roughly three to one.
Even though Yum has already established itself as a fast-food giant in China, the opportunity still ahead is huge. China currently has about 600 million urban dwellers -- that's twice the entire population of the U.S. Even more amazing -- Yum has 6 times the number of stores in the U.S. than in China.
It's no wonder Yum is going to invest $1 billion in its China operations in the next three years alone -- to open more than 1,500 new stores.
You might be wondering how long this growth will last, given the difference in cultures and the opinion Americans have of fast-food restaurants as an unhealthy option.
But the opinion of fast food in China is completely different. The Chinese see fast-food restaurants as places to celebrate with the whole family, and not just a place to stop for a speedy in-and-out meal.
What's more, a researcher at Euromonitor International states that Chinese customers see a trip to restaurants like KFC "as a healthier alternative."
Surprising? Yes. But it makes sense because the hygiene standards at a restaurant like KFC are far superior to the average street food you'd find in China. The cleanliness and freshness of the ingredients are almost a guarantee, which is not something that most restaurants in China can claim to be true.
Yum isn't your traditional restaurant play
Yum owns only about 20% of its restaurants -- most of the rest are operated by franchisees. Along with footing the bulk of restaurant-level costs, franchisees pay Yum a fixed rate on their stores' gross revenue. Here in the U.S., this rate averages around 5% to 6%. By the end of 2010, CEO and Chairman David Novak is looking to slash Yum's percentage of U.S. stores owned to less than 10%.
The exception to this strategy, interestingly enough, is China, where the stores are so profitable that Yum wants to own the profit outright.
But what's even more important for a potential investor like you, is that Yum has a long history of taking care of its shareholders. The company consistently churns out several hundred million dollars in free cash flow, fueling a 2.2% dividend yield and a solid reputation for share repurchases.
The title isn't without due. After all, it has grown earnings per share at a compounded annual growth rate of 22% over the past three years. And it was one of just a handful of companies whose stock posted positive returns in 2008 -- and one of even fewer with the guts to raise its dividend over this span.
But the boom days of McDonald's are over...
And buying McDonald's stock right now is a horrible move!
Why?
For starters, McDonald's has saturated the U.S. market. Although its golden arches litter our street corners, there's growing distaste for all things McDonald's in America.
In fact, BusinessWeek reports that the only reason McDonald's was able to grow its bottom line during the recession was because it raised prices domestically. This strategy can't -- and won't -- last. After all, McDonald's core customer base consists of lower-income households, many of whom recently lost their jobs and are still struggling just to get back on their feet.
McDonald's faces a Sisyphean task here in the U.S.
One Morgan Stanley analyst recently stated there's already "clear evidence of a gradual deceleration in sales, especially in the core U.S. and European markets."
The only hope McDonald's has for growing is internationally... But here's the catch...
Internationally, McDonald's is light years behind one rival fast-food company. This competitor is already beating McDonald's at its own game, especially in up-and-coming countries like China. In two-thirds of the Chinese cities this rival operates in, it faces no competition from McDonald's.
Here's why this matters: The fast-food industry in China looks like America's in the 1950s. Which is to say Chinese citizens are just beginning to be hooked by the concept.
And if this company becomes to China what McDonald's is to the U.S. (which looks very likely), its stock could quickly skyrocket past McDonald's... And here's why that matters: this rival has a market capitalization that's less than a quarter of McDonald's.
So, please read on to find out more about this global leader, to see its New York Stock Exchange ticker symbol, and to discover why it's a great fit for your portfolio right now.
China's largest quick-serve restaurant concept is none other than Yum Brands' [NYSE: YUM] own KFC.
Unlike Col. Sanders' famous recipe, the investment case for Yum isn't a closely guarded secret. Yum's family of global, industry-leading brands and a first-mover advantage in the world's next superpower have positioned it to become to China what McDonald's is (was?) to America.
Yum is the world's largest fast-food restaurateur by number of locations. It oversees 36,000 KFC, Taco Bell, Pizza Hut, Long John Silver's, A&W, and East Dawning restaurants spread across 110 countries.
Yum's size affords it a couple of competitive advantages. First, it gives the company serious bargaining power with its suppliers, which is a huge deal in a world of $0.89 tacos.
Additionally, Yum's tough-to-match distribution capabilities allow for lower costs and for it to consistently establish new outposts in China well ahead of the competition. This is why challengers are literally years behind Yum's progress in China, where its locations outnumber McDonald's roughly three to one.
Even though Yum has already established itself as a fast-food giant in China, the opportunity still ahead is huge. China currently has about 600 million urban dwellers -- that's twice the entire population of the U.S. Even more amazing -- Yum has 6 times the number of stores in the U.S. than in China.
It's no wonder Yum is going to invest $1 billion in its China operations in the next three years alone -- to open more than 1,500 new stores.
You might be wondering how long this growth will last, given the difference in cultures and the opinion Americans have of fast-food restaurants as an unhealthy option.
But the opinion of fast food in China is completely different. The Chinese see fast-food restaurants as places to celebrate with the whole family, and not just a place to stop for a speedy in-and-out meal.
What's more, a researcher at Euromonitor International states that Chinese customers see a trip to restaurants like KFC "as a healthier alternative."
Surprising? Yes. But it makes sense because the hygiene standards at a restaurant like KFC are far superior to the average street food you'd find in China. The cleanliness and freshness of the ingredients are almost a guarantee, which is not something that most restaurants in China can claim to be true.
Yum isn't your traditional restaurant play
Yum owns only about 20% of its restaurants -- most of the rest are operated by franchisees. Along with footing the bulk of restaurant-level costs, franchisees pay Yum a fixed rate on their stores' gross revenue. Here in the U.S., this rate averages around 5% to 6%. By the end of 2010, CEO and Chairman David Novak is looking to slash Yum's percentage of U.S. stores owned to less than 10%.
The exception to this strategy, interestingly enough, is China, where the stores are so profitable that Yum wants to own the profit outright.
But what's even more important for a potential investor like you, is that Yum has a long history of taking care of its shareholders. The company consistently churns out several hundred million dollars in free cash flow, fueling a 2.2% dividend yield and a solid reputation for share repurchases.
Thursday - up-date
Stocks - well, had a down day for Monday and my funding went down by 5K. Then also did do much for Tue and Wed...and with the market looking tired, had plan to do some spring-cleaning by selling my holding since the market was holding steady for the 2 days but I was kind of busy. Went to AIA and do some errands plus go watch movie on Wed. Just felt that the market is not going anywhere and no fun sitting and watching
it going thru the "cha-cha" dance steps. But things changed on Thursday....noticed the Global Bio-Chem still at the unchanged price and that the DOW also down, I made up my mind to clear this Global Bio-Chem ( candle stick chart also not good ). So sell....the whole lot of 120 lots. My ave cost was at HK$1.997 and I sold it at
HK$2.12 then I started to notice that there were movement for SMIC. Was thinking of adding position but in the end....decide also to sell. So....set it at HK$0.85 onwards....with 100 lots at every cts upward ( Meaning 85 cts @ 100 lots, 86 cts @ 100 lots....and so on till last 100 lots at 89 cts ). By then...it moved to 84/85 cts range, fast hand and leg....adjust the price upwards to 88 and 89. By mid-day....already kena and the price was at 90 cts. POWER....profit shown on the screen was HK$32.5K but then I kena "stop-out" for the 25 lots of Golden Agri...total loss at S$875. With the 2 HK stocks winners...more than off-set the loss of this Golden Agri one. Now funding...at 7/10 level.
What made me decided to sell? Well....with the US-China problem heating up and the tired market, I felt it's time to take some money off the holding and wait for opportunity. But....woke-up at 3pm to check on the market again. Shit....hand itchy!
Saw that this Yuexiu Prop : HK0123 was dropped to HK$1.99/2.00 so I bought at $2.00 when I saw it started to turn around....managed to buy 100 lots with a ave of HK$2.012 and it closed at HK$2.05 showing a realised profit of HK$3.8K. Also went in for 86 lots of Henderson Inv at HK$0.73 cts to make it 150 lots on hand plus 30 lots of Zijin Mining at HK$6.16 and 30 lots of GCL-Poly at HK$1.82
So....now in my holding : Zijin Mining ( 30 lots ), GCL-Poly ( 30 lots ), Henderson Inv ( 150 lots ), Alibaba ( 5 lots ), Yuexiu Prop ( 100 lots ).
HUAT AH!!!
4D - kena makan!
it going thru the "cha-cha" dance steps. But things changed on Thursday....noticed the Global Bio-Chem still at the unchanged price and that the DOW also down, I made up my mind to clear this Global Bio-Chem ( candle stick chart also not good ). So sell....the whole lot of 120 lots. My ave cost was at HK$1.997 and I sold it at
HK$2.12 then I started to notice that there were movement for SMIC. Was thinking of adding position but in the end....decide also to sell. So....set it at HK$0.85 onwards....with 100 lots at every cts upward ( Meaning 85 cts @ 100 lots, 86 cts @ 100 lots....and so on till last 100 lots at 89 cts ). By then...it moved to 84/85 cts range, fast hand and leg....adjust the price upwards to 88 and 89. By mid-day....already kena and the price was at 90 cts. POWER....profit shown on the screen was HK$32.5K but then I kena "stop-out" for the 25 lots of Golden Agri...total loss at S$875. With the 2 HK stocks winners...more than off-set the loss of this Golden Agri one. Now funding...at 7/10 level.
What made me decided to sell? Well....with the US-China problem heating up and the tired market, I felt it's time to take some money off the holding and wait for opportunity. But....woke-up at 3pm to check on the market again. Shit....hand itchy!
Saw that this Yuexiu Prop : HK0123 was dropped to HK$1.99/2.00 so I bought at $2.00 when I saw it started to turn around....managed to buy 100 lots with a ave of HK$2.012 and it closed at HK$2.05 showing a realised profit of HK$3.8K. Also went in for 86 lots of Henderson Inv at HK$0.73 cts to make it 150 lots on hand plus 30 lots of Zijin Mining at HK$6.16 and 30 lots of GCL-Poly at HK$1.82
So....now in my holding : Zijin Mining ( 30 lots ), GCL-Poly ( 30 lots ), Henderson Inv ( 150 lots ), Alibaba ( 5 lots ), Yuexiu Prop ( 100 lots ).
HUAT AH!!!
4D - kena makan!
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