Tuesday, April 29, 2008
Bank on China Update
I hope you were able to purchase last weeks stock China Merchants Bank Co Ltd symbol: CIHHF. We were able to make a quick 11% gain in the past week! I will be paring back on my position but the stock will continue to do well and I don't plan to completely liquidate my entire position. Stay tuned for my next China play that I am working on right now.
Sunday, April 20, 2008
Bank on China
Chinese Bank Stock
China Merchants Bank Co Ltd symbol: CIHHF (OTC). This is the best run commercial bank in China. It operates through a network of approximately 400 branches in approximately 30 cities. China Merchants Bank was founded in 1987 and is headquartered in Shenzhen, the People’s Republic of China. For the first quarter of 2008 they reported an increase in net profit of 140%!! The company said the results were mainly driven by loan growth and higher interest spread, accelerating growth in noninterest income, lower credit costs and an effective income tax rate. The simple act of borrowing money is a fairly new idea in China and credit card usage is still in its early stages as most Chinese still pay for everything in cash. China Merchants Bank has grown its credit business rapidly through innovative marketing such as a Hello Kitty fan card. Growth in this area will continue at astonishing levels as China develops a middle class way of life for it huge population. Also late last year they got the okay to open a branch in New York which might just open the door for further US expansion.
Now may be a good time to pick up some shares as many investors are looking to start buying financial stocks and this stock has been cut in half like other banks for no reason other than being in the same sector. If you have an international trading account, such as E-Trade you could pick up the companies stocks under the number 3968 on the Hong Kong exchange. If not the only way to pick some up is through the OTC market, otherwise known as pink sheets, under the symbol CIHHF. If you have any questions or comments about this latest China stock pick send me an email. Full disclosure: I am currently trading 3968 H-Shares.
Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances.
China Merchants Bank Co Ltd symbol: CIHHF (OTC). This is the best run commercial bank in China. It operates through a network of approximately 400 branches in approximately 30 cities. China Merchants Bank was founded in 1987 and is headquartered in Shenzhen, the People’s Republic of China. For the first quarter of 2008 they reported an increase in net profit of 140%!! The company said the results were mainly driven by loan growth and higher interest spread, accelerating growth in noninterest income, lower credit costs and an effective income tax rate. The simple act of borrowing money is a fairly new idea in China and credit card usage is still in its early stages as most Chinese still pay for everything in cash. China Merchants Bank has grown its credit business rapidly through innovative marketing such as a Hello Kitty fan card. Growth in this area will continue at astonishing levels as China develops a middle class way of life for it huge population. Also late last year they got the okay to open a branch in New York which might just open the door for further US expansion.
Now may be a good time to pick up some shares as many investors are looking to start buying financial stocks and this stock has been cut in half like other banks for no reason other than being in the same sector. If you have an international trading account, such as E-Trade you could pick up the companies stocks under the number 3968 on the Hong Kong exchange. If not the only way to pick some up is through the OTC market, otherwise known as pink sheets, under the symbol CIHHF. If you have any questions or comments about this latest China stock pick send me an email. Full disclosure: I am currently trading 3968 H-Shares.
Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances.
Wednesday, April 16, 2008
Interesting Gas Facts
I recently received some interesting information regarding small ways to make the most out of every dollar you spend on gas. Let me know what you think.
I don't know what you guys are paying for gasoline.... but here in California we are also paying higher, up to $3.50 per gallon (AJSInvestEDIT: More like $4+ per gallon!) . But my line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money's worth for every gallon.. Here at the Kinder Morgan Pipeline where I work in San Jose , CA we deliver about 4 million gallons in a 24-hour period thru the pipeline One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.
Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role. A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.
When you're filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3)stages: low, middle, and high. In slow mode you should be pumping on low speed, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some other liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.
One of the most important tips is to fill up when your gas tank is HALF FULL or HALF EMPTY. The reason for this is, the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.
Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up--most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom. Hope this will help you get the most value for your money.
TIPS ON PUMPING GAS
I don't know what you guys are paying for gasoline.... but here in California we are also paying higher, up to $3.50 per gallon (AJSInvestEDIT: More like $4+ per gallon!) . But my line of work is in petroleum for about 31 years now, so here are some tricks to get more of your money's worth for every gallon.. Here at the Kinder Morgan Pipeline where I work in San Jose , CA we deliver about 4 million gallons in a 24-hour period thru the pipeline One day is diesel the next day is jet fuel, and gasoline, regular and premium grades. We have 34-storage tanks here with a total capacity of 16,800,000 gallons.
Only buy or fill up your car or truck in the early morning when the ground temperature is still cold. Remember that all service stations have their storage tanks buried below ground. The colder the ground the more dense the gasoline, when it gets warmer gasoline expands, so buying in the afternoon or in the evening....your gallon is not exactly a gallon. In the petroleum business, the specific gravity and the temperature of the gasoline, diesel and jet fuel, ethanol and other petroleum products plays an important role. A 1-degree rise in temperature is a big deal for this business. But the service stations do not have temperature compensation at the pumps.
When you're filling up do not squeeze the trigger of the nozzle to a fast mode. If you look you will see that the trigger has three (3)stages: low, middle, and high. In slow mode you should be pumping on low speed, thereby minimizing the vapors that are created while you are pumping. All hoses at the pump have a vapor return. If you are pumping on the fast rate, some other liquid that goes to your tank becomes vapor. Those vapors are being sucked up and back into the underground storage tank so you're getting less worth for your money.
One of the most important tips is to fill up when your gas tank is HALF FULL or HALF EMPTY. The reason for this is, the more gas you have in your tank the less air occupying its empty space. Gasoline evaporates faster than you can imagine. Gasoline storage tanks have an internal floating roof. This roof serves as zero clearance between the gas and the atmosphere, so it minimizes the evaporation. Unlike service stations, here where I work, every truck that we load is temperature compensated so that every gallon is actually the exact amount.
Another reminder, if there is a gasoline truck pumping into the storage tanks when you stop to buy gas, DO NOT fill up--most likely the gasoline is being stirred up as the gas is being delivered, and you might pick up some of the dirt that normally settles on the bottom. Hope this will help you get the most value for your money.
Sunday, April 13, 2008
Gold and Silver
By now you all know how bullish I have been about gold and silver and hopefully you have been able to at least start a position. Gold and silver have had an incredible run and now look poised to go on another big run.
While recently looking to purchase silver bullion it has come to my attention how severe the silver shortage is. The U.S. and Canadian mints are both having trouble buying enough silver to mint their bullion silver coins leading to a shortage and therefore an increase in prices for the coins. In case you didn't already know the U.S. no longer has a silver reserve and needs to purchase all of it's silver for production on the open market. I have started to buy silver again following the recent pullback from $20 down to the $16.80 level and so should you.
AP
Chavez Muses About Buying IMF Gold
Saturday April 12, 8:26 pm ET
Chavez Says Venezuela Could Afford to Buy Some of IMF's Gold Reserves
CARACAS, Venezuela (AP) -- Venezuelan President Hugo Chavez said Saturday that his government could afford to buy some of the International Monetary Fund's gold reserves as the Washington-based lender faces hard times.
Chavez raised that idea with a chuckle as the IMF, the lender of last resort for countries in trouble, considers trimming costs by selling off some of its gold reserves.
"Look at how the U.S. empire must be in unimpeded decline, that the International Monetary Fund ... is selling its crown jewels," Chavez said during a speech at a military parade.
"The International Monetary Fund is selling what gold it has left to be able to pay salaries," Chavez said. "We could give a loan to the Monetary Fund. ... We could buy some gold bars. ... I think they're selling gold cheap."
Chavez spoke as the IMF and World Bank were holding weekend discussions in Washington. One proposal on the agenda would trim 15 percent of the IMF's staff and sell about US$11 billion (euro7 billion) in the institutions' vast gold reserves.
A vociferous critic of the U.S. government, Chavez also has long opposed the policies of the IMF and the World Bank. He called the IMF "the financial arm of the empire."
The leftist leader spoke during a parade marking the anniversary of a failed 2002 coup that briefly drove him from power. He accuses U.S. President George W. Bush's government of being behind the coup, which U.S. officials deny.
Speaking to troops, Chavez said of the U.S.: "It's an empire in decline, but it's still very dangerous."
Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances.
Silver
While recently looking to purchase silver bullion it has come to my attention how severe the silver shortage is. The U.S. and Canadian mints are both having trouble buying enough silver to mint their bullion silver coins leading to a shortage and therefore an increase in prices for the coins. In case you didn't already know the U.S. no longer has a silver reserve and needs to purchase all of it's silver for production on the open market. I have started to buy silver again following the recent pullback from $20 down to the $16.80 level and so should you.
Gold
Gold is being pumped into the market by the IMF and other financial institutions as they try to replenish their cash reserves which has ever so slightly pressured the price lower. The scary part about this is the fact that it is being absorbed by the market so quickly and the price of gold has recovered quickly. Once this "faucet" of gold is turned off the price of gold is going to skyrocket. Also if you believe as I do that the fed will continue to sacrifice the dollar to try and save the economy this will also create a flight to gold.
What to Buy?
I recommend buying ticker symbols: SLV for silver exposure and GLD for gold exposure. You should also consider visiting your local or online coin dealer to begin purchasing actual gold or silver bullion. Full Disclosure: I currently own SLV and GLD.
Interesting Comments
Here is an interesting story I found on Yahoo regarding the IMF sale of gold:
AP
Chavez Muses About Buying IMF Gold
Saturday April 12, 8:26 pm ET
Chavez Says Venezuela Could Afford to Buy Some of IMF's Gold Reserves
CARACAS, Venezuela (AP) -- Venezuelan President Hugo Chavez said Saturday that his government could afford to buy some of the International Monetary Fund's gold reserves as the Washington-based lender faces hard times.
Chavez raised that idea with a chuckle as the IMF, the lender of last resort for countries in trouble, considers trimming costs by selling off some of its gold reserves.
"Look at how the U.S. empire must be in unimpeded decline, that the International Monetary Fund ... is selling its crown jewels," Chavez said during a speech at a military parade.
"The International Monetary Fund is selling what gold it has left to be able to pay salaries," Chavez said. "We could give a loan to the Monetary Fund. ... We could buy some gold bars. ... I think they're selling gold cheap."
Chavez spoke as the IMF and World Bank were holding weekend discussions in Washington. One proposal on the agenda would trim 15 percent of the IMF's staff and sell about US$11 billion (euro7 billion) in the institutions' vast gold reserves.
A vociferous critic of the U.S. government, Chavez also has long opposed the policies of the IMF and the World Bank. He called the IMF "the financial arm of the empire."
The leftist leader spoke during a parade marking the anniversary of a failed 2002 coup that briefly drove him from power. He accuses U.S. President George W. Bush's government of being behind the coup, which U.S. officials deny.
Speaking to troops, Chavez said of the U.S.: "It's an empire in decline, but it's still very dangerous."
Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances.
Monday, April 7, 2008
China Update and Recap
Recap
Update