Posted by Jeflin on September 8, 2008
Before you invest heavily in stocks, you should really pore over the cash flow statement. I regard it as the bible, more important than the balance sheet or profit/loss statement.
Without Free Cash Flow, a company is deprived of many opportunities that enhance shareholder value. Read the full article here.
Posted in Business, Stocks | Tagged: balance sheet, Business, capital spending, depreciation, earnings, free cash flow, net income, profits, stock market, Stocks | Leave a Comment »
Posted by Jeflin on August 22, 2008
Interesting news that Lehman Brothers may be saved from its insolvent fate by Korea Development Bank. Rumors have emerged that a very big investment bank on Wall Street may fail in the near future and Lehman Brothers is a firm candidate.
Lehman Brothers and Wall Street can rejoice but is it a wise decision by Korea Development Bank? The state-run lender has performed poorly in overseas investment and is now lined up for privatization. Net profit halving to $24.6 million in the first half year-on-year.
The setback stands out against other local commercial banks, such as Shinhan and the Korea Exchange Bank (KEB), which enjoyed excellent profit growth abroad. Their lackluster performance is mainly due to high exposure to subprime mortgages and poor risk management.
Korea Development Bank has as good a chance as Lehman Brothers of going under by taking up more mortgage risks. Will they break with tradition and score a home run this time round? Don’t bet on it.
Korea Development Bank’s Chief Executive Officer Min Euoo Sung declined to comment on a Reuters report that the state-run lender is “open to” a potential acquisition of Lehman Brothers Holdings Inc.
Reuters, citing an unidentified Korea Development Bank spokesman, said Korea Development is studying a number of options, including buying Lehman.
The government is aiming to privatize the bank by 2012, and acquisitions of domestic and foreign companies may help the company expand ahead of that target.
Lehman spokesman Mark Lane declined to comment when contacted today by Bloomberg. Lehman, based in New York, is the fourth- largest U.S. securities firm.
Source: Bloomberg
Posted in Banking, Stocks | Tagged: insolvent, Korea Development Bank, Lehman Brothers, privatization, profits, risk management, state-run bank | Leave a Comment »
Posted by Jeflin on August 5, 2008
The Straits Time Index was down 15.57 points to close at 2860.51 Tuesday, a relatively muted response (fortunately) amid regional markets turbulence.
The stock market desperately needs a stimulus and what better than to see Dow Jones rallying by 331 points, reversing 3 consecutive loss sessions.
I expect stocks on the SGX to rally today and UOB gave me a pleasant surprise. Read the full article here.
Posted in Alternative Energy, Banking, Business, Economy, Inflation, Oil, Stock Indices, Stocks | Tagged: Banking, Business, Economy, Federal Reserve, financial firms, Inflation, investments, investors, Oil, profits, Stocks, UOB | 1 Comment »
Posted by Jeflin on July 17, 2008
How is Google faring in this ailing US economy? Google’s earnings growth for the second quarter was a disappointment for investors, raising fears that the online search leader has finally stumbled.
Read the full article at http://jeflin.net
Posted in Business, Economy, Stocks | Tagged: Business, DoubleClick, earnings, Eric Schmidt, Google, Microsoft, profits, revenues, stock market, Stocks, Viacom, Yahoo | Leave a Comment »
Posted by Jeflin on July 16, 2008
Previously, I mentioned about the mix of capitalization in a corporation. This brings us to the important question of how bonds affects stockholders.
In a nutshell, bonds and debentures (unsecured bonds) are debts or rather, contractual obligations.
Read the full article at http://jeflin.net
Posted in Oil, Stocks, bonds | Tagged: bonds, capitalization ratios, debentures, dividends, interest rates, mix of capitalization, profits, stockholders, Stocks | Leave a Comment »
