Channel NewsAsia Business News

Wednesday, July 21, 2010

Macau Gaming Industry

Chanced upon a paper today on Macau's Gaming Industry. It's a little dated (1Q 2009), but it has quite a lot of information. Essential read for the investor who intends to invest in the gaming industry in Macau.

Saturday, July 3, 2010

Portfolio Summary June 2009

A down month for most portfolios, with growth concerns over China, Japan's slowing recovery, and a slower than expected recovery in the United States contributing to dropping indexes. Another point of note was Spain's credit rating which was put under review.

Well on a lighter note, world cup has been keeping me (and everyone else) up. So I wish to apologize for the lack of updates, as juggling world cup, work and sleep isn't a very fun thing to do.

Among my holdings the only news that was announced was for these following companies.

Novo Group - Results

Novo Group's results were released on the 21st of June. The results were disappointing with 4Q revenue decreasing over last year. Recall that the 4Q last year was from the period from Mar to Jun 09 where the global economy was just recovering, and economies in North East Asia being in their recovery phase.

Novo attributed the decrease to a slower growth rate in China and a rein in property development in china, decreasing the demand in steel. Steel has seen excess supply especially for those needed in construction of infrastructure. However, cold rolled steel for the manufacturing of appliances is still in demand. However, with credit reigned in in China, and excess supply in India seems to depress demand and pricing for steel.

I am looking to unload Novo in the near future, with steel pricing forecasted to not pick up before 2012.

The dividend payable for the year is at 0.5 cents per share.

YRC Worldwide - Asset Sale


YRC Worldwide has sold off its logisitics arm to Austin Ventures for $37 million. A quick calculation of the debt remaining after exhausting their loan capacity and repayment of trade payables and loans totalled about 93 million for 2010.

YRC Worldwide needs to generate a positive EBITDA, as well as positive cash flow to ensure liquidity does not dry up. The operational statistics seem to be bottoming out, and the next release of results will be crucial in determining it. The most important thing in the trucking industry is that while there is still excess capacity, the price wars are over and most trucking firms are aiming to reduce capacity.

China Star Entertainment - Bonus Issue


China Star Entertainment issued 1 bonus warrant for every 4 shares held. I made a mistake previously, as I commented that the warrants will be sold off. In fact, my broker has informed me that my warrants are held in my account already, and I had to incur a charge of SGD9.21. I am travelling to Macau and Hong Kong in August, and hopefully I'll have the chance to either meet the management, and visit their hotel in Macau.