Saturday, March 29, 2008

JP Morgan - One of the Investment Gems

Recent proposal buyout of Bear Stearns by JP Morgan at a "good value price" had shown that the management at JP Morgan at seeking good opportunity at adding to their shareholders values...

Despite also hit by subprime crisis, JP Morgan fullyear finanical result still post a very good result - profit of US$3.1 billions compared to most banking and finanical companies major losses due to huge write-down. Therefore this finanical company had shown to its shareholders that what it is capable of and having a excellent balance team of investment specialists and risk management specialists...

It's share price had climbed north despite the market turmoil... Time to spend some time analysis this gems for the longer term investment

Monday, March 10, 2008

China Investment Corp

China Investment Corp was set up by the Chinese government as a investment fund to scout to maximise its investment return . It was set up in 2007 with a war chest of US$200 billions under management

With the US$200 billions fund at hand, chairman Lou Jiwei had indicated that US$70 billions will be invested on oversea outside of China

It's first investment was paying US$3 billions for a 9% stake in Blackstone Group in May 2007. The investment had turn "sour" during the current subprime crisis when Blackstone Group share value had dropped almost 50% up to date.

Another high profile investment of US$3 billions acquiring 9.9% stake of Morgan Stanley in Dec 2007 was mentioned. This time round they are advised by New York based investment bank Lazard & Co to invest via convertable bond instead.

Other local investment include

* Acquire Central Huijin Investment that hold control stakes in China
three largest banks for US$67 billions

* Investment of HK$780 millions in Hong Kong IPO of China Railways Group

In turn China banks had turn to acquire stakes include British Barclays bank, South Africa Standard Bank Corp, Australia & New Zealand Banking Corp etc.

Currently China still holding about US$387 billions of US Treasury Bill and foreign-exchange reserves fund of US$1.53 trillions (as of dec 2007)

China Investment Corp is due to shift its office into the New Beijing Poly Plaza name translate into "Protecting the Profit". The challeng for now for CIC to deliver strong returns as impressive as its new headquarter office.

Wednesday, March 5, 2008

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