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nickyng
Supreme |
26-Oct-2010 11:33
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wow...$7.40 !?!? sure or not?? :P
DJ MARKET TALK: JPM Downgrades SGX To Neutral; Target S$7.40
Dow Jones Newswires | 26 Oct 2010 11:16am
0317 GMT [Dow Jones] STOCK CALL: JPMorgan downgrades Singapore Exchange (S68.SG) to Neutral from Overweight, cuts target to S$7.40 vs S$9.70; expects SGX to trade on "ebb and flow of regulatory stance on merger rather than on volumes traded." Says potential deal EPS accretive by about 18% if cash portion financed by 2% SGD debt; at 4% interest rate, deal only 2% accretive. "Despite accretive bottom-line on debt funded deal, we expect the stock to decline. A debt funded deal would add financial leverage to an already high operating leverage, leading to greater earnings fluctuations and hence derating." Adds upside risk to view is SGX walking away from deal, significant increase in volumes traded. Says developments to look for include regulatory stance, other exchanges' interest, reaction to fact it's corporate merger with dual listing, not full-blown exchange-level merger; this main factor in determining whether exchanges can gain revenue synergies, emerge as pre-eminent Asia-Pacific exchange. Shares down 2.3% at S$8.74. |
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nickyng
Supreme |
26-Oct-2010 10:41
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typical kangaroo nationalist and racist behaviour as expected....haha...wonder how Australia can b a leading financial centre on its own? ============================================== DJ 2ND UPDATE: Australian Lawmakers Signal Opposition To ASX Takeover Dow Jones Newswires | 26 Oct 2010 10:22am
(Adds comments from shadow treasurer, comments from PM, interview with independent Katter and comments from Greens leader) By Enda Curran and Rachel Pannett of DOW JONES NEWSWIRES CANBERRA (Dow Jones)--A mounting political backlash in Australia threatens to scuttle a proposed A$8.4 billion takeover of the country's stock market operator by Singapore Exchange Ltd. (S68.SG), with key lawmakers Tuesday saying it would give a foreign government with a poor record on freedom of speech and democratic issues too much control of the Sydney-based exchange. The concerns add a new dimension to the ambitious plan, amplifying the hurdles it faces if it is to win both regulatory and parliamentary approval. The ruling Labor party has slim control of power with the support of independents and the sole lower house Greens party lawmaker. A protracted debate about the foreign takeover of the ASX could prove damaging. Greens leader Bob Brown told Dow Jones Newswires he won't back legislative changes to allow the deal to go ahead. "(Singapore) is a state that tramples all over freedom of speech, democracy, the rights of oppositions, the ability for public discourse," he later told reporters. "The proposal here is that effectively the Australian Stock Exchange in Sydney be subjugated to Singapore and we'll see it wither on the vine," he added. Lawmakers in Canberra will have to approve the deal, which would require a change in Australian regulatory law. Under Australian corporations legislation, no single shareholder can own more than 15% of the ASX, and any proposal to lift that threshold must be tabled in parliament for 15 days. That gives members of parliament time to table a disallowance motion that could block the bid if passed. Australia's foreign investment laws also require approval from the Australian Treasurer Wayne Swan who will take advice from the Foreign Investment Review Board. The growing political opposition to the proposal means the onus is on Prime Minister Julia Gillard and her government to shepherd the takeover through any debate in parliament. Swan's office has so far avoided commenting directly on the details of the SGX proposal. Gillard said Tuesday the government considers all foreign investment proposals in the "national interest". "The Greens will not support any move to exempt the 15% shareholder cap on the Australian Stock Exchange to allow it to be taken over by the Singapore Exchange unless the benefits can be clearly proven," Brown told Dow Jones Newswires in emailed remarks. "We want to know what the impact will be not only on the Australian market and shareholders but also superannuation accounts and financial service and other workers," Brown said. Independent lawmaker Bob Katter said he would table a resolution in Parliament Tuesday to block the takeover and will oppose it on all grounds. "We will be moving a resolution opposing it," Katter told Dow Jones Newswires. "I would remain very confident all of the (independent and minor party lawmakers) will support it," he said. "I have a desire some things in my country are left owned by my country. I do not wish to live in a country of serfs working for foreign landlords," he said. The main opposition Liberal-National coalition also ramped up its opposition to the deal, questioning whether it would give a foreign government too much control of the Sydney-based exchange. The government must prove that the takeover is in Australia's national interest considering the large share of the company owned by the Asian state's central bank, Joe Hockey, shadow treasurer, said. "There will be concerns about our stock market being bought by a regional competitor, so it's essential the government explain how this is good for Australia," Hockey told Dow Jones Newswires in emailed comments. He said it is "premature" to say whether the conservative coalition will support or oppose the deal, however, noting that he will receive a briefing from the ASX later this week. Asked if the Greens would support Katter's motion to disallow the deal, Brown said: "We'll look at any motion, but our position is not to allow it until we get evidence that it is going to be in Australia's national interest." SGX has offered A$22 in cash and 3.743 SGX shares for each ASX share, valuing the company at A$48 (US$47.11) a share based on the closing share price before the offer was announced. ASX shares fell as much as 8.6% Tuesday, giving up much of Monday's strong gains on the bid, as concerns about political opposition intensified. JP Morgan warned Tuesday in a note to investors that the deal risks becoming "a heavily politicised issue." The chief executives of both Sydney-based ASX Ltd. and SGX said Monday they want to break down national boundaries and create an Asian-Pacific powerhouse with more than 2,700 listed companies from about 20 countries. The exchanges have already started their campaign to woo regulators, people familiar with the matter said. -By Rachel Pannett and Enda Curran, Dow Jones Newswires; 61-2-8272-4687; enda.curran@dowjones.com ;rachel.pannett@dowjones.com |
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ozone2002
Supreme |
26-Oct-2010 10:29
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8.7 support level.. JUST BUY... | ||||
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nickyng
Supreme |
26-Oct-2010 09:58
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nibbing buyings now...seems stable...suspect P.M trade will b another huge sell dn...as there's no light insight haha......SGX CEO must b comtemplating calling off this merger or he will hv tough time facing investors !! :P looks like do also die..dont do also he DIE! :P wat would u do? :P | ||||
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soloman
Master |
26-Oct-2010 09:45
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I HAVE NOTED YOUR EMOTIONAL SIDE TO STOCKS AS I PAY ATTENTION TO CERTAIN FORUMERS U HAVE QUITE A GOOD POSITIVE STABLE SIDE TO STOCKS - WHICH IS VERY GOOD ...... |
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nickyng
Supreme |
26-Oct-2010 09:42
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no offence taken as $$ in pocket :)
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soloman
Master |
26-Oct-2010 09:41
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i guess U are right on the 1K ++ money is money ..........................
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gavinl
Elite |
26-Oct-2010 09:39
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Ok lah,just few minutes earn 1k plus,not bad wah.Btw,i never short. Just kapo.:) | ||||
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soloman
Master |
26-Oct-2010 09:32
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5 lots is big short ??? No offence, U are obviously small player.................... |
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nickyng
Supreme |
26-Oct-2010 09:24
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i cant really express my happiness over my today's BIG $HORT$ on this burger today !! REALLY HUAT AHH$$$$ ! hope the rest of u are fruitful today too !!! :P anyway covered my at 8.71 x 5lot shorted at 8.93 !!
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cannotfind
Elite |
26-Oct-2010 09:18
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wow lucky I sold it yesterday... drop like hell | ||||
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rabbitfoot
Veteran |
26-Oct-2010 09:12
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Any good SGX call warrants to buy now ? | ||||
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soloman
Master |
26-Oct-2010 09:08
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from the look of things - today can fll by < 50% of yesterday ............................ | ||||
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soloman
Master |
26-Oct-2010 09:05
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guess U are right on the cash side - it is expensive ,,, just to kure the Aussies to sell .... |
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nickyng
Supreme |
26-Oct-2010 09:03
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not yet....it will still plunge...the cash portion for ASX is really a huge premium and the return DO NOT GUARANTEED any justification for that....price speak for itself 8.80 coming! hee....SHORTING SEASON II ! :P | ||||
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soloman
Master |
26-Oct-2010 08:53
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it can go either way ................ from 10+++ to 8+++ common sense already 10 % down
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alexchia01
Elite |
26-Oct-2010 00:12
Yells: "Catch The Stars And Ride With Them" |
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There is no high or low probability of winning with Market Making Trading. Just less transparent compare to DMA Trading, but cheaper.
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alexchia01
Elite |
26-Oct-2010 00:08
Yells: "Catch The Stars And Ride With Them" |
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CFD playing with the House (Market Maker) is older way of CFD Trading. If I'm not wrong, most CFD brokerage firms have already link directly to the Market (Direct Market Access, DMA). Your brokerage firm should tell you what kind of CDF trading they are providing, Market Maker or DMA. There are some brokerage firms that allow both kinds of trading. I know that Phillips CFD has both Market Maker Trading and DMA Trading. To be sure, you must check with your CFD brokerage firm.
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joshlai86
Veteran |
25-Oct-2010 23:42
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Thanks Gaecia, I'm more than happy to contribute. Issue of shares to buy another company, it's true that in exchange for dilution, you get another exchange on board. but the crux is how much more is SGX paying? Are they overpaying? Almost 40% premium to ASX last traded price, is ASX worth paying that much. Secondly, SGX shareholders used to own a company in net cash position. With this deal, SGX takes on huge debt, huge dilution to current shareholders, and who is to guarantee that SGX will pay out more dividends per share after the merger. With a huge debt now, some of the profits will go towards paying down this loan. Conclusion: the biggest winners are the ASX shareholders. They get cash and SGX shares. I agree that SGX shares might rebound if the deal falls through. And like you said no harm buying it for long term. Give the market more time to digest the news and for the price to stabilise. Many shortists out in the market now. After which then make your decision to buy or not.
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iknownothing
Senior |
25-Oct-2010 23:16
Yells: "INCOMING!!!!!" |
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technically,,the chart looks like falling sword...if you feels that fundamentally is good base of the take over of Aus Exchange...u can buy? u decide for urself but must prepare a cut loss price. Cheers!
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