Yesterday was activated by the force sell due to T+3, which those did not pay at T+3 was being sell off at 4th day, which trigger the sudden drop in share price after 11am. This sudden fall attract the shortist, which force the price lower, have pickup the good one Capitaland, As last year 1 Aug 06, price is $4.18, yesterday 1Aug07 price is only $7.35, but the result indicate a 5 times profit which means that the price if with the same PE ratio as last year should reach $20++, I am not expecting much but target at $15, which is a 2times earning. Ha!ha!
Stock valuations are reasonable For one, stocks aren't too pricey and sell offs are likely to bring in buyers looking for a bargain.
"A
lot of stocks are looking reasonably cheap," said Peter Dixon,
strategist at Commerzbank in London. "On the basis of valuations,
you've got to continue to favor equities," he said.
In the U.S.,
the S&P 500 index is valued at about 15 times 2008 earnings, which
makes stocks attractive investments, according to Stephen Leeb,
president of New York-based Leeb Capital Management.
Deals not doomed
Private equity buyouts have helped support the stock rally in the U.S.
and Europe as investors have bet that nearly any public company could
be taken over.
The outlook for these deals is looking murky as
buyout firms face hurdles securing financing, but a slowdown in
leveraged buyouts isn't going to have a substantial impact on stocks.
"The
exit of private equity is not going to be what caps this market. There
are lots of corporate buyers out there willing to step up to the plate
and fill the gaps left by private equity," Leeb said.
Economy still fundamentally strong
Turmoil in the credit markets is being caused by a repricing of risk,
and not from problems stemming from the broader economy, many say.
"In
our opinion this is a financial market event rather than a real economy
event," said John Ip, senior economist for Morley Fund Management in
London.
As a result, highly leveraged companies and financial
firms are likely to feel the pain. But so far, it doesn't look like the
upheaval is affecting the ability of companies on sound footing to get
credit, he said.
Treasury Secretary Hank Paulson said Wednesday
that the fallout from subprime problems was contained and that the
global economy remains strong, Reuters reported.
In a sign of the
strength of the worldwide economy, the International Monetary Fund last
week revised its global growth forecast for 2007 and 2008 to 5.2
percent, up from a previous forecast of 4.9 percent.
Plenty of cash out there Despite
problems roiling the debt markets, liquidity - or the amount of money
available for investing - remains plentiful worldwide.
China and
Russia, for example, have accumulated massive reserves. The global
economic boom has also helped drive corporate profits, and many
companies are sitting on loads of cash.
"Liquidity is quite
abundant and it will cushion the world's economy and the financial
markets against the current turmoil," Tony Crescenzi, chief bond market
strategist at Miller Tabak and Co. in New York, wrote in a note this
weekThe tumult in the credit market may persist for some time,
but it's likely that "credit formation will return to levels sufficient
to power a continuation of the global economic expansion," he wrote.
The fluctuations are strong...ups and downs...very unstable...such a market should well be avoided...if you do not want to buy at a high (which u thought it was the lowest of low already)...and then sell lower than the low......
Here's the key updates from Yahoo! Finance of the DOW:
This is going to be real bad until proven other wise. Many are going to be wounded. All are trying squeeze out of the nearest exit door. Reckon will be another hard hitting day for Dow. STI may contiune to fall further tomorrow..
Wednesday August 1, 7:09 am ET By Madlen Read, AP Business Writer
Stocks Poised for Lower Open on Wall Street Ahead of Mortgage, Home Sales Data
NEW YORK (AP) -- Stock futures fell sharply Wednesday, as Wall Street prepared to embark on another steep decline due to ongoing worries about U.S. home loans.
NEW YORK (MarketWatch) -- Investors in American Home Mortgage Investment Corp. may not be the only casualties as that lender teeters on the brink of liquidation.
Wall Street banks may also be on the hook for billions of dollars in bad loans.
Barclays, UBS, Bear Stearns Cos. and Bank of America Corp. are among the banks that provided a combined $9.7 billion in loans to back American Home's (AHM :
AHM1.04, -9.43, -90.1%) mortgage underwriting, according to the company's quarterly filing with the Securities and Exchange Commission.
American home said Tuesday it has missed margin calls from its lenders and has hired advisers to consider strategic options including the liquidation of its assets. Its shares plunged $9.43 to close at $1.04. See full story.
Among the loans American Home disclosed: a $2 billion pre-purchase facility with the Real Estate Securities unit of UBS (UBS :
Representatives from UBS, Bank of America and Barclays did not immediately return calls seeking comment. A spokeswoman for Bear Stearns declined comment. A spokesman for J.P. Morgan declined comment.
Officials from ABN Amro and Calyon Securities could not be reached.
NEW YORK (CNNMoney.com) -- Early gains on Wall Street all but evaporated in Tuesday afternoon trading, as investors eyed new credit market developments and the latest corporate earnings.Oil prices, which neared record highs, also pressured stocks.
NEW YORK (CNNMoney.com) -- Wall Street investors exercised some caution after a sharply higher start Tuesday, amid upbeat General Motors earnings, a flurry of economic readings, and residual credit market concerns.
The Dow Jones industrial average (up 61.86 to 13,420.17, Charts) climbed 46 points, or about 0.4 percent, 2 hours into the session, after climbing by as much as 138 points after the market open.
NEW YORK (Reuters) - Stocks rose in choppy trade on Monday after Wall
Street's worst week in nearly five years as optimism about the earnings
outlook offset concerns about the deteriorating credit market.
"There are a lot of jitters about credit out there," said Brian
Gendreau, investment strategist at ING Investment Management in New
York.
"But earnings are coming in better than expected, we have moderate
growth, moderate inflation and global growth is strong. I think stocks
will be higher at the end of the year."
US STOCKS-Earnings optimism helps fuel rebound
NEW YORK, July 30 (Reuters) - U.S. stocks rose on Monday,
as optimism about earnings and M&A activity in the industrial
sector countered the worries about worsening credit conditions
that led to a global equity sell-off last week.
Expectations for quarterly earnings growth by Standard &
Poor's 500 companies were raised to 6.8 percent compared with
the year-ago period from 6.0 percent one week earlier,
according to Reuters Estimates.
"The market is getting a bounce back. It was definitely
oversold. It is also good to get some greed in there because
we've had a lot of fear," said Manny Weintraub, managing
director at Integre Advisors in New York.
"But I don't think we have the conditions for a permanent
floor and the resumption of a bull market here."
Rising delinquencies and defaults in home loans and falling
home prices contributed to stocks' recent losses.
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