Sunday, October 4, 2009



Another “add to cart” Shopping Done

Yes people, in Feb 2009, it was reported that they bought to the tune about 10% copper. Then in March 2009 they became the number 5th globally to own more than 1000 ton of the precious metal – GOLD. (USA 8,133 tons, Germany 3,412 tons, France 2,508 tons, Italy 2,451 tons, China 1,104 tons.)

Hey people, it was never being audited; US claims of their 8,000 tons reserves. Well it was once reported that this was never being counter-check for the last 50 odd years. Out there experts in this field claims that it could be less than what US claims they have.





Who else or can I say who in addition? YES IT IS CHINA. No they are not stopping here. Recent on line news below reads that they now dish out US$ 850 million on Noble Group Ltd. (Noble Group Limited provides global supply chain management services for agricultural, industrial and energy products including coal and coke, clean fuels, fuel oil, petrochemicals and carbon credits. The Group is primarily involved in the agricultural, energy, metals, minerals and ores, and logistics industries.)

Noble to Sell $850 Million Shares to China Investment By Kyunghee Park and Andrea Tan

Sept. 22 (Bloomberg) -- Noble Group Ltd., the Hong Kong commodity trader, will sell $850 million worth of new and existing shares to China Investment Corp. to increase investments in agriculture.

China Investment will buy 438 million new shares and 135 million shares owned by Noble Chief Executive Officer Richard Elman for S$2.1137 ($1.49) each, Noble said in a statement dated yesterday to the Singapore stock exchange.

Noble Group more than doubled second-quarter profit as China boosted commodity imports to fuel $586 billion of stimulus spending needs. China Investment had $297.5 billion in assets and had 87.4 percent of its global portfolio invested in cash and cash equivalents at the end of last year, the fund reported last month. The fund has also been buying shares in the property and resources sectors in recent months.

“The newly issued shares will provide the Noble Group with additional capital to pursue strategic investments in key agricultural markets globally,” Noble said in the statement.

Noble shares last traded at S$2.30 before they were suspended on Sept. 15 . The stock has more than doubled this year, making it the fourth-best performer on the Straits Times Index. The company requested the shares to remain halted until Sept. 23.

Commodity demand in China “is back on track in a very big way,” CLSA Research Ltd. said last week.

Noble’s agricultural activities include farm production in Argentina, Uruguay, and Brazil and associated storage and port facilities, the company said in the statement. Noble’s other agricultural assets include crushing plants and sugar refineries.

To contact the reporters on this story: Kyunghee Park in Hong Kong atkpark3@bloomberg.net; Andrea Tan in Singapore at atan17@bloomberg.net

Well with a 1.2 to 1.3 billion and growing population, China at this rate, will be consuming lots of materials. At this rate it will be the making of the world’s No. 1 in terms of materials consumption.

The list as follows; Copper, Steel, Soybeans (maybe palm oil), Oil and coal. By 2010 China is expected to import some 4 million barrels a day. Last couple of months they were out shopping for oil platforms that pump about 100 to 200 million barrels a day. They are surely on a shopping spree. So what is holding us back? Why are we not on our 3yrs to 5 yrs investment picking? Load up on China and China related investment vehicles. If a nation like China is out investing, why are we not similarly doing so? China perceive the "buys" at real dip discounts after the down-turn. So let us go out and do some cherry-picking.

Till then people!

Tj

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