Archive for the ‘MANUFACTURED GOODS’ Category

China’s upswing: Best investment vehicle to make money from.

Wednesday, December 10th, 2014

china_auto_vehicle-with lady image www.www-globalcommodities.com

While China is struggling with its gross domestic product (GDP) growth metrics, the country’s main stock market—the Shanghai Composite Index (SCI)—is easily outperforming the S&P 500 and NASDAQ.

China may be stalling, but the Chinese economy is still growing at a rate of more than seven percent—far better than the rest of the G8 countries. Now, of course, that’s if you believe the GDP reading that is put forth by the Chinese government; as with most data coming from China, it is up for debate whether it is real or fictitious.

But going forward on the premise that the GDP reading is accurate, you can understand that the potential for investment growth is significant.

The SCI is up 37% this year, easily outperforming the U.S. domestic stock markets. And now, with access to Chinese stocks traded on the two Chinese exchanges (the Shanghai and Shenzen)made possible from a hub in Hong Kong, the SCI has been edging higher.

Add in the fact that the country’s central bank, the People’s Bank of China, is continuing to pump easy money into the economic system, and you have the potential for more gains.

But to make the real money, you need to gain access to the “A” shares that trade in China, and not simply the American depository receipts (ADRs) that are listed on U.S. exchanges.

Investing in China’s “A” Shares

The iShares China Large-Cap (NYSEArca/ FXI) comprises the 25 largest companies in China but its performance has been substandard, moving up a mere three percent this year.

If you want access to the “A” shares listed on China’s exchanges, you can either buy them directly via an account in Hong Kong or via an exchange-traded fund (ETF) called the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (NYSEArca/ASHR). The ASHR ETF comprises the 300 “A” shares that are listed on the two Chinese stock exchanges. These companies are the bread and butter of the Chinese economy.

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You can look at the ASHR ETF as the equivalent of the S&P 500. The companies are diversified across the majority of sectors; hence, they provide ample diversification. The companies range from small-cap stocks to big-cap blue chips.

The largest sector is financials at 33.48%, followed by industrials at 13.87%, and technology at 9.61%. The holdings also have an attractive average price-to-earnings (P/E) multiple of 10.15 and a price-to-book ratio of 1.46, which is attractive compared to the S&P 500.

Here, you will find household names that you may not be familiar with you, but they are successful in China. Top companies include Ping An Insurance, China Merchants Bank, and Industrial and Commercial Bank of China.

by George Leong, B. Comm.

Henry Sapiecha

THE USA MANUFACTURING SECTOR DEPEND HEAVILY ON THE COUNTRY’S MINERAL WEALTH AS SHOWN IN THIS INFOGRAPHIC

Tuesday, May 14th, 2013

AMERICAN MANUFACTURING AND MINERAL SUPPLIES ARE JOINED AT THER HIP

Information on the bond between American manufacturing & minerals can be seen here referring to the info on this info graphic at this site > www.mineralsmakelife.org

Henry Sapiecha

BLUESCOPE STEEL TO REMAIN IN BUSINESS BUT AT THE EXPENSE OF 1,000 JOBS

Monday, August 22nd, 2011

BLUESCOPE DECIDES NOT TO CLOSE UP SHOP BUT AT THE EXPENSE OF 1,000 WORKERS JOBS

BlueScope Steel considered shutting down its entire manufacturing operations before opting for today’s rationalisation plan that will axe more than 1000 jobs.

The nations biggest steelmaker confirmed it would abandon its export business, in a move that will require its blast furnace capacity at Port Kembla to be halved, and a Hot Strip Mill at Western Port to be shut down.

Bluescope shares extended their recent losses today, losing 4.5 cents, or 5.7 per cent, to 74.5 cents. The stock has lost 67 per cent of its value this year compared with a 14 per cent fall for the ASX200 share index.

Bluescope chief exective Paul O’Malley said the changes would cost 800 of the 3100 jobs at Port Kembla, and 200 of the 1000 jobs at Western Port, with most of those workers to be gone by October.

But the job losses won’t end there with Mr O’Malley saying that significant numbers of contractors would also lose work.

”Contractors will be affected, and we can only make estimates on that … but in total it may be in the order of about 400 contractors who certainly won’t be working at the steelworks,” he said.

Mr O’Malley said the axed workers had an ”iron clad” guarantee of being paid out their entitlements, and would be treated with ”respect” throughout the process.

The changes come after a lengthy review which Mr O’Malley said considered all options, including a complete shutdown of all manufacturing, or a joint venture with foreign companies.

He said Bluescope had settled on this plan – which effectively reduces the company back to a domestic producer – because it would make the company viable in the current difficult economic circumstances, and very profitable if conditions improved.

”Moving to a complete shut is absolutely the wrong decision for the company, the shareholders and Australia, which is why we are going on the path we are going on,” he said.

The company reported an underlying loss of $118 million for the year to June, which ballooned to $1.054 billion once asset writedowns are included.

The poor result was caused by the high Australian dollar, a global glut in steel production, poor demand for construction in Australia and extremely high costs for steelmaking ingredients like iron ore and coal.

The company said it was also on the look out for acquisition opportunities in the iron ore sector – following rival OneSteel’s move today to increase its iron ore exporting business from six million tonnes per year to nearly 10 million tonnes per year.

The company stressed the changes had nothing to do with the Federal Government’s planned carbon tax, and Prime Minister Julia Gillard indicated Bluescope would be allowed to receive some of its planned support funding earlier than originally planned.

The Victorian and NSW Governments, in concert with the Federal Government, were also moving yesterday to mobilise support packages in the Western Port and Illawarra regions

Sourced & published by Henry Sapiecha

Henry Sapiecha

SANDALWOOD DEAL APPROVED BY GOVERNMENT

Thursday, July 29th, 2010

FIRB approves US deal for TFS

The West Australian June 7, 2010, 8:50 am

Private forestry group WA Sandalwood Plantations has signed bigger rival TFS Corporation as a significant investor in a landmark deal aimed at increasing its exposure to institutional investors.Danella Bevis / Danella Bevis ©

WA sandalwood grower TFS Corporation says the Foreign Investment Review Board has approved an investment management agreement between it and a US-based institutional investor.

Under the agreement, which TFS announced on May 26, TFS will manage a 180-hectare Indian sandalwood plantation to be planted this year.

Investment by the US-based institution over the life of the plantation, excluding performance bonuses to TFS, is anticipated to be around $20 million.

The investment could grow by another $100 million if an option is exercised to plant an extra 180 hectares per annum for the next five years to 2015.

The agreement is subject to and conditional upon the settlement of a related land acquisition agreement with TFS.

The land acquisition agreement was conditional upon the investor obtaining FIRB approval.

Under the deal, TFS is paid an upfront payment for the purchase of the land and establishment of the plantation, annual payments for plantation management, and a performance bonus upon a hurdle rate of return being achieved by the investor.
Sourced & published by Henry Sapiecha

THIS EVER SHRINKING WORLD MAKES IT EASIER TO ACCESS GOODS WORLDWIDE

Friday, February 26th, 2010

A WORLD HUNGRY FOR TRADE

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The commodity market activity  throughout the world has to keep moving between countries to ensure that all have a share of the global wealth and resources.

There are some who are not ‘pulling their weight whilst others are producing abundantly. These things are like that for different reasons.

Here we will bring them and others, together at a common market place where all can exchange goods and or services or sell for cash to the highest bidder or ready buyer.

MORE TO COME SO WATCH THIS SPACEeyes-22

Henry Sapiecha

LINE PERCENTAGE YELLOW BLACK

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