PROPOSED ACQUISITION OF 60% EQUITY STAKE IN CLS HOLDINGS PTE. LTD.
We refer to the announcement of the Company dated 1 April 2008 on the subject matter above and the subsequent discussions on the extension of the non-binding memorandum of understanding (the “MOU”) with Chua Lai Seng (the “Vendor”). The Board of Directors (the “Board”) wishes to announce that after considering the merits of the request from the Vendor and the interests of the Company, the Board had decided to allow the MOU to lapse and not to extend the exclusivity period which ends on 31 March 2008.
BY ORDER OF THE BOARD
Lee Quang Loong
Company Secretary
Date: 22 April 2008
Thursday, April 24, 2008
CSC: WINS ANOTHER CONTRACT IN THE ENERGY RELATED INDUSTRY $47m
CSC WINS ANOTHER CONTRACT IN THE ENERGY RELATED INDUSTRY
S$47m Contract is the Group’s Largest Driven Pre-Stressed Concrete Pile Project
Marking yet another milestone for the Group, a subsidiary of CSC Holdings Limited (“CSC”), has won a S$47 million foundation contract worth from Norway’s Renewable Energy Corporation ASA (“REC”). For CSC, this is the largest driven pre-stressed concrete pile project secured. The contract will be for a period of nine months. REC will be investing up to S$6.3 billion over the next five years to build the world’s largest fully integrated solar manufacturing complex here. When fully developed, the complex will be capable of producing up to 1.5GW of solar wafers, cells and modules annually, or about 75% of the world’s output in 2006.
This latest contract secured is a resounding vote of confidence to our ability and commitment to construct and deliver results for our customers within a tight turnaround time. CSC is honoured
to be given a chance to work with REC on such an iconic development.
In addition to this contract win, the Group recently also secured other foundation engineering
and geotechnical investigation and instrumentation jobs valued at about S$24 million collectively. These include works for a Downtown Line MRT station, public housing development in Bukit Merah and works for an electrical sub-station building at Choa Chu Kang.
With these recently secured contracts amounting to a total of S$71 million, the Group’s order book now stands at approximately S$400 million. Most of the projects will be completed within
the next 12 months.
BY ORDER OF THE BOARD
Lee Quang Loong
Company Secretary
S$47m Contract is the Group’s Largest Driven Pre-Stressed Concrete Pile Project
Marking yet another milestone for the Group, a subsidiary of CSC Holdings Limited (“CSC”), has won a S$47 million foundation contract worth from Norway’s Renewable Energy Corporation ASA (“REC”). For CSC, this is the largest driven pre-stressed concrete pile project secured. The contract will be for a period of nine months. REC will be investing up to S$6.3 billion over the next five years to build the world’s largest fully integrated solar manufacturing complex here. When fully developed, the complex will be capable of producing up to 1.5GW of solar wafers, cells and modules annually, or about 75% of the world’s output in 2006.
This latest contract secured is a resounding vote of confidence to our ability and commitment to construct and deliver results for our customers within a tight turnaround time. CSC is honoured
to be given a chance to work with REC on such an iconic development.
In addition to this contract win, the Group recently also secured other foundation engineering
and geotechnical investigation and instrumentation jobs valued at about S$24 million collectively. These include works for a Downtown Line MRT station, public housing development in Bukit Merah and works for an electrical sub-station building at Choa Chu Kang.
With these recently secured contracts amounting to a total of S$71 million, the Group’s order book now stands at approximately S$400 million. Most of the projects will be completed within
the next 12 months.
BY ORDER OF THE BOARD
Lee Quang Loong
Company Secretary
Saturday, April 12, 2008
BT: Economy surprises with robust 7.2% Q1 growth
Business Times - 11 Apr 2008
Economy surprises with robust 7.2% Q1 growth
But MAS says growth is likely to ease in next few quarters as global outlook dims
By ANNA TEO
(SINGAPORE) Inflationary concerns outweigh downside growth risks - for now anyway - as the economy rebounded strongly in the first quarter. But GDP growth is expected to ease in the months ahead.
The 7.2 per cent flash estimate of Q1 growth - against sub-6 per cent consensus forecasts, and up from the preceding Q4's 5.4 per cent pace - mostly surprised on the upside. In annualised, adjusted terms, the economy - far from slipping into a technical recession, after a Q4 contraction - grew almost 17 per cent in Q1, according to the advance figures based only on January and February data.
Notably, the manufacturing sector roared back after the previous quarter's flat performance. According to the Ministry of Trade and Industry, the sector's 13.2 per cent recovery was due to a surge in the biomedical cluster and a better showing by mainly the electronics and chemicals industries.
Growth was fairly broad-based across the economy, with the services sector maintaining pace at 7.6 per cent, led by the financial services. Construction growth slowed, but to a still robust 14.6 per cent.
The Monetary Authority of Singapore - which unexpectedly tightened monetary policy yesterday - had rather a lot more to say about the growth outlook.
Singapore's economic growth is likely to ease in the next few quarters, says the central bank in its monetary policy statement.
Global growth prospects have worsened significantly of late, but regional resilience should continue to support Singapore's growth, MAS says.
And while maintaining the official forecast of 4-6 per cent growth for 2008, it adds: 'A more severe global downturn cannot be ruled out if there is a further escalation of the financial crisis in the US. If this occurs, Singapore's growth will be adversely affected.'
Related link:
Click here for MTI's advance Q108 GDP estimates
Meanwhile, global inflationary pressures remain high, and Singapore's consumer price inflation is expected to remain elevated in the first half of 2008, MAS says.
It now projects Singapore's 2008 inflation rate to come in at the upper half of the 4.5-5.5 per cent forecast range.
'Against this backdrop of continuing external and domestic cost pressures, an upward shift of the policy band at this point will help to moderate inflation going forward,' it says.
While surprised by the Q1 GDP figures, economists are a little divided about how much the economy will be hit by the US recession that will likely show its hand in Asia later in the year.
Standard Chartered Bank's forecasts for Singapore see GDP growth slowing sharply to just 2.8 per cent by Q4, averaging 4.5 per cent for the year.
On the other hand, HSBC economist Robert Prior-Wandesforde maintains that 'domestic fundamentals remain highly supportive of growth' and is sticking to his forecast of 6 per cent growth for 2008. He also expects no reversal of the monetary tightening at the next review in October - and sees the inflation rate easing to about 3 per cent in Q1 2009.
For at least one economist, though, the Q1 7.2 per cent GDP growth is simply 'not high enough'.
Given the robust flash estimates for manufacturing, services and construction, the numbers just do not 'add up', says Daiwa Institute of Research's P K Basu, who had forecast 8.4 per cent GDP growth for the quarter.
Could there have been a 'computation error' somewhere, he wondered. Asked about this, an MTI officer ran through the data, and found nothing amiss.
The full details of Q1 economic performance, including March figures, will be released next month.
Economy surprises with robust 7.2% Q1 growth
But MAS says growth is likely to ease in next few quarters as global outlook dims
By ANNA TEO
(SINGAPORE) Inflationary concerns outweigh downside growth risks - for now anyway - as the economy rebounded strongly in the first quarter. But GDP growth is expected to ease in the months ahead.
The 7.2 per cent flash estimate of Q1 growth - against sub-6 per cent consensus forecasts, and up from the preceding Q4's 5.4 per cent pace - mostly surprised on the upside. In annualised, adjusted terms, the economy - far from slipping into a technical recession, after a Q4 contraction - grew almost 17 per cent in Q1, according to the advance figures based only on January and February data.
Notably, the manufacturing sector roared back after the previous quarter's flat performance. According to the Ministry of Trade and Industry, the sector's 13.2 per cent recovery was due to a surge in the biomedical cluster and a better showing by mainly the electronics and chemicals industries.
Growth was fairly broad-based across the economy, with the services sector maintaining pace at 7.6 per cent, led by the financial services. Construction growth slowed, but to a still robust 14.6 per cent.
The Monetary Authority of Singapore - which unexpectedly tightened monetary policy yesterday - had rather a lot more to say about the growth outlook.
Singapore's economic growth is likely to ease in the next few quarters, says the central bank in its monetary policy statement.
Global growth prospects have worsened significantly of late, but regional resilience should continue to support Singapore's growth, MAS says.
And while maintaining the official forecast of 4-6 per cent growth for 2008, it adds: 'A more severe global downturn cannot be ruled out if there is a further escalation of the financial crisis in the US. If this occurs, Singapore's growth will be adversely affected.'
Related link:
Click here for MTI's advance Q108 GDP estimates
Meanwhile, global inflationary pressures remain high, and Singapore's consumer price inflation is expected to remain elevated in the first half of 2008, MAS says.
It now projects Singapore's 2008 inflation rate to come in at the upper half of the 4.5-5.5 per cent forecast range.
'Against this backdrop of continuing external and domestic cost pressures, an upward shift of the policy band at this point will help to moderate inflation going forward,' it says.
While surprised by the Q1 GDP figures, economists are a little divided about how much the economy will be hit by the US recession that will likely show its hand in Asia later in the year.
Standard Chartered Bank's forecasts for Singapore see GDP growth slowing sharply to just 2.8 per cent by Q4, averaging 4.5 per cent for the year.
On the other hand, HSBC economist Robert Prior-Wandesforde maintains that 'domestic fundamentals remain highly supportive of growth' and is sticking to his forecast of 6 per cent growth for 2008. He also expects no reversal of the monetary tightening at the next review in October - and sees the inflation rate easing to about 3 per cent in Q1 2009.
For at least one economist, though, the Q1 7.2 per cent GDP growth is simply 'not high enough'.
Given the robust flash estimates for manufacturing, services and construction, the numbers just do not 'add up', says Daiwa Institute of Research's P K Basu, who had forecast 8.4 per cent GDP growth for the quarter.
Could there have been a 'computation error' somewhere, he wondered. Asked about this, an MTI officer ran through the data, and found nothing amiss.
The full details of Q1 economic performance, including March figures, will be released next month.
Friday, April 11, 2008
曹仁超—投資者日記: 越南隨時變世界工廠
11/04/2008
越南人口八千四百萬，較成個廣東省仲多，70％都係戰後嬰兒（越戰响1975年結束）。全國人口平均年齡二十四點五歲，公民識字率94％，越南嗰邊英文程度好高。家吓一個越南工人月薪响50至80美元，只及珠三角一帶嘅人工一半。自從越南加入WTO後，一排排灰白色廠房喺城市郊區建起嚟，成為中國珠三角工業最佳嘅轉移點。台灣商人更早喺1998年已响越南開始投資，例如造鞋、家具及成衣，依家估計已達四千家左右；今天台商對越南嘅興趣大過中國大陸。除咗工資夠平外，仲有豐富嘅天然資源及國內市場。今天胡志明市（往日西貢）到處都係建築工地，情況好似九十年代嘅珠三角。越南起步大約遲中國十多年，1986 年先實行革新開放政策（中國喺1978年宣布改革開放），中國1992年已宣布建立有社會主義特色嘅市場經濟體制，越南喺2001年先提出以社會主義為方向嘅市場經濟。2003年高盛證券首次發布以越南為核心嘅研究報告，佢地估計不出十年，越南將超越印尼同菲律賓，成為東盟十國中經濟實力最強勁嘅經濟體。
2007年越南GDP上升8.5％响全球中僅次於中國。自1986年宣布革新開放後，越南國內人口每日生活費唔足1美元嘅人口比例由51％降至2007 年8％，速度較中國快。過去二年越南股市總值由10億美元升至146億美元，但去年8月起又大幅回落，外國投資者以中國人為主。越南房價已直逼東京同紐約，例如胡志明市商業中心濱城市場商舖，每平方米賣17.3萬美元；胡志明市城郊房價，每平方米賣2000美元。越南基建至今仲好落後，電力缺口達十億度一年，道路仍以泥路為主，高速公路只得一條。
依家投資越南應以建廠為主，不宜涉足股票及房地產；相信越南可成為另一個世界工廠。
越南人口八千四百萬，較成個廣東省仲多，70％都係戰後嬰兒（越戰响1975年結束）。全國人口平均年齡二十四點五歲，公民識字率94％，越南嗰邊英文程度好高。家吓一個越南工人月薪响50至80美元，只及珠三角一帶嘅人工一半。自從越南加入WTO後，一排排灰白色廠房喺城市郊區建起嚟，成為中國珠三角工業最佳嘅轉移點。台灣商人更早喺1998年已响越南開始投資，例如造鞋、家具及成衣，依家估計已達四千家左右；今天台商對越南嘅興趣大過中國大陸。除咗工資夠平外，仲有豐富嘅天然資源及國內市場。今天胡志明市（往日西貢）到處都係建築工地，情況好似九十年代嘅珠三角。越南起步大約遲中國十多年，1986 年先實行革新開放政策（中國喺1978年宣布改革開放），中國1992年已宣布建立有社會主義特色嘅市場經濟體制，越南喺2001年先提出以社會主義為方向嘅市場經濟。2003年高盛證券首次發布以越南為核心嘅研究報告，佢地估計不出十年，越南將超越印尼同菲律賓，成為東盟十國中經濟實力最強勁嘅經濟體。
2007年越南GDP上升8.5％响全球中僅次於中國。自1986年宣布革新開放後，越南國內人口每日生活費唔足1美元嘅人口比例由51％降至2007 年8％，速度較中國快。過去二年越南股市總值由10億美元升至146億美元，但去年8月起又大幅回落，外國投資者以中國人為主。越南房價已直逼東京同紐約，例如胡志明市商業中心濱城市場商舖，每平方米賣17.3萬美元；胡志明市城郊房價，每平方米賣2000美元。越南基建至今仲好落後，電力缺口達十億度一年，道路仍以泥路為主，高速公路只得一條。
依家投資越南應以建廠為主，不宜涉足股票及房地產；相信越南可成為另一個世界工廠。
Thursday, April 10, 2008
BT: Worst from credit crisis yet to come: George Soros
Business Times - 10 Apr 2008
Worst from credit crisis yet to come: George Soros
SHANGHAI - The credit crisis is far from over, billionaire financier George Soros warned on Thursday, urging regulators to move faster to contain damage from the collapse of the housing finance markets.
'I think the situation is more serious than the authorities admit or recognise,' Mr Soros told journalists in a conference call.
Measures taken so far to slash interest rates and stimulate the economy were 'necessary but not sufficient,' he said.
'Because of that, I think the situation is going to get worse before it gets better.'
Mr Soros is promoting a new book, 'The New Paradigm for Financial Markets: The Credit Crisis and What It Means.'
He has urged regulators to move more aggressively to improve market oversight to curb risks from excessive reliance on debt for financial speculation.
He said that he agreed with the International Monetary Fund's estimate of more than US$1 trillion in losses linked to the collapse of mortgage-backed securities.
Losses disclosed by financial institutions so far are related only to the decline in value of those financial instruments, Mr Soros said.
'They do not reflect in any way a possible decline in the value of the loans held by the banks,' he said. 'We have not yet seen the full effect of the possible recession.'
Mr Soros pointed to the potential for massive losses from complex investments linked to the US sub-prime mortgage market, such as credit default swaps, or CDS, which allow investors to put bets on the likelihood that companies will default on bond payments.
He described as a 'Sword of Damocles' the US$45 trillion worth of credit swaps.
'That's more than five times the entire government bond market of the United States. It's almost equal to the entire household wealth of the United States,' Mr Soros said.
'This US$45 trillion market is totally unregulated,' he said. -- AP
Singapore Advance GDP Estimates for First Quarter 2008
Advance GDP Estimates for First Quarter 2008
Gross Domestic Product at 2000 Prices
(Percentage change over corresponding period of previous year)
1Q07 2Q07 3Q07 4Q07 2007 1Q08*
Overall GDP
7.0 9.1 9.5 5.4 7.7 7.2
Goods Producing Industries
Manufacturing
3.9 8.6 11.0 0.2 5.8 13.2
Construction
14.4 22.4 20.1 24.3 20.3 14.6
Services Producing Industries
7.7 8.6 8.5 7.7 8.1 7.6
* Advance estimates
1. Economic growth picked up pace in the first quarter of 2008. Advance estimates1 show that real gross domestic product (GDP) rose by 7.2 per cent on a year-on-year basis in the first quarter, faster than the 5.4 per cent gain in the final quarter of 2007. On a quarter-on-quarter seasonally adjusted annualised basis, real GDP expanded by 16.9 per cent, after declining by 4.8 per cent in the previous quarter.
2. The manufacturing sector is estimated to have expanded by 13.2 per cent in the first quarter, compared with a 0.2 per cent growth in the fourth quarter of 2007. This was largely due to a surge in the output of the biomedical manufacturing cluster, following its contraction in the previous quarter. The rest of the manufacturing clusters also enjoyed better performance in the first quarter with the exception of the transport engineering and precision engineering clusters whose growth moderated.
3. The construction sector is estimated to have grown by 14.6 per cent in the first quarter, after a 24.3 per cent gain in the preceding quarter.
1 The advance GDP estimates for first quarter 2008 are computed largely from the first two months of the quarter (i.e. January and February 2008). They are intended as an early indication of the GDP growth in the quarter, and are subject to revision when more comprehensive data becomes available.
4. The services producing industries are estimated to have grown by 7.6 per cent in the first quarter, similar to the 7.7 per cent in the previous quarter. Financial services continued to be the fastest growing among the services sectors.
5. The preliminary GDP estimates for the first quarter of 2008, including performance by sectors, sources of growth, inflation, employment and productivity, will be released in May 2008 in the Economic Survey of Singapore.
MINISTRY OF TRADE AND INDUSTRY
10 April 2008
Gross Domestic Product at 2000 Prices
(Percentage change over corresponding period of previous year)
1Q07 2Q07 3Q07 4Q07 2007 1Q08*
Overall GDP
7.0 9.1 9.5 5.4 7.7 7.2
Goods Producing Industries
Manufacturing
3.9 8.6 11.0 0.2 5.8 13.2
Construction
14.4 22.4 20.1 24.3 20.3 14.6
Services Producing Industries
7.7 8.6 8.5 7.7 8.1 7.6
* Advance estimates
1. Economic growth picked up pace in the first quarter of 2008. Advance estimates1 show that real gross domestic product (GDP) rose by 7.2 per cent on a year-on-year basis in the first quarter, faster than the 5.4 per cent gain in the final quarter of 2007. On a quarter-on-quarter seasonally adjusted annualised basis, real GDP expanded by 16.9 per cent, after declining by 4.8 per cent in the previous quarter.
2. The manufacturing sector is estimated to have expanded by 13.2 per cent in the first quarter, compared with a 0.2 per cent growth in the fourth quarter of 2007. This was largely due to a surge in the output of the biomedical manufacturing cluster, following its contraction in the previous quarter. The rest of the manufacturing clusters also enjoyed better performance in the first quarter with the exception of the transport engineering and precision engineering clusters whose growth moderated.
3. The construction sector is estimated to have grown by 14.6 per cent in the first quarter, after a 24.3 per cent gain in the preceding quarter.
1 The advance GDP estimates for first quarter 2008 are computed largely from the first two months of the quarter (i.e. January and February 2008). They are intended as an early indication of the GDP growth in the quarter, and are subject to revision when more comprehensive data becomes available.
4. The services producing industries are estimated to have grown by 7.6 per cent in the first quarter, similar to the 7.7 per cent in the previous quarter. Financial services continued to be the fastest growing among the services sectors.
5. The preliminary GDP estimates for the first quarter of 2008, including performance by sectors, sources of growth, inflation, employment and productivity, will be released in May 2008 in the Economic Survey of Singapore.
MINISTRY OF TRADE AND INDUSTRY
10 April 2008
GENTING International has awarded a $340 million contract to Singapore-listed Low Keng Huat
Hard Rock Hotel contract awarded
By ARTHUR SIM
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GENTING International has awarded a $340 million contract to Singapore-listed Low Keng Huat (S) Ltd to build the Hard Rock Hotel at Resorts World at Sentosa (RWS).
Rock on: It will also have conference facilities, more than 20 meeting rooms and a large ballroom with seating for 7,300 guests
The latest construction award brings the tally of construction contracts to over $1 billion.
The Hard Rock Hotel will be the first and only such hotel here. It is also one of six hotels at the $6 billion RWS development.
Expected to open in early 2010, the Hard Rock Hotel will have 360 keys (rooms), including nine suites and 351 rooms.
It will also have conference facilities, more than 20 meeting rooms and a large column-free ballroom with seating for 7,300 guests.
Michael Chin, executive vice-president of projects at RWS, said that Low Keng Huat was selected from a tender exercise which drew 'several bids'.
He added that the construction of the resort is entering a new phase in which the superstructures such as the hotels will be built.
'Low Keng Huat's proven track record and expertise in building construction and property development, especially in hospitality-related sectors, were the key factors in our selection,' Mr Chin said.
One of the challenges in the construction of the Hard Rock Hotel will be the ballroom.
Low Keng Boon, managing director at Low Keng Huat, said the difficulty in constructing the ballroom lies in the fact that it is completely column-free, without the support of beams for a foundation.
With a floor area of 6,500 sq m and at a height of 11m, Mr Low explained that extremely large trusses will have to be specially manufactured to withstand the weight of the entire structure.
RWS will have some 1,800 rooms, spread across its six hotels of varying themes. Topping the list are Maxims Residences, Hotel Michael and the Hard Rock Hotel.
By ARTHUR SIM
Email this article
Print article
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GENTING International has awarded a $340 million contract to Singapore-listed Low Keng Huat (S) Ltd to build the Hard Rock Hotel at Resorts World at Sentosa (RWS).
Rock on: It will also have conference facilities, more than 20 meeting rooms and a large ballroom with seating for 7,300 guests
The latest construction award brings the tally of construction contracts to over $1 billion.
The Hard Rock Hotel will be the first and only such hotel here. It is also one of six hotels at the $6 billion RWS development.
Expected to open in early 2010, the Hard Rock Hotel will have 360 keys (rooms), including nine suites and 351 rooms.
It will also have conference facilities, more than 20 meeting rooms and a large column-free ballroom with seating for 7,300 guests.
Michael Chin, executive vice-president of projects at RWS, said that Low Keng Huat was selected from a tender exercise which drew 'several bids'.
He added that the construction of the resort is entering a new phase in which the superstructures such as the hotels will be built.
'Low Keng Huat's proven track record and expertise in building construction and property development, especially in hospitality-related sectors, were the key factors in our selection,' Mr Chin said.
One of the challenges in the construction of the Hard Rock Hotel will be the ballroom.
Low Keng Boon, managing director at Low Keng Huat, said the difficulty in constructing the ballroom lies in the fact that it is completely column-free, without the support of beams for a foundation.
With a floor area of 6,500 sq m and at a height of 11m, Mr Low explained that extremely large trusses will have to be specially manufactured to withstand the weight of the entire structure.
RWS will have some 1,800 rooms, spread across its six hotels of varying themes. Topping the list are Maxims Residences, Hotel Michael and the Hard Rock Hotel.
Wednesday, April 9, 2008
BT: Analysts staying upbeat on construction stocks
Business Times - 07 Apr 2008
Analysts staying upbeat on construction stocks
By LYNETTE KHOO
DESPITE the upward cost spiral of raw materials such as steel and granite, analysts believe strong orders from both the public and private sector will underpin the construction sector.
In its 'Building Blocks for Growth' investment seminar over the weekend, OCBC Investment Research highlighted the growth prospects in the sector to its preferred clients, pointing to the string of contracts pouring into the local construction sector from public projects to re-invent Singapore as well as jobs from the property sector.
CIMB-GK analyst Lawrence Lye reiterated his 'overweight' rating on the sector in his report dated April 4.
Last year's brisk construction activities brought total contracts awarded to a new record high of $24.5 billion, breaching the previous peak in 1997 of $24.4 billion.
The Building and Construction Authority (BCA) is projecting that some $23-27 billion worth of contracts will be awarded this year.
But analysts are also pointing to the challenges ahead for this sector. Recent downside risks are emerging in the form of higher raw material costs. The upward pressure on prices of construction materials such as steel is further exacerbated by increased global demand for building materials.
'The strong growth in Asia has also buoyed demand for most building materials,' OCBC said in its report. 'In Singapore, the growth in construction demand in 2008 is likely to be broad-based, stretching from residential, commercial, industry to the civil engineering segments.'
Escalating construction costs are leading to higher breakeven prices, Mr Lye of CIMB-GK said, estimating that the construction cost for an average luxury condominium development is at least $450 per square foot.
Another sticking point is coming from the easing of residential property prices, he added. This has recently been reflected in the delay in property launches, lower transaction volumes, as well as the lower-than-expected prices for en bloc sales and aborted en bloc sales.
Mr Lye noted that rising property prices over the past few years have prompted many non-traditional property developers, such as construction companies, media and publishing companies and hotel groups, to jump into the fray to capitalise on quick profits.
The success of these 'newbie developers' hinges on their ability to speed-to-market - to sell their properties quickly before the market turns down and prices fall to below their costs.
But the tide is now turning against them, given the US sub-prime problems in mid-2007 that have led to a substantial weakening in consumer sentiment, and escalating construction costs since early 2007 when the Indonesian government started the export ban on sand and granite to Singapore.
'With continued rising construction costs exacerbated by higher steel prices, these construction companies-turned-developers are likely to be saddled with properties that are below current benchmark prices,' Mr Lye said.
While expressing caution on such companies, Mr Lye recommends that investors focus on pure-play construction companies or specialist contractors. His top picks are Holdings, Tat HongTiong Woon Corporation and CSC Holdings.
OCBC is initiating a 'buy' rating on Pan-United Corp and upgrading its call on Tee International to 'buy' from 'hold'. It does not have a rating for the sector yet.
Friday, April 4, 2008
Warren Buffett
1943: (13 years old)
Buffett filed his first income tax return, deducting his bicycle as a work expense for $35. [21]
1945: (15 years old)
In his senior year of high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in a barber shop. Within months, they owned three machines in different locations.
1949: (19 years old)
In 1949, he was initiated into Alpha Sigma Phi Fraternity while an undergraduate at the Wharton Business School at the University of Pennsylvania. His father and uncles were also Alpha Sigma Phi brothers from the chapter at Nebraska, where Warren eventually transferred.
1950: (20 years old)
Buffett enrolled at Columbia Business School after learning that Benjamin Graham and David Dodd, two well-known securities analysts, taught there.
1951: (21 years old)
Buffett discovered Graham was on the Board of GEICO insurance at the time. After taking a train to Washington, D.C. on a Saturday, Buffett knocked on the door of GEICO's headquarters until a janitor allowed him in. There, he met Lorimer Davidson, the Vice President, who was to become a lasting influence on him and life-long friend.[22]
Buffett graduated from Columbia and wanted to work on Wall Street. Buffett offered to work for Graham for free but Graham refused. He purchased a Sinclair gas station as a side investment, but that venture did not work out as well as he had hoped. Meanwhile, he worked as a stockbroker. During that time, Buffett also took a Dale Carnegie public speaking course. Using what he learned, he felt confident enough to teach a night class at the University of Nebraska, "Investment Principles." The average age of the students he taught was more than twice his own.
1952: (22 years old)
Buffett married Susan Thompson.
1954: (24 years old)
Benjamin Graham offered Buffett a job at his partnership with a starting salary of $12,000 a year. Here, he worked closely with Walter Schloss.
Susan had her first child, Howard Graham Buffett.
1956: (25 years old)
Benjamin Graham retired and folded up his partnership.
Buffett's personal savings are now over $140,000.
Buffett returned home to Omaha and created Buffett Associates, Ltd., an investment partnership.
1957: (27 years old)
Buffett had three partnerships operating the entire year.
Buffett purchased a five-bedroom, stucco house on Farnam Street for $31,500.
Susan was about to have her third child.
1958: (28 years old)
Buffett had five partnerships operating the entire year.
1959: (29 years old)
Buffett had six partnerships operating the entire year.
Buffett was introduced to Charlie Munger.
1960: (30 years old)
Buffett had seven partnerships operating the entire year.
The partnerships were: Buffett Associates, Buffett Fund, Dacee, Emdee, Glenoff, Mo-Buff, and Underwood.
Buffett asks one of his partners, a doctor, to find ten other doctors who will be willing to invest $10,000 each into his partnership. Eventually, eleven doctors agreed to invest.
1961: (31 years old)
Buffett revealed that Sanborn Map Company accounted for 35% of the partnerships' assets.
Buffett explained that in 1958, Sanborn sold at $45 per share when the value of the Sanborn investment portfolio was $65 per share. This meant buyers valued Sanborn at "minus $20" per share, and buyers were unwilling to pay more than 70 cents on the dollar for an investment portfolio with a map business thrown in for nothing.
Buffett reveals that he earned a spot on the board of Sanborn.
1962: (32 years old)
Buffett's partnerships, in January 1962, had in excess of $7,178,500 of which over $1,025,000 belonged to Buffett.
Buffett merges all partnerships into one partnership.
Buffett discovered a textile manufacturing firm, Berkshire Hathaway. Buffett's partnerships began purchasing shares at $7.60 per share.
1965: (35 years old)
When Buffett's partnerships began aggressively purchasing Berkshire they paid $14.86 per share while the company had working capital (current assets minus liabilities) of $19 per share, this did not include the value of fixed assets (factory and equipment).
Buffett took control of Berkshire Hathaway at the board meeting and named a new President, Ken Chace, to run the company.
1966: (36 years old)
Buffett closes the partnership to new money.
Buffett wrote in his letter “unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL.”
In a second letter, Buffett announced his first investment in a private business — Hochschild, Kohn, and Co, a privately owned Baltimore department store.
1967: (37 years old)
Berkshire paid out its first and only dividend of 10 cents.
1969: (39 years old)
Following his most successful year, Buffett liquidated the partnership and transferred their assets to his partners. Among the assets paid out were shares of Berkshire Hathaway.
1970: (40 years old)
As chairman of Berkshire Hathaway, began writing his now-famous annual letters to shareholders.
1973: (43 years old)
Berkshire began to acquire stock in the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the company and its flagship newspaper, and became a member of its board of directors.
1974: (44 years old)
The SEC opens a formal investigation into Warren Buffett and one of Berkshire's mergers.
1977: (47 years old)
Berkshire indirectly purchases the Buffalo Evening News for $32.5 million. Anti-trust charges brought.
1979: (49 years old)
Berkshire began to acquire stock in ABC. With the stock trading at $290 per share, Buffett's net worth neared $140 million. However, he lived solely on his salary of $50,000 per year.
Berkshire began the year trading at $775 per share, and ended at $1,310. Buffett's net worth reached $620 million, placing him on the Forbes 400 for the first time.
1988: (58 years old)
Buffett began buying stock in Coca-Cola Company, eventually purchasing up to 7 percent of the company for $1.02 billion. It would turn out to be one of Berkshire's most lucrative investments, and one which he still holds.
1990: (60 years old)
Scandals involving Greenberg and Gutfreund appear.
1999: (69 years old)
Buffett is named the top money manager of the 20th century in a survey by the Carson Group, ahead of Peter Lynch and John Templeton.[23]
2002: (72 years old)
Buffett entered in $11 billion worth of forward contracts to deliver US dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion.
2004: (73 years old)
His wife, Susan, passes away.
2006: (75 years old)
Buffett announced in June that he would gradually give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006. The largest contribution will go to the Bill and Melinda Gates Foundation.[24]
2007: (76 Years old)
In a letter to shareholders, Buffett announced that he was looking for a younger successor or perhaps successors to run his investment business.[25] Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett.
2008: (77 Years old)
Buffett becomes the richest man in the world according to Forbes.[26]
Buffett filed his first income tax return, deducting his bicycle as a work expense for $35. [21]
1945: (15 years old)
In his senior year of high school, Buffett and a friend spent $25 to purchase a used pinball machine, which they placed in a barber shop. Within months, they owned three machines in different locations.
1949: (19 years old)
In 1949, he was initiated into Alpha Sigma Phi Fraternity while an undergraduate at the Wharton Business School at the University of Pennsylvania. His father and uncles were also Alpha Sigma Phi brothers from the chapter at Nebraska, where Warren eventually transferred.
1950: (20 years old)
Buffett enrolled at Columbia Business School after learning that Benjamin Graham and David Dodd, two well-known securities analysts, taught there.
1951: (21 years old)
Buffett discovered Graham was on the Board of GEICO insurance at the time. After taking a train to Washington, D.C. on a Saturday, Buffett knocked on the door of GEICO's headquarters until a janitor allowed him in. There, he met Lorimer Davidson, the Vice President, who was to become a lasting influence on him and life-long friend.[22]
Buffett graduated from Columbia and wanted to work on Wall Street. Buffett offered to work for Graham for free but Graham refused. He purchased a Sinclair gas station as a side investment, but that venture did not work out as well as he had hoped. Meanwhile, he worked as a stockbroker. During that time, Buffett also took a Dale Carnegie public speaking course. Using what he learned, he felt confident enough to teach a night class at the University of Nebraska, "Investment Principles." The average age of the students he taught was more than twice his own.
1952: (22 years old)
Buffett married Susan Thompson.
1954: (24 years old)
Benjamin Graham offered Buffett a job at his partnership with a starting salary of $12,000 a year. Here, he worked closely with Walter Schloss.
Susan had her first child, Howard Graham Buffett.
1956: (25 years old)
Benjamin Graham retired and folded up his partnership.
Buffett's personal savings are now over $140,000.
Buffett returned home to Omaha and created Buffett Associates, Ltd., an investment partnership.
1957: (27 years old)
Buffett had three partnerships operating the entire year.
Buffett purchased a five-bedroom, stucco house on Farnam Street for $31,500.
Susan was about to have her third child.
1958: (28 years old)
Buffett had five partnerships operating the entire year.
1959: (29 years old)
Buffett had six partnerships operating the entire year.
Buffett was introduced to Charlie Munger.
1960: (30 years old)
Buffett had seven partnerships operating the entire year.
The partnerships were: Buffett Associates, Buffett Fund, Dacee, Emdee, Glenoff, Mo-Buff, and Underwood.
Buffett asks one of his partners, a doctor, to find ten other doctors who will be willing to invest $10,000 each into his partnership. Eventually, eleven doctors agreed to invest.
1961: (31 years old)
Buffett revealed that Sanborn Map Company accounted for 35% of the partnerships' assets.
Buffett explained that in 1958, Sanborn sold at $45 per share when the value of the Sanborn investment portfolio was $65 per share. This meant buyers valued Sanborn at "minus $20" per share, and buyers were unwilling to pay more than 70 cents on the dollar for an investment portfolio with a map business thrown in for nothing.
Buffett reveals that he earned a spot on the board of Sanborn.
1962: (32 years old)
Buffett's partnerships, in January 1962, had in excess of $7,178,500 of which over $1,025,000 belonged to Buffett.
Buffett merges all partnerships into one partnership.
Buffett discovered a textile manufacturing firm, Berkshire Hathaway. Buffett's partnerships began purchasing shares at $7.60 per share.
1965: (35 years old)
When Buffett's partnerships began aggressively purchasing Berkshire they paid $14.86 per share while the company had working capital (current assets minus liabilities) of $19 per share, this did not include the value of fixed assets (factory and equipment).
Buffett took control of Berkshire Hathaway at the board meeting and named a new President, Ken Chace, to run the company.
1966: (36 years old)
Buffett closes the partnership to new money.
Buffett wrote in his letter “unless it appears that circumstances have changed (under some conditions added capital would improve results) or unless new partners can bring some asset to the partnership other than simply capital, I intend to admit no additional partners to BPL.”
In a second letter, Buffett announced his first investment in a private business — Hochschild, Kohn, and Co, a privately owned Baltimore department store.
1967: (37 years old)
Berkshire paid out its first and only dividend of 10 cents.
1969: (39 years old)
Following his most successful year, Buffett liquidated the partnership and transferred their assets to his partners. Among the assets paid out were shares of Berkshire Hathaway.
1970: (40 years old)
As chairman of Berkshire Hathaway, began writing his now-famous annual letters to shareholders.
1973: (43 years old)
Berkshire began to acquire stock in the Washington Post Company. Buffett became close friends with Katharine Graham, who controlled the company and its flagship newspaper, and became a member of its board of directors.
1974: (44 years old)
The SEC opens a formal investigation into Warren Buffett and one of Berkshire's mergers.
1977: (47 years old)
Berkshire indirectly purchases the Buffalo Evening News for $32.5 million. Anti-trust charges brought.
1979: (49 years old)
Berkshire began to acquire stock in ABC. With the stock trading at $290 per share, Buffett's net worth neared $140 million. However, he lived solely on his salary of $50,000 per year.
Berkshire began the year trading at $775 per share, and ended at $1,310. Buffett's net worth reached $620 million, placing him on the Forbes 400 for the first time.
1988: (58 years old)
Buffett began buying stock in Coca-Cola Company, eventually purchasing up to 7 percent of the company for $1.02 billion. It would turn out to be one of Berkshire's most lucrative investments, and one which he still holds.
1990: (60 years old)
Scandals involving Greenberg and Gutfreund appear.
1999: (69 years old)
Buffett is named the top money manager of the 20th century in a survey by the Carson Group, ahead of Peter Lynch and John Templeton.[23]
2002: (72 years old)
Buffett entered in $11 billion worth of forward contracts to deliver US dollars against other currencies. By April 2006, his total gain on these contracts was over $2 billion.
2004: (73 years old)
His wife, Susan, passes away.
2006: (75 years old)
Buffett announced in June that he would gradually give away 85% of his Berkshire holdings to five foundations in annual gifts of stock, starting in July 2006. The largest contribution will go to the Bill and Melinda Gates Foundation.[24]
2007: (76 Years old)
In a letter to shareholders, Buffett announced that he was looking for a younger successor or perhaps successors to run his investment business.[25] Buffett had previously selected Lou Simpson, who runs investments at Geico, to fill that role. However, Simpson is only six years younger than Buffett.
2008: (77 Years old)
Buffett becomes the richest man in the world according to Forbes.[26]
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