Buying bonds to artificially lower down the yields are not practically lowering the risk. Do not diverted by these noises. As long as the root of the problem unsolved, European debt crisis has seen no fundamental change for now.
Spain had its credit rating cut two levels by Fitch Ratings, which cited the “intensification” of the euro crisis, slower Spanish growth and regional finances as risks to the nation’s debt outlook.
Fitch cut its rating to AA- from AA+, the company said in a statement today from London. The outlook is negative. Fitch cited similar reasons for also downgrading Italy one level to A+, while maintaining Portugal at BBB-, saying it would complete a review of that ranking in the fourth quarter.
Spain’s rating, which was AAA until 2010, has now been lowered twice by Fitch as the deepest austerity measures in three decades fail to convince investors the nation can stem the surge in its debt burden. Moody’s Investors Service also warned on Oct. 4 “all but the strongest euro-area sovereigns” are likely to see further downgrades, as it cut Italy’s rating for the first time in almost two decades.
Fitch said it expects Spanish growth to remain below 2 percent a year through 2015. Still, the nation’s debt burden will peak at 72 percent of gross domestic product in 2013, below the forecast for the euro area on average, the company said.
Spain is paying yields of around 5 percent on its 10-year bonds even after the European Central Bank stepped in to prop up its bond market on Aug. 8. The gap between Spanish and German 10-year borrowing costs was 299 basis points today.
Y/Y: rev +51.5%, pat +190%, eps +220% (share buyback), OPM 23.5% vs 12.4%
Q/Q: rev +17%, pat +17%
Gearing remained to be insignificant, with cash of RM27m (equiv. to 12.9sen per share, which means the company is capable to fully repurchase 25% of the issued shares at current price)
Comments:
With 2Q numbers, Ebworx is likely to post 5.55sen (1.44sen for the next 2 quarters) premise on projects in hand. Ebworx is trading at 2011F 9x. It won a new contract from Maybank in June. With this i am quite optimistic on more contract wins and the likelihood of expanding into Indonesia with CIMB Niaga and Maybank's implementation which offers the re-rating catalyst. This also will pave the way for Ebworx to transfer from ACE to Main market.
Latest project won:
Maybank awards regional Collection and Debt Recovery to eBworx
Kuala Lumpur, 20 June 2011 - eBworx today announces it has received the award by Maybank to implement its Digital Collection and Recovery System (DCRS) which will cover its businesses regionally.
The regional solution will for a start cover the bank's operations in both Malaysia and Singapore.
This win marks another significant milestone in eBworx as it includes Malaysia's largest bank into its client list.
Global equities are shaky at the moment, with the European debt crisis unresolved, as well as indicating there is at least 50% chance they will lower the long-term U.S. sovereign ratings - within the next 90 days. As we expect Asian currencies to continue strengthening, it will be interesting to look at Asia dividend stocks which provide cashflow in both up and down markets.
Through our rigorous research, we have picked out Dividend Growth Stocks across 12 countries in AsiaPac which meet our proprietary 5-10 Formula:
Companies that have raised dividends for a minimum of 5 consecutive years, and
Increased those dividends by an average of 10% or more per year
Why Invest in Dividend Paying Stocks?
Only stable companies consistently pay out dividends
Cash Flow in both up and down markets
Compound your money more quickly
Cash in your pocket without selling
Hedge against inflation
A company's dividend payment comes from its operational success and not from the panic, hype, or analyst interpretations that influence its stock price. Throughout these rocky market periods, dividend payments allow us to make money even when the stock price moves lower.
**Companies with market capitalization in the lower half of each exchange are excluded -
So you are left with only the most stable stocks for long term investing**
Why are growing dividends important?
Dividends also have the added bonus of being exceptionally difficult for companies to fake. After all, it's difficult to convince lenders to loan money to a company if that company is going to turn around and hand it over to its shareholders. As a result, to sustainably make and increase those dividends, the business needs to generate serious cash on both a regular and repeatable basis.
Take a look at this video and see for yourself how dividends give you the Investment Edge:
How does APF's Dividend Growth Stock Picks help you?
Access a valuable list of all stable companies which have
Raised dividends for a minimum of 5 consecutive years, and
Increased those dividends by an average of 10% or more per year
Maximize Profits by zooming in on stocks with a track record of increasing dividend payouts
Lower Investment Risks by purchasing shares with a track record of dividend payouts
Save Countless Hours by having years of research at your fingertips
Exposure to fast-growing dividend payers should excite even the most conservative investors. By focusing only on the consistent growers, you score bigger checks every year (or more shares bought when reinvesting). More importantly, steady dividend increases bode well for a stock's future.
DISCLAIMER : Please keep in mind that this blog contains only my personal opinion and is provided for informational purposes only, and no mention of a particular investment product costitutes a recomendation to buy,sell, or hold that or any other investment product. Past results are not necessary indicative of future performance. Any trades or investments are committed at your own risk. I am not a professional money manager. Always consult your broker for any of your investment decision. Trade at your own risk. All opinion in this blog is intended for educational purpose only and owner of this blog is by no means liable for any potential damages that may be incurred from this information. Trade at your own financial risk as I assume no responsibility for your trading decisions in the markets.
