Company Events

This site provides email notification for Singapore Company Events. It is better to be informed, then not informed. Check it out.

http://www.listedcompany.com/ir.pl?action=email_subscribe

BP: How deep is Deepwater Horizon Oil Rig

http://www.ouramazingplanet.com/infographic-tallest-mountain-to-deepest-ocean-trench-0249/

Click on image for full view

What can oil companies do to prevent such reoccurence
Exxonmobile CEO said that it is harder to resolve the situation once the well is blown up, and thus the focus had always been to prevent it in the first place.

This just shows how ill-equipped the industry is in handling such situation, and the lack of contingency plans.

Drilling a relief well takes months, and it is not feasible to pre-drill a relief well for every drilling operations. Think of what happens if the relief well blows up instead of the main well. Then another relief well for the first relief well had to be in place, etc.

The key still lies with the blow out preventer. One suggestion would be to install a secondary blow out preventer, which can be mechanically and manually operated by robotics on the sea floor (in case the control tower got blown up as in this BP case).

Previous post on BP:
http://sgretailinvestor.blogspot.com/2010/05/bp-plc-adr.html

Charles Nenner 2010-2011 Investor Outlook

Reference: http://fxmarketanalysis.wordpress.com/2010/04/03/charles-nenner%E2%80%99s-high-conviction-trends-trades-2010-11-investor%E2%80%99s-roadmap/

Stock's Outlook:

1. Apr 2010: Stocks peak around the third week around 1170
2. May – Jun 2010: Pullback up to 10-20%
3. Aug 2010: Recovery and final peak
4. Sep 2010 - Mid 2011: Down to around March 2009 lows
5. Mid 2011 - 2012: Recover to prior highs peaking in 2012
6. 2013: Long term downtrend for many years. ‘lost decade’ similar to that experienced by Japan. Big military conflicts in 2013.

Other Charles Nenner Posts:

1. http://sgretailinvestor.blogspot.com/2011/01/charles-nenner-2011-updates.html
2. http://sgretailinvestor.blogspot.com/2010/09/charles-nenner-track-record.html
3. http://sgretailinvestor.blogspot.com/2010/08/charles-nenner-updates.html

U.S. Debt as Percentage of GDP

Source: http://www.usgovernmentspending.com/federal_debt_chart.html

Updates on Books

Updated the watchlist section of the recommended books for reading:
http://sgretailinvestor.blogspot.com/2009/09/recommended-books.html

Credit Derivatives

Credit Link Notes

A good explanation can be found here:
http://www.barbicanconsulting.co.uk/cln

Investment Banks - Goldman Sachs

The concern with Goldman Sachs

US Government may pass a law to ensure that Investment Banks are split out from Commerical Banks. What this probably entails is that only Commercial Banks will continue to enjoy protection from the government and thus preserve their AAA, AA ratings.

Investment Banks (the likes of Goldman) may lose the implicit government protection and thus results in a rating drop to A. This will increase their cost of capital by 10-80 basis points (comparing treasury bills with A rated bonds).

Looking at their capital base (total liability) of nearly 800b, an increase of 80 basis points will mean an increase in 6.4b interest expenses.

This will reduce their 13b profits to 7b.