zondag 9 mei 2010

Google invest nearly $40 million into wind farms to promote clean energy

Mainly due to the horrific oil leak poisoning the Gulf, Google has decided to invest an amount of 38.8 million dollars into wind power. More precise, this investment is situated in North Dakota, which in known for its strong winds. Of course this feature is ideal for wind power harvesting. With this investment Google mainly wants to promote the use of clean energy, which will be indispensable in the future.

The wind farms themselves include some 113 turbines that can power up to 55,000 houses. While it is a small step, it represents an appetite from Google to speed along the progress of renewable energy.

The goal Google wants to set with this investment is to “accelerate the deployment of the latest clean energy technology while providing attractive returns to Google.” Of course Google is also satisfied with the fact that this investment is shown in many news reports, papers, etc. I think this also was the effect Google wanted to create. Due to these positive reactions, Google gets a better name and gets more used every day. In my opinion, Google did this investment for two reasons: to indeed help with the battle against the global warming, and to get a better name so that the use of Google is stimulated all over the world.


Niels Roels, 2FV4

The source used to write this blog: http://thenextweb.com/google/2010/05/03/google-invest-nearly-40-million-into-wind-power/

donderdag 6 mei 2010

Fearing inflation, wealthy stock up on hard assets

Some economists think that the economy will grow and others expect a relapse. The first option can cause inflation and the second can cause deflation. It doesn’t matter which direction the economy follows, in both cases investors can protect their money.

On the one hand, the gold indicator seemed attractive, with a grow of 21%. Traditionally, tangible assets such as gold hold their value, even when the price level is increasing and the purchasing power of the dollar falls. So, asset managers are advising wealthy people to keep an important part of tangible assets as inflation-fighting tool in their portfolio.

On the other hand, contracted credit, stagnant wages and given overcapacity are signals that the risk of deflation (a decrease in the general price level of goods and services) is more likely. Last week, the statements of the Federal Reserve (the central bank of the United States) and J.P. Morgan were feeding this view.
“GenSpring Family Offices” advise their clients to gamble on two horses, it recommends taking both, long and short positions in commodities, in their portfolio. In case of inflation, they suggest investors have to change their illiquid part to more tangible assets.

There are also other trends visible in the world of asset management. Wealthy clients are showing more and more interest in direct investments, like in farmland, timberland, mines and naturally real estate. But these sorts of investments should be limited to 30% of the portfolio.

I agree with the fact that you have to protect your wealth. Investments like gold and real estate remain attractive for the richer people. Maybe we also have to follow the advice of asset managers, because they are well informed. At my opinion direct investments in mines and timberland are risk full when you aren’t familiar with this business. When you are considering to invest in such a direct investment, you have two options. First of all, you can ask professional advice. Or you can buy shares of this sort of funds.

http://www.investmentnews.com/article/20100502/REG/305029988

Benny De Meyer, 2FV4

dinsdag 4 mei 2010

Norsk Hydro buys Vale's aluminium business

The Norwegian company Hydro has reached an agreement to buy a majority stake in the aluminium operations of Brazilian miner “Vale”. Hydro is a global supplier of aluminium and aluminium products.
The company employs 19000 employees and has activities on all continents. With this extra take-over they want to become the world’s largest coal mining company.
In the opinion of the business managers is this agreement an important step to become a fully integrated aluminium company.
The Norwegian Hydro is convinced that this buy will also secure them supplies in aluminium from Brazil. In my opinion this take-over is a very good step in the right direction for Hydro because they still have a strong growth potential.

The Norwegian company “Hydro” has to pay 4.9 billion dollars for the take-over. In exchange for the sale Vale has received 1.1 billion dollars in cash and a 22% stake in Norsk Hydro. Vale is a pioneering mining company which transforms the earth’s mineral resources into sustainable development.

In my opinion this take-over is absolutely a good fact because both companies have the same market strategy and future plans. They both want to be the largest mining company in the world.

With also a lot of extra production activities in Brazil Hydro will move into the top class of global aluminium companies. I think we can only stimulate this expansion.

This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10095021.stm

De Bruycker Mathias
2FV4

zondag 2 mei 2010

Japan invests in Africa

Japan is willing to invest 3.4 billion dollars in Africa by 2012. The Japanese authorities are more specifically willing to invest in projects that respect the government and are committing to fight against global warming.

Today, the first amounts of money have already been received by Africa. More specific, this investment concerns a 300 million dollar loan given to Kenya. This loan is to be used for the construction of two geothermal plants for electricity production.

Other then investments like these, also Japanese banks are encouraging private investments on the continent. More specific, Japan set two goals in 2008: intensify its help in Africa and double its investments on the continent in order to achieve 3.4 billion dollars by 2012. 1.8 million dollars of this amount will be used to stimulate agriculture and infrastructure.

In my opinion, this investment is -as most investments are- good for the people receiving the money. Africa will certainly be able to use this amount of money and stimulate its economy. On the other hand, I also found out Japan doesn’t really want to help Africa, it’s not one of their main targets. The most important reason why Japan is investing in Africa is that it wants to compete with China, a country which is investing almost 4 times more in this continent than Japan does. By this investment, Japan is in my opinion trying to appear in the news in a good way to strengthen its own ‘good’ name.

Used sources: http://www.afriqueavenir.org/en/2010/04/27/japan-invests-in-africa/

Niels Roels
2FV4

vrijdag 30 april 2010

Why investors should care about Asia now...

The US economy was still recovering during the first quarter. The unemployment rate remained elevated. Housing data remained mixed. And credit remained fairly light. Yet large US companies appear to have performed particularly well during the first three months of the year, so who should they and their shareholders be thanking?

While Europe teeters amid a debt crisis and the domestic recovery starts and stops, major US multinationals are recording sales and earnings growth largely on the buying power of the rest of the world. Heavy industrial names like Caterpillar, technology leaders such as Intel and global consumer product and industrial leader like 3M have all made investors happy with better-than-expected first-quarter earnings results, with most of their profit growth coming from overseas, especially the Pacific.

US companies bolstering their revenues with sales abroad is not new, but the role these markets are playing has expanded recently as more established economics have buckled.

Asian demand is a huge factor in global growth, but not every nation within the region is poised for the same continued expansion. In fact, because China is the main source of that demand, certain sectors could see a bit of a slowdown in their earnings growth within the region.

Companies such as 3M, which on Tuesday posted earnings of $1.29 a share, up from 74 cents a share a year earlier, are turning their focus to emerging markets in ways that would have seemed inconceivable a decade ago.

By 'localizing' its products to optimally meet the needs of each regional emerging market, 3M essentially is able to offer customized products which can readily outperform local competitors' products.

Some of the emerging market surge is less about the economies themselves than about the cost of the raw materials and energy needed to power them.

Although a little caution is warranted particularly in the industrial and technology sectors.
It's important to note that the earnings of the US companies are increasingly coming from overseas.

These shares are for good and experienced investors only, I think, because you need to inform yourself very good about the evolution of the company and the share. You also need to look very good at the future of the company.
Once you have enough information you can decide with good taught if you will invest in these shares or not. If you do good research you can make a lot of money on these shares.


This blog is based on following article: http://www.smartmoney.com/investing/economy/why-investors-should-care-about-asia-now/?cid=1108#mod=BOL_hpp_footer

Liesbeth Masschelein

donderdag 29 april 2010

Greece crisis: investors wait on deal details

The article “Greece crisis: investors wait on deal details” talks about the European investors who are not able to invest in Greece until they know the details of the rescue plan for the Greek economy and other eurozone countries.

Nowadays there is a big fear that the Greek crisis could spread to other parts of the eurozone because our currency is very weak compared with the dollar.
President Barack Obama and the German Chancellor Angela Merkel have also their concerns over a possible contagion because Standard and Poors downgraded Spain’s debt which is a sign of a loss of confidence in another important European country. In other European countries the situation will also become very difficult because there is a high pressure.

They are convinced that the rescue plan should come there as soon as possible. If the EU will make a chance to conjure the financial crisis they have to prove that they are able to take important decisions in a very short time span.

In my opinion the statement of Angela Merkel is a bit contradictory because on the one hand the European negotiations about loans were jammed due to the German attitude. On the other hand she said that the negotiations with the Greek government, IMF and the European Commission need to be accelerated.

Analysts said that the provided packet of 45 billion Euros will not be enough to solve the Greek problem and that they will need a lot of money in the coming years.

This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10090310.stm

De Bruycker Mathias 2FV4

Incredibly inexpensive US stocks cheapest since 1990!

Even after the biggest rally since the 1930's, US stocks remain the cheapest in two decades as the economy improves.

Earnings estimates for Standard & Poor's 500 Index companies from Apple Inc. to intel Corp. and CSX Corp. climbed 9.1 percent on average in April, twice the gain in their prices and the largest monthly increase since at least 2006, data compiled by Bloomberg show. The benchmark gauge for American equities is trading at 14.2 times forecasts for its companies' profits, lower than any time since 1990, except for the six months after Lehman Brothers Holdings Inc. collapsed.

Income is beating analysts' estimates by 22 percent in the first quarter, making investors even more bullish that the rally will continue after the index climbed 80 percent since March 2009. While bears say the economy's recovery is too weak for earnings to keep up the momentum, Fisher Investments and BlackRock Inc. are snapping up companies whose results are most tied to economic expansion.

New-home sales surged the most since 1963, recovering from the April 16 rout when the Securities and Exchange Commission said it was suing New York-based Goldman Sachs Group Inc. for fraud. The index is up 9.2 percent for 2010, the largest gain in the world's 15 biggest equity markets, Bloomberg data show.

While analysts are raising estimates, they're not boosting investment ratings. It's easier for analysts to adjust their earnings estimates than to aggressively put forth strong 'buy' recommendations. It may be a reflection of concern about the resilience of earnings in 2011 and beyond.

Companies are losing the benefit of a weaker dollar after the currency appreciated 9.5 percent since November against a basket of six trading partners. A rising currency cuts demand for American exports and reduces overseas revenue when converted back to dollars.

David Rosenberg says US stocks are poised for losses because they've become too expensive

Economic growth will slow and stocks retreat as governments around the world reduce spending after supporting their economies through the worst recession since the 1930's.


In these times of crisis you should invest in sheep stocks such as these in America. The stock exchange always has a good evolution in the long run.

This blog was based on following article: http://www.investmentnews.com/article/20100426/FREE/100429917


Liesbeth Masschelein
2FV4