Dynanmic Duo

This is an interview from Barrons of Leon Cooperman and Steve Einhorn of Omega which manages USD 8.5 bn mainly in equities, so when these two share their viewpoints, one had better pay attention. There are a few thoughts I found interesting but the key comment that caught my eye was:

Are you worried that the Fed will have a hard time unwinding its balance sheet?

Einhorn: First of all, it is not an issue that investors will have to contend with for at least the next 12 to 18 months, which captures a good deal of most investors’ time horizons. Second, the Fed does not have to actually sell assets off its balance sheet. All it has to do to unwind its balance sheet is to let those securities mature. And as they mature over time, the Fed’s balance sheet declines. This notion of an abrupt end to QE is wrong. What they will do is taper it off. They have been buying $85 billion a month of securities. So, for example, when they begin to taper that off, whenever it happens, they’ll go to $75 billion a month, then $65 billion, or whatever the number happens to be. Tapering off should not be a jolt to economic activity or the markets. All they have got to do is let these assets mature and roll off.

Source: Barrons

 

INTUCH not added to the MSCI?

This news has local traders and brokers buzzing this morning regarding Shin Corp (ticker: Intuch) and how an “unclear nationality” of one of the major shareholders may cause the stock to be ineligible for the MSCI Index (see the statement below)

What’s the impact on the stock? Well a temporarily sharp sell off in the AM, as of 10.17am there’s been thb 3 bn traded on the stock 1/4 of today’s value traded thus far. But this just reminds us of when LH was delisted from the MSCI index a few years back and the stock dropped purely because of that, so its only fund flow, short term, no impact on the co’s fundamentals.

STANDARD ANNOUNCEMENTS – May 21, 2013 at 03:33 PM GMT
Announcement for May 21, 2013 at 03:33 PM GMTTHIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDICESUPDATE ON THE TREATMENT OF SHIN CORPORATION PCL IN THE MSCI THAILAND INDEXCOUNTRY CODE                TH
SECURITY NAME               SHIN CORP PCL
STANDARD                    NOT ADDED
LARGE CAP                   NOT ADDED
MID CAP                     -
ASIA APEX 50                -
TYPE OF EVENT               QUARTERLY INDEX REVIEW
EFFECTIVE DATE              03-JUN-2013

Re: Announcement sent on May 17, 2013

MSCI has clarified with the Stock Exchange of Thailand (SET) the
domestic/foreign classification of the major shareholders for Shin Corporation
PCL.

Following the clarification, the Foreign Inclusion Factor (FIF) of Shin
Corporation PCL will remain below 0.15 as part of the May 2013 Semi-Annual Index
Review. Consequently, as the free-float adjusted market capitalization of Shin
Corporation PCL is less than 1.8 times of the minimum free float-adjusted market
capitalization required for the MSCI Thailand Index, Shin Corporation PCL will
not be added to the MSCI Thailand Index as part of the May 2013 Semi-Annual
Index Review.

For further information on MSCI indices or MSCI data, visit our web site at
www.msci.com, or contact:

MSCI Global Client Service:
Americas Client Service: 1.888.588.4567 (toll free)/+ 1.212.804.3901
EMEA Client Service: + 44.20.7618.2222
Asia Pacific Client Service: + 852.2844.9333

THIS IS AN ANNOUNCEMENT FOR THE MSCI GLOBAL STANDARD INDICES

                                   End of announcement.
                                   Further announcements may occur as needed.

Stocks in the news (VGI) 22.05.13

VGI

VGI ramps up skytrain, Airport Rail Link coverage — VGI will begin selling ads in cross-category packages for the skytrain on October 1. The move will help to increase its gross profit margin by 1-2% and boost revenue to Bt1bn this year. In its cross-category package, clients can buy ad spaces on billboards and LED monitors on stations, train bodies, signs inside train carriages and on platform screen doors. The package will build an advertising network and help clients to reach more target customers. (Bangkok Post, 22/05/13)

Comment: They have a wonderful monopoly on the BTS advertising.