Hopefully.
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Gov't sets $300b for railway construction
(China Daily)
Updated: 2008-10-25 10:46
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The State Council has approved 2 trillion yuan ($292 billion) for the construction of a series of railway projects, to help boost economic growth amid the worldwide financial crisis.

Increasing investment in fixed assets has remained a catalyst of China's economic development. By 2010, the total length of China's railway will reach 90,000 km, according to the Ministry of Railways.

A number of major railway projects will be started soon, www.ce.cn - the country's leading economic news portal - quoted Wang Yongping, spokesman for the Ministry of Railways, as saying on Friday.

About 1.2 trillion yuan has already been allocated, he said.

Zheng Xinli, a senior government policy advisor, said: "In 1997, we dealt with the Asian financial crisis by stimulating domestic economic growth by investing in the construction of highways. This time the money will go on improving the rail network."

The National Development and Reform Commission is developing plans to improve the country's railway systems, he said.

It's true, that in times of economic slowdown, governments can use this opportunity to do the needed infrastructure upgrades, so that when the bull comes in a year or two's time, they will be in the best position with new improved infrastructure to take maximum advantage of investor confidence. I agree with what the chinese are doing!!

I don't agree with msian gov cutting infrastructure spending in bear times.....

However, I doubt it'll be able to help much. Unless the world steel usage picks up... Huaan is pretty much in a bad position. Coke prices have been declining by about -500 to -700 yuan per ton.... that's about 30-40% decline....

Wonder how Huaan's 3rd quarter report will be... don't keep your fingers crossed..

Also, the chinese coking companies have been reducing their production capacity by 50% to keep the prices from falling too low. Imagine that Huaan have just recently expanded their production capacity... so, b
1) basically, the money spent on expansion is wasted since probably wont be able to max out production
2) huaan will need to spend more money to maintain the extra production capacity too...
3) Wonder what happened to the takeover of the chinese steel plant? Did they paid for the takeover during the steel high price times? If they havent done the takeover, it's best to stay low for now and keep more cash..... I hope they didn't get loan to do the takeover.. else it'll be toast to own a steel making business now, with the steel prices not increasing in the reasonable future (~half to 1 year at least)

This post has been edited by eltaria: Oct 26 2008, 12:41 AM

Think only can decide after they published their 3Q result...

Picture would be clearer after they releasing the 3Q and 4Q result. By then it is much easier and have a clear picture where company financial situation is heading, whether it is a profit reduction of 30%, 50% or no profit at all. But market share price suggests the later.

In the present economic situation , it is better to think of the worst case scenario, that it could suffer losses too.

Maybe it collapses too. The risk you may have to take when buying Huaan.

Just my 2sen.

Don't think the company can collapse so fast... unless the account got problem. The expansion was supposed to be completed by 2Q08 and cash position still showing pretty all right figure, hopefully 3Q will not be too bad for them...

Also please note that company was generating quite some cash during first 2Q with ongoing expansion.

Beaten down to 21.5 cents now, look like real bargain, too back I enter too early

the NS royal family holdings in Huaan seems to be hit by margin calls

http://www.btimes.com.my/Current_News/BTIM...icle/index_html

http://announcements.bursamalaysia.com/EDM...23?OpenDocument

and loads of other YMAM tunku's tunku's disposal of huann shares.

So u know la ah ... will fall somemore ...

This post has been edited by klmc: Oct 27 2008, 12:09 PM

Not that much, they all in the list because they are shareholders of the holding company.

But that's not a good sign anyway. NS royal's company all not doing very well... hai...

All the margin calls would sink KLCI to 600 pts..unless the Govt steps in.

Never buy shares with margins , those group of investors are the most affected in 1997/98 Asia currency crisis.

Very true, margin suck blood... Don't ever think about that...

'not that much' ?


====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.A.M. Tunku Dato’ Seri Nadzaruddin Ibni Tuanku Ja’afar
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000

====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.A.M. Tunku Jawahir Bt. Tuanku Ja’afar
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000

====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.A.M. Tunku Dara Tunku Tan Sri Naquiah bte Tuanku Ja’afar
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000

====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.A.M. Tunku Tan Sri Imran Ibni Tuanku Ja'afar
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000

====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.A.M. Tunku Irinah binti Tuanku Ja’afar
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000

====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.M. Tunku Nurul Hayati Binti Tunku Bahador
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000

====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.A.M. Tunku Naquiyuddin Ibni Tuanku Ja'afar
21/10/2008 850,000
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000


====24/10/2008 Changes in Sub. S-hldr's Int. (29B) - Y.M. Tunku Mohamed Alauddin Tunku Naquiyuddin
21/10/2008 850,000
17/10/2008 1,879,000
20/10/2008 400,000


Notice that the seling is similar in lots .... looks like margin calls ... so do i expect more similar forced selling by this bunch if huaan drops more ?

If it sinks to 10sen, maybe worthwhile to take a gamble ???

How much could you lose ??

Total margin call is 850,000+1,879,000+400,000=3,129,000 share.
Their names all there because they are co-shareholder of the holding company (duplicate in laymen terms).

Yup, if 10 cents, I would gamble a little on it, not much harm done. Something like getting 100 lots only cost 1K, still cheaper than buying a high end HP or a PC.

If drop to 10 cents, I go lelong my pants to buy 100 lots...

Sell your PC or notebook in garage sales , do not need to sell yr underpants, just joking.

If you were to buy IOI , 100 lots assuming dropping 20sen a day, it is just like writing off Huaan everyday.

Of course, and unless you see upside trend, that IOI has the potentials.

I would rather prepare for the worst case.

This post has been edited by SKY 1809: Oct 28 2008, 10:14 AM

Wow! you pants worth 1K lor!

But better save for the last, seems like there is still more to come... now might not be real bottom yet... try speculate might end up kena burn, better wait...

When is the bottom ? 600, 500 or 400 pts ?

I don't know, gut feeling 600 will be very good entry point, but US might have more surprise for us to take The impact of unemployment will start to kick in after financial sector stabilized.