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ICBC Plans No Fund Raising; Loans Jump to Record in 2009

Industrial & Commercial Bank of China Ltd., the world’s largest lender by market value, said it has no fund-raising plan at the moment even as it boosted lending by 24 percent to a record last year.

ICBC’s capital adequacy ratio is “sound” and the highest among rivals, and pressure on capital raising is “not big,” President Yang Kaisheng said at a press conference in Beijing yesterday.

China’s banks doled out a combined 9.59 trillion yuan ($1.4 trillion) in new loans last year, helping the government engineer a turnaround in the world’s third- largest economy. The credit binge drained lenders’ capital and sparked concerns about asset bubbles, a higher number of bad loans and increased inflation pressure.

China’s publicly-traded banks have already raised about 131 billion yuan from bond and share sales since the second half of last year to replenish capital drained by loan growth, and they have announced plans to raise a further 127 billion yuan, according to Bloomberg data.

Beijing-based ICBC’s capital adequacy ratio, a measure of the bank’s financial strength, fell to 12.60 percent at the end of third quarter, from 13.06 percent at the end of 2008.

The nation’s policy makers aim to avert asset bubbles and restrain inflation by limiting new credit at 7.5 trillion yuan this year. China’s growth accelerated to 10.7 percent in the fourth quarter, the fastest pace since 2007, and property prices climbed the most in 21 months.

Boost Financing

ICBC said it will boost financing to projects already under construction and to small-and-medium sized firms and cut loans to new projects that are not government-backed and if they’re energy-intensive or polluting. Loans would also be reduced to sectors with overcapacity, Yang said.

Loans by the bank this year will be less than in 2009, Yang said. ICBC’s new loans were 1.03 trillion yuan last year, Yang said. That’s a record, according to calculations based on Bloomberg data.

After a government bailout five years ago, ICBC is now the world’s biggest bank by value. The lender has more than doubled profit during the past three years and has more than 16,000 outlets nationwide and 112 branches outside China, and 190 million personal customers — equivalent to the populations of Russia and Canada combined.

ICBC on March 4 submitted a tender offer to buy all shares in Thailand’s ACL Bank Pcl in a deal that would give ICBC a foothold in the southeastern Asian nation after acquisitions in Indonesia, Macau, South Africa and Canada since 2007. The bank aims to triple the share of profit coming from abroad to 10 percent.

ICBC will be “active and prudent” with overseas expansion this year, Yang said.

Mar

07

2010

Stocks and Stock Market Gaps

A “Gap” is a term used to describe the condition when a stock opens at a higher price than it closed the prior day.

The word gap refers to the space that is left in the daily chart. It is the “empty space” from yesterday’s close to today’s open.

Gaps can be either up or down and they can happen to all stocks and in all stock markets.

Gaps are measured from the prior day’s closing price to the current day’s opening price. The post market activity and pre market activity do not affect the gap.

Stocks can trade after market hours, and at pre market starting, but these are not considered “normal” market hours.

For example, stock X closes at 7.00. It trades in after market hours up to 7.50. The next day it starts trading at 7.20 and trades up to 7.60. Later in the day the stock is all the way down to 7.10.

The “Gap” as we measure it is only 20 cents (7.20 – 7.00). All those post and pre market trades do not matter. The stock traded, and people made and lost money, but the gap is not affected!

What causes gaps? Usually it is news driven. Individual stocks can gap up or down due to news such as earnings reports, earnings pre-announcements, analyst’s upgrades and downgrades, rumors, message board posts, key people in the company commenting, buying or selling the stock.

Groups of stocks or the whole market may gap-up or gap-down due to various economic reports, news on the economy, political news, or major world events. These news can cause many individual issues to gap with the market.

Many stocks can move very closely with the market and others may be in the sectors that are mostly affected by the news.

Whatever the exact reasons, gaps are the result of some kind of events happening while the market is closed. The result is the buying or selling pressure at the opening of the next day, that will make the stock open at a different price than the one it closed.

Why are “Gaps” important?

This sudden move by a stock, the sudden change in demand, is often the beginning of a major move.

There are i.e. swing trading strategies that capitalize on entering after a gap, and other tactics like i.e. momentum trading that capitalize on several days moves after a gap.

Feb

19

2010

MEMBERS ONLY SECTION! “Trader Talk” is now LIVE!

Our highly anticipated Members Only section is now live!

“Trader Talk” is a one stop shop that is loaded with a TON of information about Trading, Portfolio Diversification, Risk Management, Trading Tips and Tricks, And MUCH, MUCH more!

All of the posts are reserved for Members Only, so what are you waiting for?

ChartPoppers.com is available to everyone FREE of Charge, and is dedicated to providing Traders from the Beginner level, to the most experienced of Traders, with the information YOU need to become a successful Trader.

Whether you’re new to the game, or just getting started, you can’t find a better place anywhere on the Internet that lays things out for you in a simple to understand way, and shows you different ways you can profit in the Stock Market!

It’s always been our philosophy that the more information you have, the better trader you can/will become, so we do our part in making sure you get timely, reliable information that will help you be a successful Trader.

Sign-up today, and on top of gaining access to our newly launched “Trader Talk” page, we will also give you a complimentary copy of our E-BOOK, “Investors Edge”.

You’ll also receive our email newsletter that is even more exclusive, where you can expect to receive even more information on a weekly basis including, different Trading Opportunities, Tips and Tricks, Stock Market Terminology, ground breaking Stock Picks, and other opportunities that surround our favorite topic… MAKING MONEY!

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P.S. – We will be updating the “Trader Talk” page a lot throughout the next couple of weeks to get all of our data up there, so be sure to check back often!

Feb

09

2010

What’s the BIG deal about Penny Stocks?

Penny Stocks are probably the easiest way to go from rags to riches literally overnight!

So many people, every year become millionaires from Trading Penny Stocks, I think it would be a safe bet to say that they create more millionaires than anything else on the planet!

It’s alot more common to hear of a stock going from $0.10 to $0.40 (400% Increase), than it is to hear of a stock going from $10.00 to $40.00! The margins with Penny Stocks are simply OUTSTANDING!

Like anything else, there are downsides to Penny Stocks, and lot’s of risk. I’m going to go over with you some of the best ways to profit from these types of stocks to try and help you minimize your risk and maximize your potential gain!

First off, you need to understand how the markets work!

The Stock Market is like an auction. On one side of the fence you have people who are ‘Bidding’ for a stock (This is the amount a person is willing to pay for a stock) and on the other side you have people who are ‘Offering’ their stock for sale (Self explanatory). Seeing how everything is based on supply and demand, the more ‘interest’ there is in a stock, the more the price tends to rise. Usually stocks get more demand based on a few factors: Financials, News, Speculation, and many other factors.

In the case of Penny Stocks, it’s usually speculation. Look at it as finding a company that YOU think is going to ‘hit it big’ one day, and having the opportunity to purchase shares in that company for pennies on the dollar.

This is where it can get a bit tricky! In my experience, the vast majority of Penny Stocks never make it too the ‘big times’ (Just think about how many coffee shops, stores, etc. etc. close down in your city EVERY YEAR) .. The concept is the same. The question then becomes, “How do I make money with these stocks”?

Ever heard of the term ‘Day Trade’? Day Trading is an art! You need to pay very close attention to what’s going on, and never trade with emotion. Look at it as a business. Everyday there are dozens of Penny Stocks that have these extremely large jumps in price, but they are very short lived. The idea here is to get in early, and sell at the top, or close to it. This may sound easy, and it can be, but it is not that easy if you don’t know what to look for, how to properly trade, and if you get to greedy!

When we profile a certain stock, we think it’s a good idea to put in a stop loss order. A stop loss order is like your safety net, you have to allow for a certain amount of ‘flux’ in the market in-case it has as intra-day low before bouncing back up. A 10% stop loss is usually a good bet, that way if the stock goes down 7-8% before going back up, you’re covered, and on the other hand if the stock goes down 10%, you automatically sell all of your stock and limit your loss.

The rest is based on your own perception of the market. What I mean by this is really quite simple… Let’s say you invest $5000 in a .10 company (50,000 shares) right in the morning as soon as the Markets open. You put in your stop loss (-10%) and the stock starts to go up. We usually sell in increments of say, in this case, 10,000 share blocks until we are even or so on our money.

Here’s an example (based on the above transaction): – 10,000 shares sold at .15 = $1500.00 – 10,000 shares sold at .20 = $2000.00 – 10,000 shares sold at .30 = $3000 for a TOTAL of $6500.00

As you can see from the example above, we just made a $1500.00 profit (+30%) and we still have 20,000 shares left. Now based on the momentum of the stock we’d either let the rest of the shares ride, or just get rid of all of them and make a nice little profit. This is all based on the fact that the stock was going up, and going up fast. The beautiful thing about this situation is the fact that you can place these orders the second you purchase your shares, and seeing how you’ve already put in place a Stop Loss, if this transaction were to go completely sideways, you’d limit your losses at a maximum of $500

Keep in mind that EVERY Stock you trade is different, and the rules may need to be tweaked a little here and there in order for this situation to be optimal.

On the other hand, some stocks take more time to go up, and are not what we’d consider a true day trade. If that is the case, the principle stays the same, but you need to be a bit more patient with it.

Key things to ALWAYS keep in mind!

Make sure whatever stock you decide to trade is a liquid stock. What I mean by this is really quite simple, and you will be able to tell right away. Make sure the stock already trades on a day to day basis, otherwise you can get stuck with shares that you can’t sell! Remember, if there’s no buyers, then there’s no demand, and if there’s no demand, nobody will buy the stock off of you! In short, look at a chart and check out the average volume that the stock trades on a day to day basis, and make sure it’s well over the dollar amount you plan on investing into any stock.

I have a lot more to say, but that’s really what my newsletter is for! Sign up today! My newsletter is 100% FREE, and risk free. You can cancel at anytime, but why would you want too!

My newsletter is focused on showcasing stocks to you that I think you stand a good chance at making good profits from fast, and we always throw in Trading Tips and Tricks, Trading Strategies, and how we personally think you can maximize your profits with any given profile we show you.

Check it out today for FREE and let us know what you think! All you need to do is use any of the boxes on the website and enter a valid email address, and you will be on your way to learning new and exciting ways to profit in the stock market.

Feb

05

2010

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