For a moment, I thought the portfolio covered! I was wrong of course, if we compared to the previous week. FJ Benjamin moved below the 40 cents mark. I have reasons to believe that this is due mainly to Peter Lim making an offer for Thomson Medical Center. If he has made a bid for the pregnancy-centric medical center and at such a premium, he must definitely find some way to cough up the cash as well. Unless he already had earmarked the money for his latest acquisition, after his failed attempt to take over Liverpool FC.
During the week, I purchased a few more lots of C&O Pharmaceutical. That makes the amount of capital from my salaries injected to the stock market, to the $20,000 mark. However, I took too much a time to consider my purchase as I was deliberating whether to sell Asiatic or Stratech to make my holdings leaner. I was looking at either OSIM or NOL the day that the market correct on Wednesday but I did not have the courage the key the buy order. Fortune favors the brave.
Macro Economic Issues And War
For those who have been catching up with the news, two significant headlines were the Irish government seeking a bailout from the IMF as well as North Korea lobbing a few artillery shells at an isolated South Korean island. In my opinion, both headlines have almost no impact on the stock market. For Ireland, they do have enough money to keep itself running at least next year. That its finance minister announce a requirement for bailout, is more pre-emptive than indicative of the troubles that ails the once booming economy. It should be noted that there are many options available to Ireland but some of the IMF sponsored ones need Ireland to increase its corporate tax rate. This will cause a flight of corporations from the island country and seems to me a evil plot by the IMF.
As for North Korea's histrionics, they distract most of us who are already bothered by how QE2 will affect the stock market or by slasher teen gangs in Singapore. The STI is on course for slight gains from the start of the year as I had hope. We should see more action in the month of December as more investors, especially the larger ones, gear up for 2011.