Cramer: Economy Will ‘Shock to the Upside’
Finance December 6th, 2009
That may fly in the face of almost every other media pronouncement, but the news coming from American stalwarts Ford Motor [F 10.96 0.68 (+6.61%) ] and Boeing [BA 58.05 1.87 (+3.33%) ] is hard to ignore. Both stocks hit 52-week highs today, and that’s because business is good.
Consider Ford, once one of the ailing Detroit Big Three. Thanks to CEO Alan Mulally, Cramer said, this company has seen the best turnaround since Boeing – and Mulally was responsible for that, too.
Just look at the numbers: December registered a 42% increase in sales, while there was a total vehicle increase of 33%. And that came despite talk of how Cash for Clunkers would steal future business. Think of the money Ford must be making now that it’s no longer slashing prices to shed excess inventory. Cramer said he likes both Ford common stock and the preferred shares.
Then there’s Boeing. The company is the best manufacturer in its class, Cramer said, the dominant play in its industry, and new orders are flooding in. Plus, the long-awaited 787 Dreamliner has finally taken flight.
Aerospace and autos are the second- and third-biggest economic drivers for the US, and they look to be in great shape. What’s number one? Consumer spending, which given this past holiday season is doing just as well. Cramer is expecting blowout numbers from just about every major player in the sector: J. Crew Group [JCG 45.05 0.88 (+1.99%) ] to Sears Holdings [SHLD 87.20 3.78 (+4.53%) ], Macy’s [M 16.85 -0.21 (-1.23%) ] to Saks [SKS 7.17 0.37 (+5.44%) ].
Of course, both the press and the pundits seem to have missed all this. They’ve even kept many retail investors from taking part in the market’s big moves since last March. But their total lack of understanding is the reason the economy is not just going to surprise everyone, Cramer said, “but shock to the upside.”
“You want to participate in the great rebound?” Cramer asked viewers. “Bet on the best we have” – Ford and Boeing.
Indonesian pawnshops company (Pegadaian) Publish Obligation USD 2 Trillion
Company Info December 6th, 2009
Pegadaian plans to issue bonds amounting to Rp 2 trillion in 2010. Funds of the debt issuance will be used for financing the pursuit of the target earnings in 2010 amounted to Rp 75.85 trillion.
“The need of funds to pursue the turnover in 2010 was about Rp 7 trillion. Approximately USD 2 trillion from bond issuance plan,” said Director of Finance on the sidelines Pawnshop Budiyanto year-end press conference at the 2009 Mining Office, Jalan Kramat Raya, Jakarta, Tuesday (5 / 1 / 2009).
According to him, the plan was a new bond issue will be discussed in March 2010 due to still waiting for the results of audits of financial statements December 31, 2009.
“When are we talking about the new audit underwriters who was, how the publishing and so forth,” he said.
In addition to issuing bonds, the red plate company also plans to seek bank loans of Rp 4 trillion. According to him, there were four banks that offer these loans.
“What we’ve proposed to the Bank Mandiri, BRI, BNI and BCA,” he explained.
While remaining funding needs USD 1 trillion in 2010, he added, will be sought through the financial markets.
Regarding investment, the year 2010 Pawnshops mengangarkan fund of Rp 170 billion to be taken from the company’s retained earnings and funds remaining from last year’s in-carry over.
On the same occasion, Director Pawnshop Chandra Gunawan said, related to the proposed bill Pergadaian Capital Market Supervisory Agency and Financial Institution (Bapepam-LK), Mining and welcomes it.
However, there is a concern felt by the Pawnshop, namely the entry of foreign firms into the domestic pawn industry.
“If the (foreign) entry with the same mission to help the little people, it does not matter. But if the mission’s first profit trouble,” he added.
Even so, admitted his side are ready to compete with other companies if the bill is to allow private entry in a pawn industry.
According to Chandra, the experience already Perum Pegadaian decades will not be affected by the new company which will be entered.
“Our experience higher dipikiran so enggak necessary, do not worry lah. But do not let the bill because it was so easy to make a pawn company.’ll Have anyone who could make the company money lien, but not until the mission,” he said.
Finance minister said about Century Bank
Bank December 6th, 2009
Finance Minister Sri Mulyani said a number of issues related to government measures to save the Bank Century.
Sri Mulyani at a press conference at the Finance Ministry building in Jakarta to respond to the investigation of audit Audit Agency (BPK) associated bailout Century Bank.
In his explanation, Sri Mulyani said the government back to save the Bank Century because it was feared would affect systemic for national banks.
“condition at that moment in November 2008, the global financial crisis, the closure of Century Bank in accordance with common sense could cause a chain effect.”
According to Sri Mulyani, the closure of Century Bank can also lead to rush or lose the trust of customers of national banks”will occur rush or queue not only at Century Bank, but also other banks, there are 23 other banks and a number of BPR that had similar problems with Bank Century”.
The experience of Indonesia, which had hit the same crisis in 1997 was also a consideration of the government to save the Bank Century.
A number of indicators
Finance Minister Sri Mulyani also mentioned a number of indicators that the reference of the Committee of Financial Sector Stability (KKSK) which was chaired by Sri Mulyani in making decisions.
Sri Mulyani said it noticed in detail the developments related to the macroeconomic conditions of the world at that time.
Financial markets experiencing strong pressure due to the collapse of international financial institutions such as Lehman Brothers and AIG.
“The condition of the macro as the last months of 2008 was under pressure and there is disruption of banking and financial system that is estimated to have the real potential of creating a deterioration of the situation and could potentially create instability,” he said.
Some of the underlying background rescue Century Bank is:
The first is the strong pressure from the financial market collapse of financial institutions such as Lehman Brothers International, AIG, and others.
At that time according to Sri Mulyani, Indonesia Stock Exchange plummeted by 50%
“The world capital markets have seen pressure from stock index. IHSG in January 2008 reached 2830, but in November fell to 1155, the decline of more than 50%. And we made a suspension of capital markets several times” Mulyani said.
At that time the value of foreign exchange reserves within 3 months fell from U.S. $ 59.45 billion to U.S. $ 51.64 billion.
In addition, the exchange rate also depreciates in the Rp9.800 per U.S. dollar in January to Rp 12,100 per U.S. dollar.
Sri Mulyani also said the policy of Century Bank is right to step measured in accordance with the principles of legislation, the authority in determining the policies and decisions, and have a useful principle and responsible.
