Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM EST, Wednesday, May 9: The
web calls my sickness acute bronchitis and offers no magic cures, except rest,
chicken soup and patience. Yuch. This gives boredom a whole new meaning.
largest mining company is BHP. It's
a gigantic company with a market cap of $152 billion. In a client report dated
last Friday, Merrill Lynch analysts Vicky Binns and Duncan Hay said BHP could
deliver some handsome returns to a private equity bidder as a result of strong
demand from China, India and other emerging economies.
They posited (according
to the New York Times story) that a private equity buyer could break
up the company and re-sell it on the stock market for $167 billion. Such a move,
they said, could deliver a 34 percent rate of return, well over the typical
20 percent that the buyout shops typically look for. It is a company with
low cost, long life, diversified assets with growth that many of its competitors
envy, they said.
I like the attention
Australian miners are getting here.
is going nuts over stocks: From an April 30
issue of China Daily:
a piece of the country's bullish stock market has become something of a national
passion, and the only people not excited about the situation are the many
bosses out there struggling to keep their employees focused on their work
rather than their portfolios.
So far, the
stock market has climbed more than 40 percent this year, building on last
year's meteoric 130 percent rise. Not surprisingly, people from across the
country have been trying to get a piece.
More than 11
million new trading accounts have been opened since the beginning of this
year, or twice the total number opened last year, according to the China Securities
Depository and Clearing Co Ltd.
there are now 90 million trading accounts in China, accounting for 7 percent
of the country's 1.3 billion population.
ranks of investors are not just pouring money into the market they are diverting
an increasing amount of energy to it.
be a shame to miss out on such bullish conditions after so many years of a
bear market," said an editor at a leading news Web portal in Beijing,
who requested to remain anonymous.
have become virtual trading floors during trading hours - 9:30 am-11:30 am
and then 1 pm-3 pm - some local newspapers have reported.
People can be
seen exchanging trading tips and stock picks over instant messaging programs
like MSN and QQ during trading hours. Their work often suffers as a result.
And in some
places of business, it is now considered poor form to disturb a staff member
or government office worker during trading hours, newspapers have reported.
has become more acute with every increase in the market," said Tang Liang,
who runs a small trading company in Hangzhou, the capital city of East China's
But the young
boss said he was taking a relatively relaxed attitude toward the problem.
my staff from diverting too much energy to stock trading during working hours,"
the manager said.
must see this musical: It runs until July 15.
I saw it last night. I was blown away.
You read about it here.
You get tickets here.
The star is Audra McDonald, who is beyond fabulous. You will rarely see talent
like Ms. McDonald. She is supported by a strong cast, which includes John Cullum
and Steve Kazee. Here's a writeup:
In the middle
of a heat wave in 1930's Texas, when everyone is longing for rain, or a breeze,
Lizzie Curry (McDonald) is on the verge of becoming a hopeless old maid. Her
wit, intelligence and skills as a homemaker can't make up for the fact that
she can't find true love. Even the town sheriff, for whom she harbors a secret
yen, won't take a chance. However, when a charismatic rainmaker named Starbuck
(Kazee) enters the town and her family's life, Lizzie's world is turned upside
Award winner Audra McDonald returns to the Broadway stage having most recently
won a Tony® for her performance in the 2004 Broadway revival of A Raisin
in the Sun. Broadway veteran and two-time Tony® Award winner John Cullum
returns to Roundabout as "H. C. Curry" having last starred in Arthur
Miller's All My Sons during the 1996-1997 season. Steve Kazee returns to the
Broadway stage after starring as Sir Lancelot in Monty Python's Spamalot.
Lonny Price returns to Roundabout Theatre Company having recently directed
the 2003 Broadway revival of "Master Harold"...and the boys starring
The cast also
features Chris Butler as Noah, Carla Duren as Snookie, Christopher Innvar
as File, Bobby Steggert as Jimmy. The full cast includes Elisa Van Duyne,
Colleen Fitzpatrick, Valisia Lekae Little, Darius Nichols, Mamie Parris, Devin
Richards, Michael Scott, Will Swenson, Matt Wall and Betsy Wolfe.
technology predictions for 2007. One of my favorite IT (computer)
writers is Robert X. Cringely. Here are his just-released five predictions for
to go into the futurist business. It's where all the money is. And if you
turn out to be wrong, there's a chance your clients will die before they find
out. So I consulted The Oracle (no, not that Oracle), gazed into my Magic
8-Ball, and sifted through My Pet Goat's entrails. Here's what I saw:
1. Google will
split itself into two divisions, one good and one evil, who then will battle
for Web domination. I'm putting my money on evil -- they always have the cooler
2. Dell will
go on a major enterprise acquisition spree. But instead of buying up companies
they'll just purchase Larry Ellison. It's so much faster.
3. Apple will
announce the iShield, a portable force field that protects its owner from
exterior threats -- like SEC investigations. Unfortunately it will only work
for Steve Jobs.
4. In an effort
to halt the Googlization of everything, two major Web rivals (MSN and Yahoo?
AOL and MySpace? Amazon and eBay?) will swallow hard and merge their operations.
The process will look like a train wreck in slow motion. There will be no
5. The White
House will locate printouts of the 5 million emails it has misplaced -- stuffed
inside mattresses at the DC Madam's digs. Investigators will be allowed to
view a list of the messages, but reading them will cost $275 an hour with
a 90-minute minimum.
figure: In the United States, deaf people have safer driving
records than hearing people. Could that be because they're not on their cellphones
profitable is the hedge fund / private equity business? Last week's
gala dinner for Robin Hood Foundation raised an eye-popping $71 million, up
32% from the previous year. Most charities are lucky if they raise $1 million
from their annual dinners. What's even more amazing about Robin Hood is that
the entire running expenses and the tab for the dinner are paid for by
the Robin Hood's board of directors. 100% of the monies raised go into the Foundation's
programs -- which target poverty in New York City. Repeat: there are no administrative
expenses taken out of the monies raised.
hedgie went. His eyes are still popping:
+ The board announced it wanted to raise $30 million to start a teacher training
institute. One fellow immediately stood up and pledged $10 million, followed
by 23 people who each pledged $1 million, followed by 25 who each gave $250,000.
+ Two people each
paid $400,000 to sing a song with Aerosmith, the night's entertainment.
+ An all-expenses-paid trip to the Olympics in China that included being with
the Today host Matt Lauer and meeting a member of the United
States womens soccer team went for $2.2 million.
has developed unique ways of measuring the success of its programs. Because
of their quantitative nature, they appeal to hedgies many of whom are "quants"
themselves. Clearly, I'm impressed.
a defibrillator, part 2: Reader Ron Manuel writes,
I took the same training as your son (CPR/AED) shortly after one of our partners
died at home while exercising. We purchased AEDs ((Automated External Defibrillators)
for the workplace and I'm considering purchasing one for home.
Here's the problem: If I'm exercising at home in the exercise room (garage)
by myself and keel over, having an AED doesn't help. The AED will only help
if I'm with someone else that sees me in need of resuscitation, knows there
is an AED, and knows how to use it.
I think I'll get one anyway, and just realize the limitations.
Philips HeartStart Home Defibrillator (AED)
is the one to get. It costs $1,150.
Our wonderful children -- part 1
A new teacher was trying to make use of her
She started her
class by saying, "Everyone who thinks they're stupid, stand up!"
After a few seconds, Little Davie stood up. The teacher said,
"Do you think
you're stupid, Little Davie?"
"No, ma'am, but I hate to see you standing there all by yourself!"
wonderful children -- part 2
Little Timmy watched, fascinated, as his mother smoothed cold cream
on her face.
"Why do you
do that, mommy?" he asked.
myself beautiful," said his mother, who then began removing the cream with
matter?" asked Little Timmy. "Giving up?"
This column is about my personal search
for the perfect investment. I don't give investment advice. For that you have
to be registered with regulatory authorities, which I am not. I am a reporter
and an investor. I make my daily column -- Monday through Friday -- freely available
for three reasons: Writing is good for sorting things out in my brain. Second,
the column is research for a book I'm writing called "In Search of the
Perfect Investment." Third, I encourage my readers to send me their
ideas, concerns and experiences. That way we can all learn together. My email
address is .
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