Loot from Marina Bay Sands

Went back to the casino at Marina Bay Sands today. Still had a voucher for about $37 from last visit on Jan 2. Thank goodness won big -- by my standards -- and so have completely recovered from the last loss, with some fresh capital left over for the next outing. :8)

What I won today. Below is the machine which gave me the best pay-out. I didn't realise I was making a $5 bet: just as well or I won't have made the bet. Better still, I struck lucky with that first bet!

Played 4 machines

On Jan 2, played 1st machine (above) at Marina Bay Sands which paid very well. I wanted to reach the 10000 credit mark but neve made it.


So, after an hour of nearing my mark and then moved away, I tried my luck elsewhere, starting with Little Emperor. Altho I did better than all beside me, I still lost some of my winnings from Machine 1.

Then I moved to Machine 3, the Glitz machine that paid so well on my Dec 23 visit.

To my horror, I discovered when I was on a losing streak that what i thought was a 60 cents bet (from my previous visit) was actually a $1.50 bet.

Being on a losing streak, I lost the balance of my money: down by $280 in about 3 hours.

Should have gone home but decided to go to ATM and withdrew $200 and went back to the Bank Robber machine which gave me so much play back in July. Lost about $70 and decided to call it quits ... for the time being anyway.

Hungry, tired and unable to concentrate. Best to go home...

Casino notes

Paid levy for Marina Bay Sands casino for one whole year yesterday. $2000

Lost about $330 after 4 hours of play.

Carpark cost came to $13 but needn't pay as I've got free parking.

Neither a saver nor a spender be

Crude oil prices have again risen to around USD90 a barrel, almost without much notice or comment, except when prices are raised again and again at the petrol stations, as happened yet again today when the last rise is still in my consciousness.
So I searched for some remarks I sent to friends a couple of years ago when oil prices were at USD114 and no less than Goldman Sachs was forecasting oil at USD200 a barrel!

As it turned out GS was dead wrong but as someone once said, even a stopped clock is right twice a day. So perhaps it's time to share my past remarks with a wider audience.

Below was what i said, with slight modification.

Even as the oil price rises, Singaporeans are somewhat insulated because of the strong Sing dollar which is good

• as we import most, if not, all of the stuff we consume from Ribena to rice. So we pay less and get the same or more, depending on whether what we consume has gone up in price in the exporting countries

• when GIC and Temasek want to invest massive amounts of tax-payers' money abroad in an uncertain market, our super S$ can buy more assets when used overseas

• as super-rich foreigners attracted to buy Singapore assets will have to pay more, instead of buying up our country and our heirlooms on the cheap.

• as foreigners who come here to stay, study, seek medical services or pleasure etc, have to pay more in terms of their own currency, so that they will have a higher hurdle to cross and not price out all Singaporeans

• as we can have even cheaper foreign labour (or even talents) because the wages we pay when converted into their home currency will be more

However, pity those in Singapore who

• saved more, spent less and eschewed going into debt. What’s their reward? Deposit rates have always made up for inflation, according to a friend who pulled an interest vs inflation rate chart going back 30 years. 2007 was the only time where the inflation rate had outpaced deposit rates. Money on deposit is now losing 5% per annum in value and even worse when measured against property prices.

• have invested abroad and now see both their foreign currency deposits and income decimated by the strong S$.

So what’s the solution for the squirrel Singaporean? My answer:

• Get paid in S$ but work abroad to get a better bang for your wages

• Retain funds already sent offshore to take advantage of interest rate differentials, though the AUD is probably the only unit that pays decently today

• Spend all your loose change, because with inflation at some 3%, bank deposit rate 0.25 to 0.75% for the small saver, and oil prices at USD90, better splurge today and diet tomorrow

• Spend more time and money overseas, especially where your money gives you a Singapore standard of living at half the price or less. Time was the lights work, the taps work and the telephone works – seemingly only in Singapore. But which large city today within a six-hour flight time or less from Singapore doesn’t offer the same but with lower price tags? This is made more attractive when return air or coach fares could cost less than a long taxi journey in Singapore!

Time to watch the oil price gyration again and see if GS forecast made in 2008 may come true in 2011!

It's a baaaaad thing: SGX offer for ASX

as Suze Orman, internationally acclaimed personal finance expert, will say.


And I will echo her and more.

Imagine, the Singapore Exchange is going into $4.5 billion worth of debt ( the sum total of what it earned in the past decade since its listing doesn’t amount to anything like this!) and also issuing the equivalent of 60% of its share capital base to buy into an exchange that’s about to lose its monopoly!

Chi-X Global Inc. is expected to gain clearance to form a rival exchange in Australia possibly as early as the first quarter of 2011. That will create a competitor that is likely to eat away at ASX’s trading volumes.

SGX’s takeover attempt reflects a company that has lost its way and is grabbing at seaweed to remain relevant.

And this is what happens when the stock market senses SGX’s panic in the dowry it wants to give to its dowdy Down Under bride.

Players savaged SGX shares today when they resumed trading after the official announcement of the takeover. Down 6% in one day!

With such a huge debt — which needs to be serviced – how is SGX going to continue with its generous dividend payout? Especially when it has 60% more shares to service?

Add that to the huge overhang that materialises when suddenly there are so many more SGX shares available to the market.

And the mauling might well continue unless, unless a rival bidder arrives.

And of cos, that recovery will depend on whether the new bidder will go for the hand of ASX or SGX!

If the former, SGX would be left truly out in the cold, after having served as the agent provocateur in winkling out the bid. And the bidder could well be the Hongkong Stock Exchange – even though today its spokesman Henry Law said:

“HKEx will not pursue alliances, partnerships or other relationships purely for investment gains. HKEx will consider selected opportunities in the areas where it can enhance its capability and strengths in technology, business and services.”

But it is early days yet. And there could be many a slip betwixt the cup and Mr Magnus Bocker’s lips. He could have biten off more than he can chew!

Make it 24/7 lah, SGX

Like it or not, I think the Singapore Exchange will be extending its trading hours, sooner or later. This despite the fuss remisiers and some market players are making in response to a reported mass dialgoue between SGX and its stakeholders earlier this month concerning the scrapping of the current lunch break, to make it one continuous session from opening to close.

I say go for it, SGX, no matter what the remisiers n like-minded but parochial thinking people say.

After all, didn't all sorts of dire nay-saying abound when the SGX predecessors decided to reopen the stock market on the 3rd day of Chinese New Year (in line with all other businesses), when it was the tradition for brokers to go back only on the fourth day? And despite all the gloom and doom, our stock market has gone from strength to strength since then.

In fact, why stop at scrapping the lunch break? SGX, under the new CEO, should be bolder. Why not make it 24/7 trading? That way anyone in the world can take a punt on the SGX in their own time zone. Also, no need to trouble the tradition-bound remisiers.

Since our SGX system is an order driven, order matching system and since any investor can trade on SGX via the Internet, I don’t see why the system shouldn’t be used to the max, instead of closing down for week-ends and the better part of every day. This is especially since SGX is going to invest another $250m to supe up the system even more…

As for the k-p-k-b behaviour, these grousers should note that since Jan 11, SGX has already extended its derivatives trading hours till 1am Singapore time the following day for contracts with T-plus-one sessions to accommodate growing international demand for Asian equity derivatives.

The longer trading hours enable traders to respond to market movements and manage their risks across global time zones, including after the close of European equity markets.


Contracts which enjoy the extended trading hours include the Nikkei 225, MSCI Taiwan, MSCI Singapore and S&P CNX Nifty (India) index futures.

With longer, if not 24/7, trading hours, volume is bound to rise, though by how much no one can say till it is put to the test. Also, vloume would depend on what products are available on SGX equities platform.
Asian exchanges, including Sout Korea and Taiwan, that have dropped their lunch-time trading breaks have seen daily volumes rise between 8 per cent and 15 per cent, observers say.

Critics of extended trading hours point to China and Hongkong which have shorter trading hours than Singapore but are among markets in the region enjoying the highest volumes.

Such critics however overlook the fact that China and Hongkong have a far larger critical mass of investors than most of the markets in the region. And markets that have longer hours and desirable products will take nibbles from markets with the critical mass but shorter trading hours. Geddit?

Fortis is merely trying to bait Khazanah Nasional

In my view, Fortis' offer -- a mere two-cent higher than Khazanah Nasional offer of $3.78 -- for Parkway Holdings is more to block Khazanah's ability to buy on-market than anything else.

That way, it is buying time for itself and making sure that Parkway has to up its offer or else let it have control of Parkway cheap.

I don't think Fortis intends to enter into a bidding war with Khazanah.

So the tussle which everyone is anticipating may not materialise.

Investors should remember that companies taken over after a tussle usually sucks under the new owner. Ditto for those when the suitors walk away.

A takeover may be a good thing for short term flippers and day traders but often not for the long term investors who are left to pick up the pieces which ever side wins! Or when the situation returns to status qyuo ante. Because even then, they are left to foot their share of the advisory bill for the takeover.