Month: September 2013


Huge rise in Shanghai property loans

September 30, 2013

Property Loans

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Property loans extended to Shanghai residents from January to the end of August reached 72.8 billion yuan ($11.8 billion), four times that of 2012, the Peoples Bank of Chinas Shanghai head office said on Monday.

In August alone, the combined value of property loans to Shanghai residents was 8.29 billion yuan, 0.9 billion yuan more than for July and 4.8 billion yuan more than in August 2012.

Analysts said intensive trading of apartments in Shanghai since April pushed up demand for personal house loans.

The fast growth in property loans is not expected to last as quotas for commercial banks for the loan category may be used up soon, analysts said.


Ireland "bad bank" to sell 400 mln euro property portfolios

September 30, 2013

Property Loans

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DUBLIN, Sept 24 (Reuters) – Irelands National Asset
Management Agency (NAMA) plans to sell two property portfolios
worth up to 400 million euros ($540 million) in the coming
weeks, the chairman of the the countrys so-called bad bank said
on Tuesday.

State-owned NAMA, one of the worlds biggest property groups
having purged local banks of 74 billion euros of risky loans,
has sold most of its stock to date in Britain but is becoming
more active in Ireland where property prices are stabilising.

The agency sold its first portfolio of Irish commercial
property loans in May and NAMA chairman Frank Daly predicted
that the pace of sales activity in the domestic market, where
over half of its properties are located, will pick up
perceptibly in the coming months.

The sales would be an encouraging both for Irish public
finances, which funded the 32 billion euros NAMA paid for the
loans, as well as providing encouragement on a property
stabilisation which is vital for the Irish economy to begin to
recover.

We will be bringing two portfolios, prime retail and
residential as well as offices, with an estimated value of 350
to 400 million euros, to the market over the coming weeks, Daly
said in a speech published on NAMAs website

There seems to be an emerging view that the market in
general is stabilising and in particular areas is showing signs
of recovery. In addition, the nature of investors has matured.
There are an increasing number of investors in the market, such
as pension funds and real estate investment trusts.

Daly added that NAMA has generated 13.5 billion euros in
cash, including 9 billion from the sale of assets and loans,
since it began buying the banks loan books at a discount in
2010, up from the over 12 billion it had generated in June.


Sunderland FC owner Short raising €1bn for Irish bank assets

September 30, 2013

Property Loans

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Kildare Partners, the Lone Star fund founders first foray back into private equity in five years, aspires to complete a debut Irish deal by early 2014.

Shorts fund is targeting commercial and residential property buys here on a major scale. A sizeable chunk of its firepower is trained on buying Nama, IBRC and other distressed property loans and assets here.

Best known outside of the business arena as the man who fired Roy Keane at Sunderland Football Club, Short is an Irish passport holder and has been looking at plays in Ireland for some time. He has close links to Ireland and a EUR2m home in Michael Smurfits Kildare Club.

No other Irish investor money is involved in Kildare at present.

While the aim is to buy across Europe, the early stage focus will be Ireland and Britain, the two territories where the partners involved have most experience.

The Irish office is in the process of being set up, headed by former Investec director and EBS Finance boss Emer Finnan, who was handpicked for the job by Short. Around half a dozen people will be recruited for the Dublin office, its understood.

It will see it come into direct competition with Lone Star, the gigantic fund Short founded, as Kildare goes up against it and other massive bidders like Apollo and Patron. Lone Star bought a EUR675m face- value AIB portfolio last year.

Finnan is a partner in the fund, which is headquartered in London, as well as MD of the Irish office.

Kildare Partners has already met with Nama, the IBRC and other Irish market distressed- loan-selling banks.

Nama is expected to bring another Project Aspen-calibre loan book to market pre-Christmas, some sources say. Aspen, an EUR800m face-value book, was sold earlier this year.

The IBRC liquidators are to sell what they can of its loans this year. Data rooms for its property loan books have yet to open.

Namas Project Club – a EUR230m book of loans related to developer Eamonn Duignan – is now live again and loans related to Cork developer Michael OFlynn are tipped to be sold soon.

Bank of Ireland is in the process of selling loans related to its British business banking and corporate banking activities there, the bank confirmed.

Distressed loan sale processes from AIB, Permanent TSB, Ulster Bank, Lloyds, Danske and KBC are likely in the near term.

From Independence, Missouri, originally, Short co-founded Lone Star, which he and Texan Irish moneybags John Grayken built into a EUR25bn force. He exited it in 2007.

Low-profile and publicity averse, Short is based in Dallas, Texas.

Sunday Independent


Las Vegas business a finalist for crowdfunding contest

September 30, 2013

Business

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Jennifer Baumgartner faces similar issues that most new small-business owners have to deal with, especially the need for financing.

Baumgartner, owner of Las Vegas-based The Cookie Bar, has been slowly building her gourmet food business over the past year while working a full-time job. She funded her startup with savings and with her profits but now needs additional capital to expand.

But instead of a bank loan, Baumgartner is looking to raise $10,000 online through Fundable, a crowdfunding website. Crowdfunding is a collective effort of individuals who network and pool their money, usually online to support efforts initiated by other people or organizations.

“I’m trying to raise money to open a small store on Pecos and Flamingo,” Baumgartner said. “Right now we are a mobile business with a website … producing packages for special events.”

Currently, Baumgartner and her mother, Wendy, run The Cookie Bar out of their Las Vegas home and bake their unique alcohol-infused and nonalcoholic cookies and treats at a local kitchen.

“We share a very small kitchen with other bakers,” Baumgartner said. “We started the business about a year ago and we are still getting our name out at events.”

To raise the money she needs to open her retail location, Baumgartner took a chance using crowdfunding to raise the financing she needs. She also decided to enter The Cookie Bar into Fundable’s money raising contest, giving her an opportunity to take home an extra $10,000.

Out of more than 125 small businesses nationwide that applied, The Cookie Bar is one of nine finalists and the only Las Vegas-based business competing for that cash prize. The contest is supported by The National Association for the Self-Employed, NASE, the Small Business amp;Entrepreneurship Council (SBE Council), and Fundable.

“We just entered it hoping for the best, now we are a finalist,” she said.

Baumgartner’s deadline to raise $10,000 is Sept. 20. The finalists have been given 30 days to meet their individual fundraising goal through the Fundable platform. The first company to reach their goal receives the cash prize.

So far, Baumgartner has raised $575 from six backers. Her business is the only food-based company in the contest.

Crowdfunding has been successful for other food concepts, including Grapevine Craft Brewery who raised $61,673 from 200 backers to help build a brewery in Grapevine, Texas. The company’s initial goal was $50,000.

How Fundable works is first The Cookie Bar or any business creates an online company profile, which includes a video profile, followed by offering rewards or equity in exchange for funding. Finally each company promotes their fundraiser and gathers commitments.

“If we don’t win, we still have the option of going the business loan route,” Baumgartner said.

Other participants include Local Lux, developers of a smartphone app for hyper-local shopping. The Chicago-based business has raised $1,610 of its $5,000 goal. Global Cancer Diagnostics developed a blood test to diagnose lung cancer at its earliest stage. The Tempe, Ariz. -based firm has raised $350 of its $10,000 goal.

“We are thrilled to offer this opportunity for these businesses to raise capital through crowdfunding, while providing additional cash prize of $10,000 to the business that reaches their fundraising goal. Crowdfunding is not only a creative, but also a practical way for a small business to grow,” Karen Kerrigan, president and CEO of the SBE Council, said in a joint statement with Katie Vlietstra, director of government affairs with NASE, and Eric Corsi, CEO of Fundable.


RBS appeals over court ruling of misrepresentation

September 29, 2013

Property Loans

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In a Court of Session judgement in June this year, Lord Malcolm commented that the banks recovery action against developers Ian McDonald and Joe ODonnell was a case study of the causes and consequences of the property crash, and ruled against the bank.

RBS had backed the developers with a pound;1.65 million loan in 2007 to buy a piece of land in Greenock – which was sold off three years later for just pound;65,000.

The judgement revealed that following the crash, the RBS credit division instructed that all property loans needed at least 30% security, and that the critical valuations of sites appeared to vary wildly depending on which firm of surveyors was instructed.

The two developers were persuaded to sign a pound;300,000 personal guarantee in March 2009 on the basis of an updated site valuation produced by leading Scottish surveyors Ryden, which the judge said appeared designed to ensure that the end result met the figure previously promised in discussions between bank and surveyor.

Lord Malcolm said the borrowers would not have signed the guarantee if they had known that the Ryden revaluation could not be relied upon as a professional opinion from a large and respected firm of surveyors.

He commented: It would appear that vastly differing valuations of the site were obtainable depending upon whatever assumptions the valuer was asked to, or chose to adopt.

Ryden however demonstrated that it had warned the bank that it had been instructed to produce only a desktop revaluation for a pound;500 fee, not a full pound;2500 valuation.

In its grounds of appeal, RBS says its valuations were not misrepresentations but simply passing on information…provided to the pursuer by professional advisers.

The bank denies that it had a duty to alert the developers to a letter from Ryden warning that its valuation was for indicative purposes only, and denies that the defenders suffered any loss as a result.

The banking giant faces paying the defendants costs and also a counter-claim for interest.


Penny Stocks on the Move: Mitsubishi Estate Co Ltd (ADR)(OTCMKTS:MITEY …

September 29, 2013

Personal Financial Services

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Lewes, Delaware- August 19, 2013 (Tech Sonian) LeadingStockAlerts is a financial marketing firm that specializes in assisting the underserved small cap and micro-cap stock community. Out Today’s Focus is on: Mitsubishi Estate Co Ltd (ADR)(OTCMKTS:MITEY), United Overseas Bank Ltd (ADR)(OTCMKTS:UOVEY), TNI BIOTECH INC (OTCMKTS:TNIB), LONZA GROUP AG (OTCMKTS:LZAGY)

Mitsubishi Estate Co Ltd (ADR)(OTCMKTS:MITEY) opened its shares at the price of $25.58 for the day. Its closing price was $25.66 after gaining +0.82% for the day. The company traded with the total volume of 10,778.00 million shares, while its average trading volume remained 12,186.00 shares. The beta of MITEY stands at1.06.

Mitsubishi Estate Company, Limited is a real estate company. Building segment develops, leases and manages buildings, operates parking lots and the heat supply business.

Why Should Investors Buy MITEY After The Recent Gain? Just Go Here and Find Out

United Overseas Bank Ltd (ADR)(OTCMKTS:UOVEY) percentage change plunged -0.44% to close at $33.80 with the total traded volume of 27,142.00shares, and average volume of 24,417.00 shares. The 52 week range of the stock remained $29.02 $35.97, while its day lowest price was $33.78 and it hit its day highest price at $34.10.

United Overseas Bank Limited (UOB) is engaged in the business banking. UOB provides a range of financial services including personal financial services, wealth management, private banking.

Has UOVEY Found The Bottom and Ready To Move Up? Find Out Here

TNI BIOTECH INC (OTCMKTS:TNIB) started its trading session with the price of $1.85 and closed at $1.84 by scoring -43.66%. TNIB’s stocks traded with total volume of 82,835.00 shares, while the average trading volume remained 30,066.00 shares. The beta of TNIB stands at 7.85. Day range of the stock was $1.67 -$1.90.

TNI BioTech, Inc., a specialty pharmaceutical company, focuses on developing and commercializing therapeutic products for the treatment of cancer.

Has TNIB Found The Bottom And Ready To Gain Momentum? Find Out Here

LONZA GROUP AG (OTCMKTS:LZAGY) ended its day with the gain of +0.27% and closed at the price of $7.51 after opening at $7.45. Stock traded during its last trading session with the total volume of 37,825.00 shares, as compared to its average volume of 69,475.00 shares.

Lonza Group AG supplies products and services to the pharmaceutical and biotechnology, healthcare, and life-science industries worldwide.

Will LZAGY Continue To Move Higher? Find Out Here

About LeadingStockAlerts:

LeadingStockAlertsis a financial marketing firm that specializes in assisting the underserved small cap and micro-cap stock community.

Our site has been the clear choice for today’s investors and day-traders. As one of the internet’s premiere financial destinations, we offer the investment community some of the market’s leading emerging opportunities. Using a balanced combination of industry experience and high-tech offerings, this site keeps you ahead of the curve and ahead of the bell.

Disclaimer:

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT OR WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Read Full Disclaimer at: http://leadingstockalerts.com/disclaimer/


Nationwide under fire for lending £30m to Heron Tower project

September 29, 2013

Property Loans

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Nationwide is thought to have taken a back seat in the negotiations with Ronson and the other shareholders.

Instead talks are being led by Wells Fargo, which is the main lender.

Insiders at Nationwide last night insisted that it will ‘not lose a penny’ on the loan and said it will get all its money back if the 46 story, £500m tower is liquidated and sold off.

The firm, which made the loan to Ronson before the financial crisis 2007, also added that commercial property lending represents just 5 per cent of its portfolio. But the news that it used money from its members to help finance the high risk Heron Tower project has infuriated consumer groups.

Critics said the involvement of the Swindon-based savings and homeloans specialist in the project alongside foreign banks and Middle East royalty looks incongruous.

Simon Rose from campaign group Save Our Savers said: ‘Given that Nationwide prides itself on being a mutually-owned building society and not a bank, many of its members will be surprised that so much of their money has gone, not to support home-owners, but a rather riskier property company.’

But last night Nationwide hit back at the criticism. A spokesman said: ‘This does not present any risk to our balance sheet whatsoever. Nationwide is lending significant funds to ordinary families and last year helped over 42,000 first time buyers to buy their own home.’

Nationwide’s impairments on bad commercial property loans doubled last year to £493m.

In its company results it said this was due to the ‘continuation of negative sentiment toward commercial real estate and the uncertainty surrounding the economic outlook in the UK.

It added that there was ‘no evidence of recovery in tenant demand or capital values on the horizon.’

The Heron Tower, situated in the heart of the Square Mile and completed in 2011, has become a high profile example of this.

Nationwide would not be the first mutual to get its fingers burnt by commercial property.

Co-op is grappling with a £1.5bn blackhole in its finances, largely because it failed to put aside enough money to cover losses on bad commercial property loans made by Britannia. The Co-op took over Britannia in 2009.

Nationwide has also been ordered by the Bank of England to fill a shortfall in its own capital cushion.


Penny Stocks Intraday Alert – Axa SA (ADR) (OTCMKTS:AXAHY), AIA Group Ltd …

September 29, 2013

Personal Financial Services

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Lewes, DE — (SBWIRE) — 08/20/2013 — LeadingStockAlerts is a financial marketing firm that specializes in assisting the underserved small cap and micro-cap stock community. Out Today’s Focus is on: Axa SA (ADR) (OTCMKTS:AXAHY), AIA Group Ltd. (OTCMKTS:AAGIY), United Overseas Bank Ltd (ADR) (OTCMKTS:UOVEY), BAYERISCHE MOTOREN W (OTCMKTS:BAMXY)

Axa SA (ADR) (OTCMKTS:AXAHY) opened the session at $24.07, remained amid the day range of $23.82 – $24.07, and recently traded at $23.82. The stock showed a negative performance of -1.12% in the recent trading session. The stock gained a volume of 57,810.00 shares and the average volume of the stock remained 128,464.00 shares. Axa SA, (AXA), is a France-based holding company engaged in the business of financial protection, insurance and asset management. The Company operates in three segments: Life Savings, Property Casualty Insurance and Asset Management.

Has AXAHY Found The Bottom and Ready To Move Up? Find Out Here

AIA Group Ltd. (OTCMKTS:AAGIY) traded with volume of 40,161.00 shares in the recent trading session and the average volume of the stock remained 98,553.00 shares. The 52 week range of the stock remained $13.39 – $19.31. The stock showed a negative movement of -2.46% and was recently trading at $18.26. The market capitalization of the stock remained 56.37. AIA Group Limited, an investment holding company, provides various products and services for insurance, protection, savings, investment, and retirement needs of individuals and businesses. It offers life, pensions, and accident and health insurance products.

Has AAGIY Found The Bottom And Ready To Gain Momentum? Find Out Here

United Overseas Bank Ltd (ADR) (OTCMKTS:UOVEY) exchanged 7 33,742.00 shares and the average volume remained 24,651.00 shares. The stock declined -1.07% and was moving at $33.44. The beta of the stock remained 1.24 and the EPS of the stock remained 2.79. The shares outstanding of the stock remained 794.18 million. United Overseas Bank Limited (UOB) is engaged in the business banking. UOB provides a range of financial services including personal financial services, wealth management, private banking, commercial and corporate banking, transaction banking, investment banking, corporate finance, capital market activities, treasury services, futures broking, asset management

Why Should Investors Buy UOVEY After the Recent Fall? Just Go Here and Find Out

BAYERISCHE MOTOREN W (OTCMKTS:BAMXY) gained volume of 38,464.00 shares, while the average volume remained 50,348.00 shares. The stock decreased -0.83% and remained at $33.26. The one month trend of the stock was 90% and the three month trend remained positive 7.6%. Bayerische Motoren Werke Aktiengesellschaft, together with its subsidiaries, engages in the manufacture and sale of cars and motorcycles worldwide. The company?s Automotive segment develops, manufactures, assembles, and sells cars and off-road vehicles under the BMW, MINI, and Rolls-Royce brands, as well as offers spare parts and accessories.

Will BAMXY Get Buyers Even After The Recent Rally? Find Out Here

About LeadingStockAlerts
LeadingStockAlerts is a financial marketing firm that specializes in assisting the underserved small cap and micro-cap stock community.

Our site has been the clear choice for today’s investors and day-traders. As one of the internet’s premiere financial destinations, we offer the investment community some of the market’s leading emerging opportunities. Using a balanced combination of industry experience and high-tech offerings, this site keeps you ahead of the curve and ahead of the bell.

Disclaimer
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT OR WEBSITE. We are not registered as a securities broker-dealer or an investment adviser either with the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Read Full Disclaimer at: http://leadingstockalerts.com/disclaimer/


O’Flynn and Nama triumph is still a defeat for taxpayer

September 28, 2013

Property Loans

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And with one bound our hero is free! Could Michael O’Flynn be the first big property developer to successfully escape the clutches of the National Asset Management Agency? It looks like it. But is this a good thing? That really depends on whether you plan to be paying taxes here for the next decade or so.

O’Flynn is what passes for a poster boy where Nama is concerned. He was one of the 10 big developers whose debts were the first to be subsumed into the agency. Unlike several of the others he went quietly, and crucially seems to have played it straight with Nama. He gives every appearance of understanding the necessity for Nama and making the best of it.

Debt to taxpayer
For O’Flynn, going into Nama was really just a case of exchanging several banks for one new bank, albeit one with frightening powers and a mandate to get back from him every last penny he owed the taxpayer. He agreed a business plan to this effect and has, we assume, executed it well.

The proof of this lies in the reports that various institutions, ranging from German behemoth Deutsche Bank to US distressed assets specialist Lone Star, are now looking to buy his loans from Nama. They are said to be bidding about EUR950 million – which looks like a good deal for Nama.

The agency bought property loans off the banks at about 60 per cent of their face value to reflect the collapse in the market and the risk they would not recover all the money owed. In O’Flynn’s case, they probably paid more than this as he did not appear to have made as big a mess of his affairs as other developers.

In total, O’Flynn owed the banks EUR1.5 billion and when you apply the 40 per cent Nama discount you get a purchase price for Nama of EUR900 million. When you subtract that from the figure of EUR950 million to EUR1 billion that Nama will sell them for, you have a tidy “profit” of about EUR100 million for Nama .

The problem – there is always a problem – is that a good deal for Nama may not necessarily be a good deal for the taxpayer in the round. Before the taxpayer can reach a view on the merits of the deal, they need to know what happens to the balance of the EUR1.5 billion O’Flynn borrowed from the banks. The short answer is that it will be written off by the taxpayer.

The banks that sold O’Flynn’s loans to Nama at a discount have already written off the balance between what they lent him and what Nama paid them for the loans.

But the money to cover this loss – EUR400-EUR500 million – came from the taxpayer as part of the EUR64 billion pumped into the banks by the Government over the last five years . Unless O’Flynn repays the full amount he borrowed from the banks, the taxpayer will be out of pocket.

Even allowing for the putative EUR100 million profit made by Nama on selling his loans, there is still a potential deficit of EUR400-EUR500 million on O’Flynn’s overall account with the taxpayer that may not be collected. It could be less if Mr O’Flynn has been forced to sell other assets.

In theory, Nama must pursue him for the outstanding figure but this does not seem likely. Indeed the purchasers of O’Flynn’s debt will probably require assertions to the contrary as they need him to run the business for them.

Contrasting fortunes
It looks very possible then that O’Flynn could get a bailout from the Irish taxpayer of up to EUR500 million, which will stick in many people’s throats. But there is not much comfort in the flipside – afterall, a business that employs people and could contribute to the economy has been saved.

But, if it happens, what will ultimately irritate people most is the contrast between the Government’s apparent willingness to bail out Michael O’Flynn with taxpayers’ money and its reluctance to bail out taxpayers in mortgage arrears and negative equity with their own money.


Extension Service offering financial literacy workshop

September 28, 2013

Financial Topics

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One of the needs many point to in Mississippi to improve quality of life here in the state in financial literacy, and a program offered through the Mississippi State University Extension Service is looking to address that issue.

Extension is offering its Dollars and Sense 2013: Financial Education for the Classroom workshop to anyone who teaches financial education in the classroom, community or home school setting.

The free, one-day event will be held at four MSU interactive video conference sites from 8:30 am to 3 pm on Oct. 18. Participants will receive free curricula and ideas from experts on how to teach financial topics in class. Teachers can arrange to earn a half professional development credit unit upon completion.

The workshop will feature free materials available from the National Endowment for Financial Education’s High School Financial Planning Program. Partnering with MSU on this training are experts from Federal Reserve Banks, the Mississippi Council on Economic Education and the Mississippi Credit Union Association.

The workshop is available at the Central Research and Extension Center in Raymond, the Coastal Research and Extension Center in Biloxi, the Grenada County Extension office and the Alcorn County Extension office.

For more information, contact Suzie Manning in MSU’s School of Human Sciences at suzie@humansci.msstate.edu or (662) 325-3080.