When securities firms offer savings

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When securities firms offer savings

Post by 82quangphong on Wed Jan 12, 2011 1:40 pm

Job market is tumultuous Kim Long Securities Company (KLS) both reported losses in 2010 but has "local" money to nearly 1,800 billion VND.

According to financial reports fourth quarter announced yesterday, KLS interest quarterly 4 / 2010 of about 29.4 billion (unaudited). A whole in 2010, KLS 172.82 billion loss.

The KLS hole now nothing unexpected. KLS rumors about doing well in waves past 11-12 months has been verified. What the market is interested in cash are recorded in the last reporting period of 2010 with total cash and cash equivalents at 1768.95 billion.

First, the structure of the total amount of KLS 1768.95 billion, including cash and bank deposits safe may now use about 9.93 billion. Deposits from investors about securities trading is 101.55 billion. Clearing deposits and securities transactions is 12.72 billion. Left biggest account is 1644.75 billion KLS money deposits at banks.

Obviously the amount of cash savings is so great concern. Generally the financial investment, savings are also considered a strategy. As difficult market, the preservation of capital is to be placed on top. Even with individual investors, many people also accept the interest rate on savings is a good time to wait for the market tend to be more clear. Medium term savings safe, virtually no risk, just avoid the depreciation of capital prior to inflation.

However, the story of "local" big cash with KLS have differences. Unlike other businesses, KLS is a financial investment organization, so the effective use of capital is as important as how much money. Investors tend to look at the stock market KLS also assessed differences in cash that these companies are.

Positive people that it's cash advantage for the investment strategy next time. Obviously when the market declines, the more money is an advantage. Cash can also ensure the value of shares at a certain level, the real value of the business.

Who carefully looks at the use of capital. More money does not mean you can win big market waves. Money is the necessary condition, but more important is the quality of investment activities, which the company is the quality of securities trading.

KLS in 2010 have issued to raise capital and obtain greater surplus. That is no small part in the current amount of cash actually contributed money to shareholders. Compared with 2009, the cash savings of KLS term increases strongly (as of 31/12/2009 only 999.9 billion). Thus KLS in 2010 has narrowed considerably from business operations, sold off the list and last 4 quarter operating profit thanks to key profit / stop loss and refund provisions.

However, large current account which is very interesting KLS. That may be the basis for making investors more risk when betting on the ability of KLS funded in the future. However, this is only the original elements, is more important than actual human advantage. To realize the potential, at least to two factors: First, the market must be the wave increases, and second, the investment activities of KLS efficiently.

Both these factors point remains unclear. KLS always have "traditional" large amounts of cash and that's always an excuse to share this with strong waves in the market's rally.

KLS's case was no different a few veteran businesses listed on HOSE. In 2009 the share price down very sharply. Enterprise also has a huge surplus, a ton of cash. Even the Board chairman of the company complained to the press does not understand what investors think the market value of the business equivalent of the company's cash position.

That is of course true, but only really make sense when the business was "eaters." Organization "vultures" to buy the entire business, offering clean and play forever be said of all assets remaining. Point is not that the fact that large enterprises, it is difficult to acquire. Shareholders can not do anything with that pile of cash, in addition to looking at the world interest rate monthly wasting. So much cash businesses that do not know how lucrative the maximum shareholder is also not very meaningful. Where is that money from if not from the shareholders surplus that contributed to the purchase of additional shares issued?


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