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One caution note on dividend paying ADR stocks

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Was listening to WealthTrack podcasting in the weekend, and Westwood Holdings CIO Susan Byrne mentioned some European dividend paying stocks (Nestle, Danone, Novartis etc), which reminded me one thing. Not all dividends are equal. As I recall, I bought Sygenta (NYSE: SYN), the Swiss agriculture stock last year, and my broker withhold some of the dividend. Although I did claimed deduction from income in the tax return, I was not happy I did not receive the dividend at first place.

Barron’s had an article on some large European companies earlier this year, and here is the dividend table. Looks quite enticing:

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Wuxi Apptec WX Q1 2009 update

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(Update 2, May 20) Bought it back, looks like it has more room to run 🙂

(Update May 19) Sold out my WX positions. I had a second thought on the stock.

(Original) Formerly Wuxi Pharma Tech, the name change was to reflect the US based Apptec acquisition a year ago.

I have bought and sold WX a few times since its IPO in 2007 (Wuxi Pharma Tech looking good; Got some WX again; Wuxi Pharma continues to drop). I sold out my WX position last Sept. (shortly before Lehman’s fall). I decided to got back some WX again about 10 days ago. A few things have changed since last update:

1) Since Wuxi cancelled the secondary offering last May, the selling shareholder UOB sold shares to private equity firm Warburg Pincus.

2) WX had to wrote down a large portion of good will because buying Apptec at the wrong time (pulled trigger too earlier).

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This silly earning thing

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First Quarter earning reports for the stocks I own (as of this writing, it could change without notice). This is mostly for my own benefit, I want to collect them in one place rather than go to different IR web sites. Listening to conference call is a mixed experience, sometimes it’s fun, sometimes it’s boring. The most interesting part is the Q&A session, where the analysts and management goes back and forth: and I get the most out of things there (most of time).

US Bancorp USB beat slightly
Conference call (audio and slides)

McDonald MCD (barely according to CNBC)
Conferece call (for some reason it’s not working for me).

CNBC report (link).

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Ingersoll Rand: huge write down, stock still up?

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This morning, Ingersoll Rand (NYSE: IR), the diversified industrial company makes procucts to air conditioner (Trane) to Schlage locks, reported its Q4 2008 earning this morning. Some highlights: it wrote down $3.7 billion (pre-tax, $3.4 b after tax) from Trane acqusition, or a loss of $10.56 per share. Interestingly, the stock went up about 15% in today’s trading. Why?

Some are saying the reason is the Q4 earning is above guidance (and street expectation).

Ingersoll Rand logo

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Syngenta reports 1H 08 results

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Syngenta logo

From its IR web site

  • Sales up 20 percent at constant exchange rates to $7.3 billion
  • Crop Protection sales up 21 percent(2) at $5.55 billion
  • Seeds sales up 15 percent(2) to $1.74 billion
  • Earnings per share(1) up 36 percent to $16.53
  • Earnings per share $15.93 after restructuring and impairment
  • Capacity expansion to meet longer term demand growth

  • Video
    CEO interview (cantos, free registrastion required, look for Syngenta).

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    Apple launches store in Beijing, earning

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    Apple launched its first China store in Beijing last Saturday, with 2000 fans waiting outside, including some celebrity names such as Lu Yu (Phoenix TV), Cui Jian (China rock star) etc. You can see the scenes of Apple launch at Sina (Chinese), or preview pictures at David Feng. The Sina picture reminds me of the iPhone launch here in the US, a mob scene 🙂

    The cult culture
    Over the years Apple has this cult like culture among its fans. Looking at site such as MacRumors you will get an idea. While I think Apple products are generally very good, I don’t like their prices. It seems they are going to lower their prices, as they are expanding their market. This is a delicate problem for Apple because people usually got wooed to Apple because of its unique design, cool brand, and thus get the “being cool” status from friends. Now if Apple is everywhere, like iPod did, it loses that status. But Apple is going to pursue this route anyway, under the pressure from Wall Street. This can be shown in its earning forecast for next quarter.

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    Weekend review w/e 071908

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    (What a week, Yahoo Tech-ticker, link)

    China’s role in the Fannie/Freddie mess
    As Fannie/Freddie crisis deepens, people find China in akward postion because China is the largest holder of 2F’s bonds: total $376.3 billion. I don’t know exactly how China got into this mess, but I think one reason is decision maker in China must think 2F bonds are safe because of US goverment implicit gurantee. At least the market thinks so because the rating agency S&P, Moody and Fitch all gave Fannie/Freddie top rating. But wait a minute, didn’t those rating agency give a pass to those toxic MBS and CDOs? One thing I am sure is the China 2F buyers’ job are still safe, because at least they did better than the guys bought Blackstone at IPO, bought Morgan Stanley at $50s couple months ago.

    Financial companies using lots of oil?

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    GDP and stock options

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    GRE analogy problem
    China GDP number: politicians vs.
    Corporate earning: executives stock options

    Hint: the local officials pump up the GDP numbers so that they can get promoted; the corporate CEO/CFO pump up the earning number so that their stock options will be more valuable.

    Of course in an ideal world, when the law is enforced, those kind of things will not happen.

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    Earning update: Mindray, GSIT

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    GSI Technology Logo

    GSI Techonology
    As I talked in my previous post (a while ago), this is the little semi-conductor (very fast SRAM) stock (Nasdaq: GSIT) I bought a year ago at its IPO. Since its IPO it reported two disappointing quarters at first, more recently it reported two decent quarters (Fiscal Q4, Fiscal Q3). But I sold it this morning due to the following:

    1) Lack of liquidity: the daily volume on this stock is thin because of lack of institutional support. Basically if I want to sell, the day after earning report is a good time because of the volume spike.

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