Another billion down the lonkang

[Kklim]

http://www.reuters.com/article/mergersNews...N45472620090515

 

UPDATE 1-Temasek says sold Bank of America shares

Thu May 14, 2009 11:18pm EDT

 

By Saeed Azhar and Kevin Lim

 

SINGAPORE, May 15 (Reuters) - Singapore state investor Temasek [TEM.UL] sold its entire stake in Bank of America (BAC.N) during the first quarter of this year, taking a hit on its investment as it refocuses on emerging markets.

 

Temasek has been aggressively investing in Asia in recent months after being burned by Western banks, like most sovereign wealth funds which bought bank stakes during the early phase of the global credit crisis.

 

"We have divested our shares in Bank of America," a Temasek spokeswoman said.

 

Temasek held 188.8 million Bank of America shares after it said in early January it had converted its 13.7 percent stake in Merrill Lynch & Co into BofA stock.

 

At that time, its stake in Bank of America was worth around $2.6 billion, or $13.7 a share.

 

A source briefed on the deal told Reuters the shares were sold for between $2.53 and $14.81 during the first quarter of this year.

 

Assuming an average price of $8.67, Temasek may have suffered a loss of over $1 billion, according to Reuters calculations. Temasek declined to provide the average selling price of its BofA shares. (Editing by Ian Geoghegan)

Edited May 15, 2009 by Kklim

[RadX]

Long term?

[Mustank]

i was thinking about that too

[Drive_carcar]

When shares gamblers get caught in the wrong direction, they usually try to save face and say they are investing for the long term, that the particular company has very good long term prospects etc.

 

Tama-de-sick have that typical looser kind of strategy. It's fine and good that they made a mistake in strategy, and bought in ML and BoA too early. What they had failed to do, is to cut loss early enough once the investment showed signs of turning sour. Instead they held on to the hope that in 10 - 20 years time, all the losses will eventually turn around, and that the paper loss for now is just that, it's not realised losses. So they procrastinated.

 

It's a very rookie mistake, and I thought they had professionals running the show?

[Law_ong]

Long term?

 

think of the positive side. they cutting lost before probable further dilution due to more capital reserve boa need to raise. to protect their shares, they will need to pump more money and these money from where ==> peasants.

 

so it might be good that we are poorer by est $325 per person than lossing more...

[Quirky_ster]

In general term, whenever you make decision without involving your own stake... it's a different story... anyway, there's a few model answer that can be used to explain it...

 

It's an honest mistake..

 

Long term view ...

 

It's for the future good of ...

 

Prudence ....

 

In a different light.. at least we know how the money is lost to and where... in some other countries.. it got sucked up into dunno who's pocket... and never ending power struggle... we still have good roads and workable systems that can be a challenge at times but still livable...

 

 

 

 

 

 

 

 

 

 

[Piyopico]

We are not better off. Come on!

 

Make mistakes like a rookie. Buy high high, never set cut loss and see price fall through the roof, later become kancheong spider and finally sell at low!!! March was the LOW man! You know how many funds bought and made money during March? We must be special and do the opposite, now must be the joke of the whole financial world. Long term means 3 months for them.

 

And we are led to think they are professionals. First real test come only they bottled it big time. What to do, we just take it lor.

 

[Lala81]

think of the positive side. they cutting lost before probable further dilution due to more capital reserve boa need to raise. to protect their shares, they will need to pump more money and these money from where ==> peasants.

 

so it might be good that we are poorer by est $325 per person than lossing more...

 

i suspect that they know that share dilution is going to occur. Even if u shareholder, if share dilution occurs., u have to lanlan suck it up cos the US govt is running the show.

 

that being said, the investment in US banks and UBS is really a big mistake retrospectively

[Toapayohkid]

i think getting rid was during the new temasek ceo? he sees they are worthless ho ching dreams and decided to cut losses and go for resources, his pet projects.

[Law_ong]

We are not better off. Come on!

 

Make mistakes like a rookie. Buy high high, never set cut loss and see price fall through the roof, later become kancheong spider and finally sell at low!!! March was the LOW man! You know how many funds bought and made money during March? We must be special and do the opposite, now must be the joke of the whole financial world. Long term means 3 months for them.

 

And we are led to think they are professionals. First real test come only they bottled it big time. What to do, we just take it lor.

 

 

tat what i was saying...look on the positive that they take the loss now and we suffer or else they will wanna cover bigger hole with more losses tat is to be squeezed from us peasant.

 

[Quirky_ster]

Glad that these PRO dun get sucked up to the Financial sectors.....

 

Take it and move on... cannot think so much, now better go and pay my utility bills, housing loans, car loans, pump petrol, top up cash card for ERP, and buy my groceries where the price is fair...

 

Hopefully the GST collected from these helps to cover these losses...

[Application9999]

so their long term plan is to lost the money now....and hopefully can gain back from somewhere else? what an elite way to manage our beloved country fund...knn

[Drive_carcar]

We are not better off. Come on!

 

Make mistakes like a rookie. Buy high high, never set cut loss and see price fall through the roof, later become kancheong spider and finally sell at low!!! March was the LOW man! You know how many funds bought and made money during March? We must be special and do the opposite, now must be the joke of the whole financial world. Long term means 3 months for them.

 

And we are led to think they are professionals. First real test come only they bottled it big time. What to do, we just take it lor.

 

That's exactly my point! Why don't they give me the money and I'll manage it for free for them? If I make money I take a small commission, if I loose money I don't take anything.

 

Why pay sky high salaries for so called pros who enter and exit at the wrong time, making a game our of our precious reserves? Even if they can claim in the past reasonable returns were generated, but then again, any fool can make money when the market is good. It takes exceptional talents to make money when times are bad.

 

In short, we are very short-changed.

[RadX]

so their long term plan is to lost the money now....and hopefully can gain back from somewhere else? what an elite way to manage our beloved country fund...knn

 

that is why they are FUN managers and not FUND

[Eyke]

i wonder who's going to get the award for this brilliant investment choice.

[Piyopico]

You know what, the past 3 years or so, the immortals seem to be making a lot of mistakes????

 

Why ah? The funny thing is, we lesser mortals are lapping it all up. I dun expect any changes 5 or 10 years down the road.

 

[Vextan]

1 billion dollars can help how many needy ...

 

to think that they took more than half a year to debate on the paltry increase of social assistance amount.

 

haiz ...

[Law_ong]

Why pay sky high salaries for so called pros who enter and exit at the wrong time, making a game our of our precious reserves?

 

this kind of link to another thread where our young graduate is asking for 5k per month......they are pro coz they got good academic results!