10/24/2008

Time to acquire local banks

With the stock market going into a tailspin, with banks and blue chips companies at fire sale prices, it is time for GIC and Temasek to consider buying them up in the cheap. The American govt is pumping in US$250b to buy up bank stocks. GIC and Temasek should find value to acquire or build up their holdings of local banks and blue chips. And with DBS being the smallest local bank, why not buy up the number One or number Two banks?

9 comments:

Anonymous said...

right, time for a name change.

if ocbc swallow up dbs, it shud be renamed ocbs. if uob, uobs.

why have so many banks, 2 great banks will do.

heard china banks on the prowl too.

redbean said...

i think the predators will be GIC and Temasek now. they have plenty of cash to throw around. both ocbc and uob could be prime targets for acquisition. see what they will do on tue.

redbean said...

and yes, since everything is for sale, the chinese swf may come in to buy a few pieces of our treasures.

Anonymous said...

they could raid sing assets as soon as the sgd goes kaput and everything becomes cheep.

redbean said...

yup, many names will change when the raiding starts. the prices of many stocks, including the bluest blue chips are at a steal.

Anonymous said...

Many stock market analysts were talking about a steal just months back. The only thing stolen are the money of those investors who jumped in 2, 3 months back.

redbean said...

i also say that no one knows which way the market is heading. it is all a guess, educated or wild guess.

anal guess or a breeze from the rubbish dump.

Anonymous said...

Even economist are just 'gassing' when they talk about growth. So, you have to understand that stock market analysts are no better. Rely on your judgement, tolerance and instinct.

Anonymous said...

i rember the dmg analyst stating the buy price of sph as $3.80, and it is now going to $3.30 with more selling ahead. thus in the stock market, one's guess is just as good as another and it didnt matter if you are a CFA or AFC.