Blog 7 by Dieter De Vos; UK car industry receives £2.6bn injection

UK car industry receives £2.6bn injection

Numerous people lost their jobs because of today’s financial crisis. To rebuild the economy, jobs need to be created on a large scale. That’s what the British car industry is going to do. Therefore, investments need to be made. Get ready for a £2.6bn injection.
The question is: How will they do it?

First, Nissan, Britain’s single biggest carmaker, which is the daughter company of the Renault group is going to start the mass production of 50,000 electric vehicles from 2013 at the new Sunderland base. Nissan will commit 420 million pounds to realize this. This means that the new factory needs new workforces, so jobs will be created over there. If searching for a save and profitable investment, then you could invest in these electric vehicles technology because they will make our future. It’s profitable because, if investing, you’re going to look at the future. Driving on rechargeable lithium-ion batteries is the future because within 30 years, our oil reserves will be put out. Thanks to the 200 million pounds loan of the European investment Bank and the 20 million pounds of the government, these investments could be realized

Secondly, Ford is also doing well and want to built out over their production of the next generation, cleaner diesel engines in Dagenham, Southampton and Bridgend which means that new technologies will be used. These are worth the trust of investors because Ford needs their money for their research and development. Ford is going to invest 1.5 billion pounds over 5 years in this motor section. Thanks to this, not only jobs will be created but also current jobs will be safeguarded!

Third, The McLaren formula one team, who also builds supercars for Mercedes is ready to produce supercars to compete against his famous revivals Lamborghini and Ferrari. Sir McLaren said that he will produce 2 supercars to increase the selling. This makes his investment profitable.

Last but not least, On the 18th of march, a Business secretary fun of 2.3 billion pounds was opened. Vauxhall, of the General Motors group received a 270 million pounds government loan guaranteed to build more environment friendly cars on Merseyside. But, before this loan, the government had already spent a loan of 360 million pounds from the European Investment Bank.

According to me, I am convinced that the sort of investments will turn out profitable. The investments who were supported by the government are good for the economic position of a country. Because more people will have the opportunity to find a job, even current jobs will be safeguarded. This means that the purchasing power of the Brits will be increased.
So less jobless people means a brighter future for the country’s economy. The car production is increasing since February, so maybe more jobs can be created then predicted.

Investing in the new electronic technology of Nissan and Renault in favor of the environment is also a way to make our future brighter. Today’s, investments in favor of the environmental are hot because you are investing in our health, because CO2 emissions of cars causes cancer. These cars have the advantage of zero Carbon dioxide emissions. So, the problematic case of the greenhouse effect can be solved. But we have to considerate that the turnover will need some time. The capitalist who own the oil reserves are to powerful . So this investment will only be profitable within 30 years I think, because people must get trusted with the new electronic technology of driving. But today we need to operate because doing nothing is execution. Today, cleaner diesel engines are the first way forward. So the turnover will be started by the new technology of Ford. After this, we can count on reliable electric cars. So our future looks bright for our children and grandchildren.

I can conclude that these investments are worthy because of the inventions who are going to penetrate the market within the future, that starts today with the cleaner diesel engines.
I also like to mention that it’s remarkable that the car production is rising since February.

Source: http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7067962.ece

Blog 6 by Dieter De Vos; Cineworld profits from 3-D films boom

Cineworld profits from 3-D films boom

Have you ever heard about 3D movies? 3-D stands for 3 Dimensional. It’s a feeling of being a part of the movie. Today, more and more movies in the cinema are visible in 3-D. But why does the popularity of such a movie increases?

In the past, the cinema was a popular place if you wanted to watch the newest movies. But today people go to the cinema less, because they can already download the latest movies on the internet for free. Which means that the popularity of the cinema decreases.

But, Cineworld, the UK’s cinema chain, has found a solution to boost the popularity of the cinema by investing in 3-D technology. 3-D movies give you the feeling that you’re in the movie. You get het feeling that the movie isn’t projected on a flat screen anymore but that you’re a actually part of that movie. It’s a motion picture that enhances the illusion of depth perception. For example, the popular rock group U2 let filmed their “Vertigo tour” show in 3D, so that viewers could imagine that they were at the concert.

The investment of Cineworld had the advantage of increasing ticket sales witch 11.5 per cent. This can be translated to a revenue of 333.4 million pounds for the 53 weeks to December 31. But the success of the 3-D blockbuster movie Avatar had a positive influence on this amount. Thanks to this movie, the pre-tax profits raised from 27.6 million pounds to 30.8 million pounds. The intention of the movie makers was to create the biggest-grossing film of all time. They succeeded, three weeks ago Avatar was awarded with three Oscars.
According to Cineworld, the prospect for the coming year goes to Disney’s remake of Alice In Wonderland, which is already a huge success in cinemas.

To make the investment profitable, the cinema chain raised the average ticket price by 7.5 per cent to 4.71 pounds last year. They also made it more attractive by introducing two-for-one deals on Coca-cola and sweets. If you buy one of them, you’ll get the other for free. This stimulated customers who usually don’t buy food and drinks at the cinema, like popcorn for example. This turned into a dividend of 6.8 pounds a share for the shareholders previous year. So an attractive financial result could be published.

According to me, 3-D cinema is the only way to get the people back to the cinema. I have no doubt about this sort of movie viewing, because you can’t experience this effect when you’re at home, you can only watch the movie then. Some years ago, the internet became popular on a large scale so people got more trusted with it and they started downloading movies that were just released in the cinemas. But investors found the right way to rebuild the popularity of cinema, even in our regions. Since 2 years, the Kinepolis cinema has also been offering 3-D movies, which has already increased the popularity of the cinema.
What’s also remarkable in our regions is that the price of a cinema ticket increases, what’s hard during today’s financial crisis. So we feel the influence of investors on the price of our ticket.

The total cost of filming a 3-D movie is also higher than filming on the old fashioned way. So I am convinced that it’s an attractive market for prospective investors. Money in this market is definitely needed to bring this sort of movie to a standard. That’s the reason why I should also invest in this market.

I can conclude that the success of 3-D movies could be really important for prospective investors. It’s more than just a hype. It’s even a method to defeat the illegal piracy of copying movies. One day, it will become a standard for movies in the cinema. When this standardization is reached, it will maybe turn over to our living rooms.

Source: http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article7057842.ece

Blog 5 by Dieter De Vos; Solar panels: what a bright idea

Solar panels: what a bright idea

Looking for a profitable investment for your energy bill? Then you’ll have to join the micro-generating revolution by placing the right technology for your home, some solar panels for examples. How does it work?

For getting a substantial reduction for the energy bill in the UK, it is necessary appealing to the government for “The Clean Energy Cash Back Scheme”. There is a reward that the government will pay to homeowners who generate their own electricity on an environmental friendly way.
This special offer only counts for solar panels who are placed between July 15, 2009 and March 31, 2012.
Remarkable is that these rewards are tax-free. This makes the scheme attractive for prospective investors.

A real life example of a British family explains the benefit of an investment. The average price for an installation cost 12.348 pounds of which 2.500 pounds was covered by the government. If this family should generate 1.600 KWh each year then they should earn 736 pounds by putting the electricity back on the grid. So annually they will save 112 pounds on their electricity bill. This means that the family gets an annual return of more than 8%. So after 13 years, they’ll have a full profit on their investment.

Take into consideration that only the best supplier can give you full support because the whole house has to be explored. Some houses or their roofs are not made for solar panels. Even correct certifications and good local recommendations are useful. Although, not all the brands offer a 20-year guarantee. Sometimes, other ecological investments are better, like a water wheel, a micro-hydro generator or a wind turbine.

Houses on which solar panels are placed are even a profitable way for the real estate market. Professionals call them: “houses with an income”.

There are also some trends in these sector, if for example energy prices should increase by 5 % a year than the profit increases for today’s investors.

According to me, if wanting to invest in environmental-friendly energy source, that is investing in the future of all the children and grandchildren. I think that’s the reason why the government offers support for solar panels investments. Because, otherwise the use of environmental-friendly energy sources will be used, like coalmines for example. Mining of coals on a large scale can cause earthquakes and the gasses they spread can cause cancer.
The other benefit is that the value of your house will increase, you’ll also have to pay less on your energy invoice, so there aren’t any reasons not to do it.
But I’m definitely convinced that only the right supplier for you can offer the best advantages by selling the right system. Because thanks to the hype of solar panels, people intend to just buy the best so it is better to explore the market and find the best supplier for you.

There are some brands on the market who don’t offer a guarantee of 20%. So these suppliers aren’t sure about what they’re selling, which means that buying a solar panel from these suppliers is a bad idea. If you are certain to have found a supplier that is sure about his case, than you’ll find the right investment.

I can conclude before investing in solar panels that looking for the advantages is not the best idea, because placing solar panels is always a profitable way to invest. But, you will have to take to consideration what you’re buying, just find a trustful supplier and your investment will be more than worthy thanks to the support of the government.

Source: http://www.timesonline.co.uk/tol/news/environment/article7017238.ece

Blog 4 by Dieter De Vos: Batman scores $1m knockout against Superman in comic wars

Batman scores $1m knockout against Superman in comic wars
From The Times

Batman, Spiderman, Superman and the X-men are super heroes who once appeared for the first time in an American comic book. During the history, these comics became rare. But when does something become rare? When the price you would have to pay for them increases day by day.
If you are looking for a safe investment, then you’ll have to buy rare comics. These comics are really worth the investment. Today you can compare them with Old Master paintings of Leonardo Da Vinci for example. Remarkable is that girl’s comics are the biggest risers in Britain. From one pound to six today.

Last Monday, the first Superman action comic book from 1938 has been sold for one million dollar on the New York auction website CommicConnect.com. But last Thursday, the comic book from 1939 with the first appearance of the superhero who’s called The Batman was sold at an auction at Dallas for at least 1.075.500 dollar.
The auction has written history. It’s the highest price that was ever bidden for a comic book.

You’ll have to take in account that the first issue of a comic book isn’t profitable to buy. If you want to invest in a comic book, you’ll have to buy the comic with the appearance of a superhero who’s still popular today. For example, Batman only made his arrival for the first time in the detective comics number 27. So, number 27 is invest worthy. Thanks to the recent Batman movies, Batman is still hot.

According to Malcolm Philips, the leading British seller comic Book Auctions Ltd, these comic books are becoming valuable collector items. Which means that only wealthy persons can afford them. He even said that the future for Spiderman looks rosy. Spiderman made his first appearance in the early 1960s. There’s only one obstacle for the “Spiderman investment”, there are still more than hundreds of copies of Spiderman’s first appearance in the comic book “Amazing Fantasy number 15”. Which doesn’t means that their might not be comic books that get no bid, like non-popular comic books.

According to me, comic books are the new generation of investments. On a local scale, we can compare this with the comic strips of Kuifje and Nero who are drawn and written by Belgian graphic novelists. These also became collector items. The value of these comics increases day by day. But on a global scale, there are the American comic books with superheroes who are well known all over the world. Thanks to movies, toys and even more. Everyone knows Batman, Superman, Spiderman or even the X-men, who are the most recent superheros.

The negative side about the high-prices for these comics is that only a few people who can afford these comics have the possibility to read them. So I am convinced if Malcolm Philips brings a remake of the first comics on the market, he will also have done a profitable investment. Because, if he does that, more and more children will have the opportunity to read the comic with the first appearance of their favorite superhero. Not only children, because there are still a lot of other fans who like reading comic books; like me for example. A large target group will get hit. And the profit of the company shall increase.

I can conclude that comic books with the appearance of the well known superheroes are getting more valuable in comparison with the other comic books. So, if you can afford one, just do it. You will have made a profitable investment.

Source:
http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/books/article7043310.ece

Blog 3 by Dieter De Vos; Investing – from Buffett to Pooh Bear

Investing – from Buffett to Pooh Bear

Investing from Buffet to Pooh is an exclusive extract from Robert Cole’s new book where he writes about his top unwritten laws for successful investing. But, what are the laws for successful investing? I made a summary of them;

There are ten laws for successful investing. The first rule is: never forget rule number 1. According to Warren Buffet, a stock-market guru, you shouldn’t lose money.
Rule number 2 describes the link between money and people. If you want to make money, you will have to invest in people. It’s a sort of psychological view because companies are seen as collections of people. So you need to be able to relay on trustful people to indentify good investments.

The third rule is the logical rule of three. If there is a reason why you shouldn’t invest in a company and you have at least 2 good reasons why the company is invest worthy, then you need to take action.

Hayek’s law is the fourth rule, the law describes the suggestion to keep the company’s directors when you’ll invest in a company. This explains the opportunity for the investors to reach a corporate governance.

There is also an important fifth rule. Investing and gambling means not the same. There is a difference. Gambling gives money to some, but creates a lot of decreasing values as well. But thanks to investments, profits increase, so all can win.
Sentiments rules are explained in the sixth rule. If you want to become a good investor, you might not act rationally but irrationally. As investor, you need to have the importance of behavioural psychology.

The seventh rule makes the difference clear between price and value of the investment possibility. You need to know the value of everything.

The eighth rule refers to Winnie the Pooh. Once, the yellow bear got easily claimed in a tight spot to eat some honey. But before his action, he didn’t think about how he could get out of it. So before you invest, look if there is a way out.

For the ninth rule, you’ll have to take account that tax breaks aren’t useful if the investment isn’t profitable.

Last but not least, the tenth rule who says: An investment portfolio is like a garden. Like a garden changes during the season, investments do to, so it is wise to see how investments change before you act.

According to my opinion, I don’t agree with all Robert Cole’s top unwritten laws for successful investment. The first law explains that you shouldn’t lose money because you can use a strategy for not losing money but to be sure about it, an investment is always a risk.

Trustful people are people on who you can relay on. But when do you know if people are trustful? I am convinced that these days nobody can be trusted. I can advice everyone that taking their time to know someone better is a more efficient law. But it has the disadvantage that it takes a lot of time, and time means money. What’s important when doing business.

If I read the third rule then I thought by myself: “Is this rule logical?” Yes, is the answer. I use this rule when I play poker.

The fourth rule is only useful when you do an nvestment on a large scale.
The fifth rule is not useful, because, how can someone know the difference between gambling and investing if investing is gambling because you can always have a bad result.

The sixth rule explains the need of behavioural psychology. I am sure that if you can use this rule as potential investor, you are an excellent investor.

The seventh and the eight rule are the most important rules. If you know what the product is worth you will not overpay for a share. Everything has it’s own price, you have to buy low and if the product is over it's price it is a bad move to invest at that time.

For the eight rule, a way out is always necessary. If there is no way out, an investment can’t be worthy.

The ninth rule only depends of the future, so you can’t predict this.

The tenth rule is a today’s rule, investment must be placed in time. There are times when investments go better or even less better.

I can conclude that investments are always a risk and need a personal and efficiently strategy that can’t be described because it differs from the sort of investment you make.

Source: http://www.timesonline.co.uk/tol/money/article7033838.ece