All Aboard the China Merchants Train (Musical Tribute)

China Merchants to Curb Costs as Its Profit Slips

"Trading activity in Europe and the U.S. will require more time to recover as the financial sector needs time to digest toxic assets and consumer spending remains weak," Mr. Fu said. "But if there's no second wave to the financial crisis, the company's first-half result next year could outperform that of this year."

I just want to make a few comments on this rich and fertile paragraph. It isn't often that there is so much to heckle based on so few words.

First, the financial sector needs time to digest toxic assets? It sounds a bit like eating bad shrimp. You know what I'm talking about. You buy some shrimp, leave it in your car for a hot summer afternoon, and then decide it still looks rather tasty the next day. Here's a thought. Once it enters your mouth, I suggest spitting it out. Time is not your friend when it comes to digesting it.

Second, consumer spending remains weak. Big surprise there, huh?

Third, what's all this talk of a second wave to the financial crisis? Who said anything about that? Surely a second wave isn't priced into the global stock market that's seen the most impressive 6 month rally in well, pretty much forever.

Fourth, even IF there is no second wave to the financial crisis, the best they can offer for guidance is that the company's first-half results next year could outperform that of this year? Could? That's the best they can do? Could?

If "ifs" and "buts" were candy and nuts we'd all have a Merry Christmas.

The company attributed the fall in earnings to a decline in trade with China, resulting in weaker demand for container port services.

China is growing robustly though. Count on it. I'm certainly willing to invest (my time, as it relates to heckling and sarcasm).

It sure feels like 2004. Easy money is trying to push up asset prices again. I watched the DJIA climb to 14,000+ as a bear. I wonder how long I'll be watching it on this pass. I wouldn't short the momentum train, but I have no great desire to ride it either.



You will note that at least one of the containers is empty.