Sunday, July 20, 2014

Stock market and High frequency trading

High frequency and computerised trading and rogue trading is again  in the news with  trader Mr Adoboli working for UBS  who was arrested at his desk, is alleged to have lost £1.3 billion through his rogue trades  according to the company , now also annoucing that they might go into a loss in this quarter. According to some reports in the media it was said that Mr Adoboli Himself had reported the  trade when the trade went bad before the computers picked up the loss.
Not so long ago in 2008 Jérôme Kerviel, the Paris-based Société Générale trader lost £4 billion in rogue trades, but fought it out in court contesting that the trading firm knew about his trades with large amounts.
trading platform algo HFT trading software

High frequency computerised trading in Australia

HFT drives the wild swings in global markets and in co-relation influences the local assets, the intensity is expected to rise with online exchange Chi-X to  begin operating in Australia soon with a limited number of stocks in November. The ASX will launch its PureMatch trade transaction network, geared towards "attracting high-frequency trading customers", in the same month.

Trading robots and Investment firms

A High frequency Trading ( HFT ) program is essentially "robots" or custom created software trading the market. This software is custom made for big investment firms , so that they can use this software on high end computers to execute them fast on the market , when certain criteria are met( for eg  the price of s stock falls a certain percentage quickly then the software can sell the stock rapidly, these trades sometimes takes multiple criteria and factors to execute a trade).The software are often also called “trading robots”.  These robots or programs can also be describes as “Computer platform that allows the Financial Institution to engage in sophisticated high-speed, and high-volume trades on various stock and commodities markets. “ Among other things, the platform is capable of quickly obtaining and processing information regarding rapid developments in these markets.
"The problem is that so many of them are tied to look for the same price movements. So if one robot starts buying it just feeds all the other bots to do the same. It’s one factor contributing to these ridiculous swings you see on the markets." .At the same time sometimes when one robot of a big investment firms sells this can create a price drop on a stock, this can trigger another robot also to sell, thus creating a big sell off on the market as well. The big investment firms are quite secretive of the the algorithm that their robots trade on , as other trading firms can take advantage of this knowledge The rapid speed of this approach allows hedge funds and banks to dip into shares, commodities and other investments, sometimes in a matter of seconds to do massive trades to realise big profits. Goldman Sachs is a leader in the business of computed millisecond stock trades, reaping great profits from the transactions.
fast trading and Usain-Bolt australia
Recently ,computer trading software was in the news when according to media reports Sergey Aleynikov, tried to steal the computer trading software  from Goldman’s Sachs  automated stock and commodities trading business program.These software helps generate millions of dollars in profits each year.
When huge volumes of stock are moved or traded in such short time, fortunes are made and lost before anyone without such fast access can respond. The market changes in a blink of an eye  faster than the trader on the floor can pick up his phone. Australia does not allow for the kinds of arbitrage trading seen between trading platforms in the US and Europe. Critics say HFT is arbitrage, because it’s "getting something for nothing." which means that everyone pays, though many traders argue that HFT is no  different from day-trading or even “buy and hold” and therefore is not arbitrage.
In Australia, a high-profile court case between two local market heavyweights, Optiver and Tibra Capital, was in courts amid intense secrecy over revealing computer codes used in the trading strategy because of their incredible value
Flash trades  Algorithmic trading and “Wash trades”
Traders Magazine defined Flash trading, otherwise known as a flash order as “a marketable order sent to a market centre that is not quoting the industry's best price or that cannot fill that order in its entirety. The order is then flashed to recipients of the venue's proprietary data feed to see if any of those firms wants to take the other side of the order. This practice enables the market centre to try to keep the trade.
The practice of flashing orders across trading platforms helps providers of market liquidity, many of whom are high-frequency traders with powerful computer trading systems, to attract "buy" and "sell" orders from investors. Critics of the practice says sometimes some big  traders can unfairly exploit others with this method.
An ASX review details ''wash trades'', with the information that a wash trade ''is deemed to create a false and misleading appearance of active trading in a security'' and breaches the Corporations Act
.australian online currency trading
The European Commission, the 27-nation European Union’s executive arm, is considering listing specific examples of strategies using algorithmic and high-frequency trading that should be punished by regulators as market manipulation
Australia , ASIC and High frequency trading
Electronic traders have been active in the Australian Stock market for several years. The most recent estimates suggest that high-frequency traders (HFT) make up about 20 per cent of the local share market's trades. ASIC has flagged tightening controls on stockbrokers that allow hedge funds to use their systems for high-frequency electronic trading as it prepares to open the Australian market to high-frequency trading groups
Links
Market Makers and High Frequency Trading
Cash-cow---high-frequency-trading
Australian equity market structure

Thursday, November 28, 2013

Collin Foods ASX - Like fried chicken and want to invest in KFC ?

how to invest in KFC in australia

Who does not like chicken ? - Chicken has always been of the more popular foods due to it being white meat , high in protein and  no health  risks in  comparisons to some other meats. So it would make sense if you actually think that this would be a good investment based on this general  information.

COLLINS FOODS LIMITED (CKF)

But picking stocks is not as simple as that ,  and punters should always do their research  before investing . However what we are focussing on  today on is Collin foods which we have featured on our blog before as a stock with potential. Collin foods is in the fried chicken sector , more specifically KFC.

Its currently trading @ $1.77

Jim Collins is the founder of the Collins Foods Limited, a franchisee of Kentucky Fried Chicken in Southern California, accepted the franchise for KFC in Queensland in 1968 and the first restaurant opened on 16th July 1969 at Kedron in Brisbane.

Collins foods has just announced that they are entering western Australia territory and expanding  and has announced that it is acquiring Competitive Foods, the franchisee of 44 KFC restaurants in Western Australia and the Northern Territory.

This is going o add to their portfolio of  125 KFC fast food outlets, mainly in Queensland with a couple in NSW, as well as 27 Sizzler restaurants across Queensland, NSW and WA.

The acquisition will give Collins foods  a total of 169 KFC stores

This good news is also to be taken into consideration with the news that Collins Foods reported a 17% fall in net profit to $6.2 million for the six months to October 13, compared to the previous period. This could be attributed to Sizzler sales revenues have declined, this time by a hefty 9.1%

While the KFC store sales growth was up 1.3%, they are also increasingly losing sales to rival Dominos(ASX: DMP)  and also fresh new outlets  like Nandos , SALSA outlets ,  and also New franchisees Guzman & Gomez, Grilld Burgers and Crust Pizza owned by Retail Food Group (ASX: RFG)

We like to recommend this  stock to our viewers , but as always  do your own research before you invest and also have a read od what the fools have to say over here .If  they BOOST their sizzler earnings  and give  a bit of plus to their KFC earnings as well  , this could be a  diamond in the rough.

COLLINS FOOD LINKS

Link to their –>   CKF First Half Results Presentation (28/11/2013)

Listed directors for Collins foods as of today

Mr Russell Tate (Chairman)
Mr Kevin Perkins (Managing Director, CEO)
Mr Stephen Copulos (Non Exec. Director)
Mr Newman Manion (Non Exec. Director)
Ms Bronwyn Morris (Non Exec. Director)

For more information on Collins Foods Limited, click here.

Sunday, November 03, 2013

Westpac beats the profit banks

Australian banking giant Westpac on Monday posted a 14 percent jump in full-year net profit with all their core divisions performing well, making it a a bumper year for the country's major lenders in the banking sector.

Westpac, the country's second largest bank, said all of its operations contributed higher revenue and earnings. They also said that there was stronger demand for home loans and solid growth in customer deposits.

Chief executive Gail Kelly said 'I am very pleased with our 2013 result. It demonstrates strength, consistency, careful balancing of growth and return, and disciplined execution of our strategy,'.

Earnings were Aus$6.82 billion (US$6.44 billion), compared with Aus$5.97 billion the previous year.These results follows a record annual profit reporting last week for ANZ Bank, up 11 percent to Au s$6.3 billion, and a 33.6 percent  jump to Aus$5.45 billion for National Australia Bank.

Sunday, August 04, 2013

Mining Expo | Diggers and Dealers 2013 Australia

The Diggers and Dealers is one of the major mining expo events in western Australia  that attracts many heavyweights and small time miners in the mining industry. Its been historically been held in the “mining town of kalgoorlie”  for years now.

EVENT DATE: Kalgoorlie 5-7 August 2013 - Diggers and Dealers Mining Conference 

Kalgoorlie is a historic gold mining town in Western Australia. It is also known as Kalgoorlie Boulder after its neighbouring township. The city was founded on goldfields in 1893 and 50 mines still operate in the district today, mining for gold and other minerals.

Australia Diggers 2012 Dealers Conference Africa Asia

Every mining town has its entertainment spots .In its golden days Kalgoorlie was filled with cowboys, gambling and brothels. Even Today there are adult entertainment venues specially for the mineworkers  with brothels in Hay Street, a major drawcard for Kalgoorlie tourism. Langtrees 181 is a renovated bordello, where each room has a different theme depicting the lives of the women who once worked here.

Diggers and Dealers attracts overy 2,500 delegates from the mining, exploration and professional services industries in Australia. This mining forum and gathering will be celebrating its 21stbirthday this year.

The keynote speakers for Diggers and dealers 2013 are

Feature Keynote speakers:

Mr Austan Goolsbee, former Chief Economic Advisor to President Obama will present the key note presentation on Monday 5 August 2013

Previous blog posts

Diggers and dealers 2011 – Here

Map of Kalgoorlie  Diggers n dealers 2013

Map picture

Restaurants OR PLACES TO EAT in Kalgoorlie for diggers n dealers 2013

kalgoorlie restaurant listing  diggers n dealers 2013

Pic from : http://www.diggersndealers.com.au/

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Ticket price and Attendance Fee Schedule 2013

Ticket Details Cost inc GST per ticket
Full Delegate Pass Includes access to the presentation sessions, exhibitor marquee, all day catering and 3 evening socials $1950
Limited Delegate Pass Includes access to all of above except the Wednesday social - Westrac Gala Dinner $1635
Day Pass - Monday or Tuesday Cost per day is $950 per person. The ticket includes access to the specific day's programme and the evening function on the particular day chosen. $950
Wednesday Day Pass Cost for the day is $850 per person. The ticket includes access to the specific day's programme but not the Gala Dinner. $850

 

 

 

 

 

 

 

 

 

In 1893 a bloke called Paddy Hannan cried ‘Eureka’ (or ‘Ouch, I stubbed my toe on a bloody big piece of shiny rock’ or whatever lucky buggers yell when they find gold) and sparked one of “Australia’s great gold rushes”. Kalgoorlie was born.

Tourist things to do in Kalgoorlie