stock at Stock Research

Universal Computer Systems Inc buys American company Reynolds and Reynolds Co. which is engaged in development of computer maintenance for the companies, selling cars, for 2.5 billion dollars. Such data contain in press release of Reynolds and Reynolds published today.
According to the signed agreement, Universal Computer Systems which also is engaged in development of computer maintenance will pay on 40 dollars for each stock of Reynolds and Reynolds, that on 14 % above cost of securities Reynolds and Reynolds on results of closing of the New York stock exchange on the eve. Besides it, Universal Computer Systems will incur obligations on repayment of duty of Reynolds and Reynolds for the sum of 300 million dollars the Transaction will be carried out in securities.
For financing purchase Universal Computer Systems will apply for the credit in banks Deutsche Bank and Credit Suisse. After end of the transaction the company will continue to conduct the activity under trademark Reynolds and Reynolds. Voting of shareholders under the transaction will pass in 4th quarter of this year. The transaction still should be considered by adjusting bodies of the USA. The termination of transaction is expected in the beginning of 2007.

State company Petroleos de Venezuela S.A. (PDVSA) has suggested private concerns to begin investigation and development of four new gas fields in the east of Venezuela. To participation in the transaction 36 companies, among which Chevron Corp., Exxon Mobil, Indian Oil and Natural Gas Corp., Chinese Sinochem, and also Russian Open Societies “LUKOIL” and Open Society “Gazprom” are invited.
Field reserves are estimated in 311.5 billion cubic meters. According to minister of oil of Venezuela Rafael Ramirez, PDVSA plans to 2010 enclose in prospecting project Delta Caribe 172 million dollars. PDVSA will belong from 30 up to 35% of stocks of each of gas fields. Licenses for investigation and development will be given by the end of November of 2006, and industrial production of gas will begin to 2012. In total PDVSA it is ready to invest more than 16 billion dollars, informs Associated Press.
In 2005 five licenses have been given out to the foreign companies, including Chevron and Brazilian Petrobras. PDVSA is measured to increase manufacture of natural gas in Venezuela. In territory of this South American country is located the largest fields on continent of “blue fuel”, however its manufacture does not satisfy its internal needs. It is planned to double gas recovery, which to 2012 should make 326 million cubic meters a day.

Group of investors buys the company on delivery of food stuffs Aramark Corp. for 6.3 billion dollars. There is a chairman of board of directors and executive director of Aramark Joseph Njubauer in charge of group of investors that buy Aramark. The group includes also private investment companies GS Capital Partners, CCMP Capital Advisors, JPMorgan Partners, Thomas H. Lee Partners and Warburg Pincus LLC. Investors will incur also obligations on payment of duty Aramark for the sum 2 billion dollars.
On conditions of the transaction, shareholders of Aramark will receive 33.80 dollars for each stock Aramark that on 2.3 % exceeds cost of stocks of the company on results of closing of the New York stock exchange on the eve. The transaction will be carried out in carry-over funds.
For financing purchase investors will apply for reception of the loan. Board of directors of Aramark has approved the transaction and is ready to recommend accepting to shareholders Aramark conditions of the agreement. In case of approval of the transaction by shareholders and adjusting bodies of the USA, the transaction will come to the end in the end of 2006, or in the beginning of 2007.
Aramark conducts the activity in 20 countries of the world. In the company work 240 thousand persons. Aramark carries out deliveries of food stuffs in hospitals, schools and on stadiums, informs Associated Press.

Over and over again I’m writing about prices for oil. This theme arouses interest of the majority of population of the Earth. The World prices for oil on July, 27th 2006 have considerably risen. So, on results of the trades at leading oil stock exchanges InterContinental Exchange Futures (ICE Futures) and New York Mercantile Exchange (NYMEX) the official prices of oil futures of the nearest month of delivery have accordingly made (London):
- IPE Brent Crude – $75.01 (+1.01) for barrel;
- Light Sweet Crude Oil – $74.54 (+0.60) for barrel.

This post is just a very little more advice about trade at the Stock exchange that I could collect.
1. Always pay more attention to behavior of the market and formation of price models, than to target levels and areas of support/resistance. The last can often cause that your correct opinion concerning the market will change prematurely.
2. When you feel, that it is necessary to take actions - either to open a position, or to leave it, - take actions immediately.
3. Never act against own opinion in occasion of a long-term trend of the market. In other words, do not try to sit on two chairs.
4. Advantageous positions, as a rule, have positive reassessment from the very beginning.
5. The correct choice of time for opening a position and an output from it (for example, a choice of the moment of an input on the basis of convincing price formations, an immediate output at the first sign of failure) can often save from greater losses, even if a position is unprofitable.
6. Intraday time decisions are almost always incorrect. Be not engaged in intraday time trade.
7. Necessarily check the markets before closing on Friday. The situation is often visible more clearly by a weekend. In similar cases the best price of an input or an output can be usually received before closing on Friday, than at opening a stock exchange on next Monday.
8. Dreams about the market can quite form the basis for actions (when memoirs on them unambiguously). Such dreams often come true, as they represent your subconscious knowledge of the market which makes the way through the barriers established by conscious thinking (for example, ” As I can buy here if I could open a long position on $2000 below last week? “).
9. You cannot have immunity from bad trading habits. The best that you can make is to suppress them. Day and negligence will quickly lead to their returning.

Every day not only investors discuss the changes in prices of oil, that’s why I think this peace of news is noteworthy.
So, the prices for oil</a> futures on July, 18th have continued falling. It was the second from the beginning of week falling of the prices for oil. And it was approximately same essential, as well as on the eve. Once again the prices have fallen more than to 2 %, but this time they have already left a mark $75 for barrel.
The official prices for oil were established on July, 18th on the marks as much as possible close to the lowest prices under transactions. Thus the price of oil Brent has remained a little above $74 for barrel, while the price of oil WTI (Light Sweet) was established below this level. Results of the trades at stock exchanges contracts of the nearest month of delivery have made:
- in New York on New York Mercantile Exchange (NYMEX) the official price of future Light, Sweet Crude Oil (August) has fallen off on 1 dollars and 76 cents (-2.3 %) and was established on a mark $73.54 for barrel. (The lowest price of closing more than for two weeks) at the prices under transactions for session $73.50-76.50 for barrel;
- in London on InterContinental Exchange Futures (ICE Futures) the official price of future IPE e-Brent Crude Futures Electronic (September) has fallen to 1 dollars and 56 cents      (-2.1 %) and was established on a mark $74.36 for (the lowest price of closing for a week) at the prices under transactions for session $74.30-77.29 for barrel.
But why have prices began to fall? For first two days of this week oil has fallen in price more than on 4 %. Development of a situation in the oil market was once again defined with atmosphere in the Near East. Participants of the conflict have continued on July, 18th an exchange of rocket and artillery impacts. And the Air Forces of Israel have made a strike on military base in Lebanon that for a while promoted a rise in prices on oil futures.
Nevertheless, by the end of day the price for oil have gone down under pressure of confidence (that have became stronger) of market participants that the conflict will not extend to Syria and Iran. Decrease in interest to purchases of oil futures was promoted by the announcement of the Secretary of State of the USA Condoleezza Rice that the arrangement on cease-fire in Lebanon will be soon reached. Reduction of prices on oil products on July, 18th also has proceeded.
Additional technical pressure upon the oil market has rendered on July, 18th essential falling of the prices for gold. So, despite of preservation in the world of geopolitical instability, gold this day has fallen in the price for 3.4 %. Oil and gold already for a long time bargain in pair, is persistent following one after another. Simultaneous falling of the prices for oil and on gold testified that large investors gradually deduce their actives from the market of commodity futures, considering that fact that the US dollar has grown for a week concerning euro more than on 2 %.

Yesterday when I read the news-block I thought why I couldn’t discuss the current news in my blog. So I’ve tried to find the most interesting news for investors.
Wienerberger Brick
The European Reconstruction and Development Bank have allocated Austrian Wienerberger 13.3 million euros for building and construction of brick-making plant in the Russian Federation.
 About it is spoken in the message of bank. The European Reconstruction and Development Bank has purchased 18.1 % of stocks of limited liability company “Wienerberger Brick” (Russia) for 2.5 million euros and has granted a loan in 10,8 million euros on payment of debts. The rest of means in construction (which total cost is estimated in 38 million euros) will put Wienerberger AG.
The factory will make nearby 120 million facing bricks per year or 220 million hollow bricks. The given project - a part of the joint program of the European Reconstruction and Development Bank and Wienerberger under investments into manufacture of building materials into the countries where the bank works.
The Austrian group company Wienerberger was based in the Vein in 1819. And now it is the world leader on manufacture of a hollow and facing ceramic bricks. The group company has more than 230 factories in 24 countries of the world.

Sadia
Company Sadia S.A., one of leading manufacturers of meat products and semi-prepared foods in Brazil, has proposed purchase of 50 % of stocks of Perdigao S.A for 1,7 billion dollars. Such data are resulted in the press release of the company published today. Cost of the transaction is estimated in 3.7 billion real (1.7 billion dollars). According to conditions of the offer, Sadia it is ready to pay 27.88 real (12.58 dollars) for each current stock Perdigao. Offered to Sadia price exceeds on 35 % cost of stock Perdigao on results of closing of the share trades in the San Paulo Stock Exchange. Term of the offer expires on October, 24th 2006. As it is marked in press release of Sadia, as a result of merge in the international market of meat products and semi-prepared foods there will be a new leader. Net profit Sadia on results of 2005 has been 656.12 million Brazilian real (307.88 million dollars).

Wimm–Bill–Dann
Shareholders of public corporation “Wimm–Bill–Dann Food stuffs” (WBD) at extraordinary meeting will consider the problem on expulsion of Jamshid Jadegardzham from structure of board. As they say in message WBD, it is offered to shareholders to consider the given question under the recommendation of chairman of board of the company of Toni Mahera. Only those shareholders have the right to take part in assembly, who was registered artificially of July, 2006. The Date of ending of reception of bulletins for voting is September, 1st 2006. Also it is offered to shareholders to approve creation of branches “Wimm–Bill–Dann” in Samara, Tuimazy, Novosibirsk, Rubtsovsk, Krasnoyarsk, Irkutsk.
Ownership capital of WBD is 880 millions of rubles. In circulation there is 44 million ordinary stocks (face value 20 rubles). The principle shareholders of the company as of end of 1st quarter of 2006 are Gabriel Jushvaev - 17,13 %, Sergey Plastinin - 9,30 %, David Jakobashvili - 8,33 %, Michael Dubinin - 5,71 %, in nominal holding of shares at Deutsche Bank Trust Company Americas is 39,99 % of stocks of the company.
Public corporation “Wimm–Bill–Dann Food stuffs” was created in 1992. And now it is engaged in manufacture of juices and dairy products in Russia. Into the company enter 30 industrial enterprises which are being 21 regions of Russian Federation and the CIS. “Wimm–Bill–Dann” owns the portfolio of trade marks covering from above 1 thousand of 100 types of dairy products (”Domic v derevne”, “Milaya Mila”, Neo, Bio-max, etc.) and more than 150 types of juices, nectars and soft drinks under marks “J7″, “100 % Gold”, etc. Net profit of public corporation “Wimm–Bill–Dann” on US GAAP in 2005 has increased for 31.7 % - up to 30.3 million dollars.

GoAir
Indian airline GoAir and planemaker Airbus have signed the agreement on purchase of 10 planes A320, press-service Airbus informs. Moreover the contract gives GoAir an opportunity of purchase in the future ten similar planes. The financial component of the transaction and terms of deliveries of planes are not informed.

Today I’d like to finish the story about Saint-Petersburg Stock exchange…
Kinds of the securities presented at the Saint-Petersburg Stock exchange.
The Share market has been presented in 1830 by:
- the state and city bonded loans which shared on short-term (till 1 year), long-term and termless (the original rent)
- continuously profitable, basically denominations in 100 thousand rubles.
- mortgage sheets and bonds of ground banks and private establishments of the long-term credit;
- bonds and stocks of the private companies (stocks were issued only by the commercial enterprises, and bonds as the state and bodies of city self-management). Bonds were issued basically by denominations from 100 up to 5000 rubles, termless loans - in 100 thousand rubles. Bonds and other securities with the state guarantee could not be a subject of Exchange frauds, unlike stocks of the private companies and other securities. Last third of XIX century the most popular were stocks of private railways. The share market of 1995 differs a little:
- the state securities;
- municipal bonds and loans;
- the securities emitted by commercial bank;
- stocks and bonds of the privatized enterprises;
- securities of the private emitters created outside of process of privatization.
The following - current liabilities. They are issued by the Ministry of Finance of the Russian Federation in the paperless form. The purpose is repayment of debts to the enterprises - suppliers to the state orders and mutual payment between the enterprises. Current liabilities become the securities after the term specified in the global certificate of release. Face value of 1 current liability is 1 million rubles, the fixed profitableness at repayment - 40 %.
During the same period of time have appeared Bonds of the State Savings Loan. They are issued in the cash form, face value from 100 thousand up to 500 thousand rubles. Four times a year the coupon income established depending on profitableness of state credit obligations (the State Short-term Obligations) is paid. Sale is made on auctions which are spent or in the form of voice (calculations between participants), or electronic (calculations directly with depository of the Stock exchanges) the trades. A securities market of 1830
- The state and city bonded loans,
- mortgage sheets and bonds of ground banks and private establishments of the long-term credit,
- bonds and stocks of the private companies.
Stocks of private railways are most popular; a securities market in 1992:
- the state securities,
- municipal bonds and loans,
- the securities emitted by commercial bank,
- stocks and bonds of the privatized enterprises, - securities of the private emitters created outside of process of privatization. The state securities are most popular.
Legal aspects.
Initially according to “the companies and stocks” of 1836: all Operations on the stock exchange have been forbidden by Regulations about, but already there was a law on obligatory use of registered stocks. In 1893 have been entered restrictions on carrying out of operations with securities without the share broker. Books of the share broker submitted to audit of the Ministry of Finance, and its chapter could dismiss brokers for abusing, not asking on that of the consent of Exchange committee. Without the permission of financial department it was forbidden to enter securities into the quotation.
On June, 27th, 1900 at the Petersburg Stock exchange the share department, as “a department which was laid down in special conditions of activity” has been created. The department submitted to the Ministry of Finance on especial office by a credit part which began to interfere with activity of the share market.
In 1907 Rules for transactions on purchase and sale of a foreign currency, funds and stocks at the Petersburg Stock exchange have been founded. The bulletin of a share department of the Stock exchange became the official document; the rates specified in it - obligatory for all Russian empire. Brokers were sworn, represented the mortgage and for execution of the transactions concluded at their participation, answered within the limits of data to them of decrees. For the infringements noticed by officials of the Ministry of Finance, could exclude from full members and regular customers.
Nowadays members of the Stock exchange representatives of broker firms, banks, associations, and the dealers, brought a share can be. Physical persons for membership in he Stock exchange should have the certificate of the state bodies on the right of carrying out of transactions with securities. All members of the Stock exchange should correspond to qualifying requirements. By position 1997 the number of members should be not less than 20. The input on a stock exchange is limited. Members of controls, officials, employees of the Stock exchange have the right of a free admission.
 Thank you for your attention and I hope this information will be useful…:)

System and Controls of the Stock Exchange.
The Principal organ of management of the Stock exchange was the Exchange committee - the elective body of Exchange merchant class. It was formed initially for supervision over safety of a new building of the Stock Exchange. With the course of time move to it all function of management, the solution of disputes, communication of businessmen and the governments.
Regulations of 1831 have approved behind Exchange committee the functions of commercial court, management of exchange affairs. At first the committee became an operating agency of the general Exchange assemblies. And since 1875 it was replaced by assembly of member of the city duma (80-150 elected persons).
The structure of Exchange committee (it was approved by above mentioned regulations) included 3 merchants and 3 brokers, was presided by “Mayor”, which headed the Municipal duma. The modern control system is much more complex. It has a great number of committees and departments where a plenty of people is working. Specialization in the decision of separate questions is useful, but on the other hand to the persons bearing the responsibility for activity of the Stock exchange as a whole, can be hard, follow actions of each part of the complex administrative mechanism. Collective nature of departments allows considering in more detail problems and questions, than if departments consisted of one person since people have an opportunity to unite the knowledge, experience, to offer some various decisions of any questions. However, there can be disagreements, and the majority is not always right, and the chief can be mistaken, choosing the correct decision.
In all control systems, beginning with Exchange committee, the basic controls were kept: GENERAL ASSEMBLY which selects EXCHANGE ADVISORY COUNCIL (ASSEMBLY of TOWN-COUNCILLOR). It in turn chooses representatives of BOARD (EXCHANGE COMMITTEE). The truth the PRESIDENT, unlike CHAIRMAN, is the person chosen by board, but the post from it has not changed.
We shall consider functions of the above-named controls:
General meeting of members of Stock exchange is the supreme body of management of the Stock exchange. The decision of following questions concerns to its exclusive competence:
- the statement and change of the charter, balance and other documents;
- an establishment of the sizes of all necessary monetary gathering, sizes of tariffs, payments for exchange services, the sizes of penalties;
- election of members of controls of Stock exchange;
- consideration of complaints to the decision of advisory council of the Stock exchange and boards of directors;
- the statement of the order of a payment and official salaries of the personnel of the Stock exchange.
The functions of Exchange Advisory Council of the Saint-Petersburg Stock exchange:
- an establishment of dates and time for Exchange assemblies;
- drawing up and the edition of rules about the order of carrying out of operations with securities, instructions for brokers on conducting books;
- definitions of the form of bulletin of the Stock exchange;
- an establishment of the size, the order and terms of deductions from a commission of brokers and regular customers of the Stock exchange, payments from visitors;
- the sanction of an assumption of securities and the quotation on the Stock exchange;
- the resolution of disputes, operations arising at carrying out with securities;
- reception and exception of members of the Stock exchange;
- estimating of incomes and charges of the Stock exchange and reports on their execution;
- granting to bodies of local authorities and the government of data and the analytical conclusions concerning development of the financial market.
Also some functions of a higher body can be assigned to Exchange Advisory Council of the Saint-Petersburg Stock exchange.
Board of directors is the executing agency of the Stock exchange. To its competence concern:
- the organization and a management of activity of the Stock exchange and its subdivisions;
- development, change and entering on the statement of General meeting of members of the Stock exchange and Exchange Advisory Council the documents regulating its activity;
- a suspension for the period of exchange trade, in case of if the prices of current transactions on the stock exchange deviate quotations more than on certain Stock exchange size;
- the order of property of the Stock exchange;
- the statement and change of the size deposited in a settlement payment of the mortgage and the liquidating credit;
- hiring and dismissal of personnel of the Stock exchange;
- imposing of penal sanctions.
Functions of Board of directors are carried out by executive committee. It is necessary to mention and the Revision committee. It carries out the current control for financial and economic activities of the stock exchange. Its functions are:
- check of a condition of money resources and property, and also office-work of the Stock exchange;
- drawing up of the report to General meeting about results of audit.

Stockjobbing.
In stockjobbing everyone played their own role. “Aces” set mood of day, giving orders to brokers. Their intentions defined actions of others.
If “the weak mood” (the offer exceeded demand), the “side scene” operating at own expense prevailed, hastened to sell the securities then to redeem them, still, more cheaply, but, bankers, waited, the further downturn that forced the speculators who have bought securities in hope for increase, urgently to sell out them. Brokers started to buy the necessary securities; they were followed with “side scene”, buying papers to sell them when the prices will rise.
In a return case “bulls” started to operate. They added the price and bought up securities, selling them after under higher price. But in parallel with them bankers operated also, the prices grew, but by the end of day of the price were usually stabilized.
Platform. Here played on a difference of rates. Some times for Exchange day intermediaries left on platform and informed on movement of the prices. Intermediaries used that their data cannot be checked up, well and clients could refuse the given assignments at any moment.
“American” is a stock exchange on which it was possible at any moment “to liquidate all unprofitable obligations and to disappear in unknown direction”. In the beginning similar assemblies passed furtively on the Neva prospectus - in the street or in money-change shops (for example, Nikitin’s office). Later all took place in extensive convenient premises.
Data about game on modern Stock exchange are not present, but I do not think, that the little changes took place. Always there are those who speculates on downturn/increase and always to own advantage.

Systems of trade.
The System of the trade by securities, since time of separation of stock exchange from commodity one, constantly changed.
Initially all transactions consist brokers at personal presence of people. Large Stockbrokers, appearing, gave orders to brokers, divided operations among themselves and started to operate. But a plenty present, noise and confusion, false movements, demonstrations, sometimes led to some misunderstanding. For example, on the different ends of hall transactions on the same security under the different price consist.
After the conclusion of significant transactions public gathered in some dense circles where there was a trade on running securities. The form of carrying out reminded auction - the prices were specified. Finally established they were considered after the first call. The second closed an official stock exchange.
Full members of the Stock exchange submitted a note about arranged deals which each broker has been obliged to bring in the books and bulletins, but this rule was quite often broken. Operations proceeded on platform where within day intermediaries informed data on the prices, mood, etc., quite often deceiving gathered there, in own purposes.
As there was one more kind of an informal Stock exchange - “American”. Behind the frauds occurred there to follow it was impossible, there were no legal guarantees.
After creation of an official share department not only system of the trade has changed, but also public of an institution. Its valid members - plenipotentiaries of commercial banks, bank buildings and offices - possessed exclusive rights: to operate without brokers, by proxy (no more than one) and improvised (no more than two). Advisory council of a share department consisted of these people and brokers; they informed given quoted commissions for drawing up of bulletins. The right to conclude transactions through brokers had regular customers, persons of 1-st trade guild of Saint-Petersburg. Visitors of a department could be only observers.
(to be continued…)

Investors buy stock for one simple reason: to make money. The surest way to earn money from investing is to create as di¬verse a portfolio as possible and hang on to it for a long time. To succeed at making money investors need good sources of infor¬mation.
Stockbrokers supply much information. They study market reports and get information on the forecasted financial performance of companies. Brokers usually recommend oppor¬tunities or provide special services such as newsletters. For this brokers charge additional fees.
Sometimes investors prefer to avoid high brokerage fees. They implement their own investment strategy. Serious investors sub¬scribe to investment newsletters and carefully study the stock market. Best investors become an expert in a particular industry.
A simpler investment strategy is to choose some reliable blue chip stocks and stick to them. This strategy is safe and can earn money over the long run. Investors should avoid making com¬mon mistakes, which are:
1) failure to diversify,
2) paying too much for a stock which would not go up,
3) not knowing when to sell a stock going down,
4) paying too much attention to ru¬mors and tips.
There are also several techniques of predicting the stock prices. Most investors begin with fundamental analysis, which is the process of comparing a company’s current financial position and future prospects with those of other firms in the same or different industries. Some investors usually called “chartists” try to identify a specific stock’s behavior charting it over time and then predicting its future price movement. Other investors be¬lieve that prices are random. The random walk theory is based on the assumption that future stock prices are independent of past stock prices. They choose stocks at random. A group of investors has adopted an unusual approach, contrarianism, which holds that the market will move in the direction opposite to that predicted by the general public. In other words, these investors do the opposite of what the general public does.

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