Readings: The Mortgage Freeze, Sensex earnings, Infrastructure investments
- Calculated Risk: Ten things to know about the Freeze
9) The Paulson mortgage plan does not violate any contracts.
Tanta nailed this immediately: The Plan: My Initial Reaction
7). These are not teaser rates.
The freeze rate is usually in the 7% to 8% range. Some people hear “teaser rate” and think 1% or 3%. Nah.a
1) For the Home Builders: Nothing.
There is an investment myth that this freeze will help the homebuilders because there will be fewer distressed homes on the market next year. This seems silly. The homebuilders are getting crushed because of the current inventory levels.
Realty giant DLF and gains from merger and acquisitions (M&As) by Indian blue-chip firms will help boost the earnings growth of Sensex companies by 11% this fiscal year, according to global financial major Citigroup.
Citigroup Global Markets, the brokerage and equity research arm of Citigroup, has said it was revising upward the earnings growth forecast for FY07-08 ending March 2008, to 33%, from 22% previously. It said that DLF was expected to report earnings growth of 218% in FY08 and another 43% in FY09.
What does that put the cumulative Sensex EPS for 2007-2008 at?
- Economic Times: Bright future for private infrastructure companies
On the back of the huge infrastructure rollout and an improving external environment, analysts estimate a Rs 4.2 trillion opportunity for private sector players over the next five years.
Bulk of these private sector investments are expected to flow to power (Rs1.63 trillion) and road (Rs1.1 trillion) segments, companies which are expected to benefit the most . . .
Political consensus on infrastructure development is expected to drive investments of Rs 17,289 billion in the sector over the next five years, the brokerage estimates. Budgetary constraints, coupled with an improving external environment, are attracting private investments into the sector. It expects private players to fund 25%, or Rs 4,246 billion, of the total infrastructure potential.
Yes, I love numb3rs 
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