Some investors see Tepco as too big to fail - Wall Street Journal

TOKYO - day traders and hedge fund superbly taken advantage of volatility surrounding the actions of the Tokyo Electric Power Co. immediately after the earthquake could soon be replaced by a different breed of investor : asset managers long only to research to reinvest in Tepco, on a bet that in the Japan will leave the utility go bust.

Daisuke Iketani, a 30 day trader in Tokyo, the volatility of the Tepco shares after the March 11 earthquake provided a rare golden opportunity: he made a profit of 2 million to ￥ ($ 24,500) especially through a flurry of orders short as the stock plunged briefly to level earthquake ￥ 2,100 to below ￥. 300, decimating the 80% of its market capitalization. Thursday, shares increased by 3.2% to ￥ 425.

"If you are a day trader, is a great temptation to invest in a stock like that," said investor retail Yuuki Hakamata, citing sharp price movements and the massive volume.

In the wake of the initial panic sale stung by concerns of radiation leaks crippled plant nuclear power of Fukushima Daiichi company on the northeast coast of the Japan, mysterious trades also emerged.

March 30, an unidentified investor purchased shares of Tepco 40 million dollars - evaluated about 18,17 billion from ￥-in last 10 seconds before the close of trading at ￥ 466, according to several traders at major brokerage houses. It remains uncertain whether the position is still detained, but much of market players speculate that investors unloaded position after shares staged a rebound in the short term in subsequent sessions.

While it remains one of the stocks most actively traded on the Tokyo Stock Exchange, trade Tepco shares has stabilized recently. Volume decreased by 90% from a high of 303 million shares registered on 6 April, undermining the appeal for speculative traders cashed on volatility.

Many investors believe that Tepco is too big to fail, and the Government is developing a framework to support the ongoing disaster utility through the nuclear crisis. This is what has prompted some managers of assets based in the United States to invest in the stock and reassess their assets.

"At the beginning of April, a long couple of buyers were coming and buying the stock, said a trader at a foreign brokerage.". One other Fund Manager in the business of Japanese asset management has added this asset based in United States, managers seem to be placing long orders, adding that investment has not come to pension funds, either the United States or of Europe.

Market experts say that the key to the feasibility of an investment in the shares of the company's long term will depend on the scale and timing of the recovery of the company will be obliged to pay to the victims of the nuclear reactor accident andmore importantly, how the Government is ready to provide financial assistance to facilitate the survival of the Tepco in the crisis.

"Markets despise most is uncertainty so that the Government should clarify its position, said Mana Nakazora, analyst credit Chief at BNP Paribas Securities in Tokyo."

She added that local media reports suggest a chance more than corporate bonds and stock of Tepco retains some value.

"It would be possible to invest in the stock, once the value of the business can be estimated through more clarity on how much and how much time he will have to pay for compensation," said Naoki Fujiwara, a manager of funds to Shinkin Asset Management Co.

But Mr. Fujiwara, who removed Tepco to its portfolio, after the earthquake stated that another essential question is how shareholders should assume responsibility. Even if the actions are not removed from the list, he said investors remain nervous about the persistent risks of reduction of capital and dilution.

On Tuesday, Tepco held his first briefing for institutional investors and analysts since the disaster, but the return of the so-called traditional long community should be further on the road from their main incentive to invest in the stock had been high dividends, which will likely be demolished for the years to come.

The arm of management of the assets of the largest Japanese life insurer Nippon Life Insurance Co. removed Tepco shares in the portfolio of one of its funds. Nippon life is also one of the largest investors in Tepco suite Dai - ichi Life Insurance Co., which recently said it expects to book a special loss of approximately 100 billion from ￥ due to its portfolio of shares in the utility. Business investment management based on United States AllianceBernstein Holding LP also dressed its weight on Tepco at "the lower end of an active position significant" at the end of the month of March.

"I don't know yet if I can buy the stock, even though I am still active as a Fund Manager." Perhaps I'll buy a single share after retirement, "said a Japanese institutional investor.

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TEPCO LNG must jump as rewrites Japan policy: energy markets

April 20, 2011, 9: 00 am EDT by Shigeru Sato and Yuji Okada

April 20 (Bloomberg)--Tokyo Electric Power Co., about a quarter of the Japan of electricity producer, can increase imports of natural gas liquefied by 50 percent to compensate for the output lost as a result of an earthquake and tsunami of last month.

The closure of 14 per cent of the capacity of the company will force to stimulate foreign LNG purchases by 5 to 10 million tonnes per year in three to five years, a survey of Bloomberg News four of traders and analysts. Extra cost may be 500 billion yen ($6 billion), based on the data of Ministry of finance for the average price of last year.Tokyo Electric is trying to contain leaks of radiation at its plant in Fukushima Dai-Ichi in what became the worst nuclear accident since the collapse of Chernobyl 1986, in Ukraine. The utility, known as Tepco, is also being advocated by the Government to take measures to avoid blackouts in the capital and eight surrounding prefectures, a region which account for approximately 40 per cent of the domestic product gross of the Japan. "A change to fossil fuels like oil and natural gas will be accelerate in the years to come as the Japan will be forced to rewrite its energy policy," has said Hidetoshi Shioda, analyst at SMBC Nikko Securities Inc. in Tokyo that predicts the Japan can raise LNG imports by 10 million tons per year over the five " next years. Before the earthquake, policy "aimed to revive the dependency on nuclear power and dependence of cutting oil."Natural gas GainsWinter-delivery of award to the United Kingdom, the reference for spot in Europe prices, increased by 8.3% since the eve of the disaster, according to the price of the broker on Bloomberg. Gas for delivery in the six months to October increased by 0.8% to 72.25 pence a therm, equal to $$ a thermal British units, as of 1 h 50 million in London today. LNG is cooled to about minus 260 degrees Fahrenheit (minus 162 Celsius) gas for shipping in liquid form between locations not connected by pipelines.TEPCO bought 20.4 million tons of LNG by 2010, according to data from the company. It is 29 percent of whole the Japan of 70 million tonnes imports, data compiled by the Ministry of finance show. The Tokyo-based company has about 26 000 megawatt generators powered the gas, or 40% of the overall capacity of the company of 64,487 megawatts.TEPCO, which lost 78% of its value since the earthquake on March 11, can install gas turbines in existing power plants and construction of gas generators on the coast of the Pacific Ocean to try to combat the shortage of powerShioda of the SMBC said.As a first step, the company expects to add 112 megawatts of engines to gas at its plant in Sodegaura thermal power in July and 668 megawatts of gas turbines at its site in Chiba in August, the company said on April 15. The utility is designed to install an other gas turbine of 334-megawatts to Chiba in August next year.Nuclear ReviewGeneral Electric Co. Chief Executive Jeffrey Immelt unveiled a plan on April 4 to help energy shortages address Tepco.Le March 31, the Prime Minister Naoto Kan said that his Government plans to review the revised in June of last year's national energy plan. The plan includes building nine new reactors by 2020 and to raise utilization of existing reactors at 85% per year of approximately 60% in 2008, according to a copy of the energy policy posted on the website of the Ministry of trade. It also calls on five additional reactors by 2030.Generating one megawatt of electricity to a gas generator can require 1,000 tons of LNG per year, according to two of the four surveyed merchants. One megawatt is enough to power 800 US households, according to estimates of the Department of energy in Washington.Outage ThreatThe Fukushima Dai-Ichi and Fukushima Dai nuclear stations combined capacity - or be 9,096 megawatts, or 14% of the total of the Tepco, according to the data of the company. Plants were closed after the magnitude 9 quake, of the strongest on record of the country. The Japan has a maximum output of 281,099 megawatts, including internal generators to factories, according to data compiled by the Federation of the Companies.Tokyo of electrical power and the neighbouring prefectures eight - zone Tepco supplies - can have a shortage of 15 000 MW should temperatures approaching the level of last year this summer. Kan's administration to propose conservation plans that invites companies to reduce 25% energy consumption has prompted by the threat of blackouts this summer.Generally, the summer of the Japan begins from the end of July and lasts about three months. The country has experienced its hottest summer at least 113 years last year.

-With the help of Alexander Kwiatkowski Singapore and Ben Farey in London. Editors: Alexander Kwiatkowski, Rob Verdonck

To contact the reporters on this story: Shigeru Sato in Tokyo at the ssato10@bloomberg.net; Yuji Okada at Tokyo to the yokada6@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji in csomayaji@bloomberg.net-0-Apr/20/2011 12: 56 GMT

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President TEPCO faces budget - Xinhua Committee

(BEIJING, April 19 Xinhuanet.com) - President of Tokyo Electric Power Company, Masataka Shimizu, has apologized for the disaster of Central Fukushima nuclear company.

It is the latest in a string of moves by the company, to appease public anger over the incident. Stuttard Matte has more.

Summoned to deal with the meeting of the Committee of the upper House of the Japan Budget.

Masataka Shimizu made his first appearance before legislators since the disaster broke.

And the look of unease was evident, because he was harassed and mocked.

Masataka Shimizu, TEPCO President, said: "I again deeply apologize for causing so many problems for residents near the complex, the people of Fukushima and the public, of the accident at the nuclear plant of Daiichi Fukushima.".

Shimizu apology comes after the resignation of company President Tsunehisa Katsumata. There is growing speculation that the President will follow him soon.

Before leaving the Katsumata announced premier card detailed road of the TEPCO to bring reactors of the nuclear plant under control within six to nine months.

Two-step plan is to first stabilize the installation and then limit the release of radioactive materials.

Tsunehisa Katsumata, former TEPCO Chiarman, said: "with regard to the timetable for achieving these objectives, there is all kinds of risks involved." However, we hope to achieve stage 1 on three months. We hope to achieve step 2 within three to six months. As we receive more specific goals, we will announce them. ?

According to Adviser a Government, the Japanese Government will closely monitor the implementation of the plan of TEPCO and hope that it can be done in advance.

But even with the announcement of the chronology, it is known when evacuated would be able to return home.

Last week, TEPCO announced plans asked the Government to give each household evacuated approximately 12 - thousands of US Dollars in interim compensation. But many evacuated people say that the offer is far from sufficient.

Analysts believe its road map and of the TEPCO pay plan only address concerns in the short term. In the long term, there is concern that the crisis could create a continuous for the Japanese economy.... negative spiral with the possibility of impact on the pace of the recovery of the financial world.

Special report: Quake Massive shakes Japan

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Japan eyes state-backed insurer to save TEPCO -Nikkei - Reuters

远程服务器返回了意外响应: (417) Expectation failed。
远程服务器返回了意外响应: (417) Expectation failed。

* Plan calls for fund to facilitate compensation -Nikkei

* Funded via govt-backed loans, premiums from utilities -Nikkei

* TEPCO would issue preferred shares to fund -Nikkei

* Fund would recoup investment via TEPCO dividend payouts -Nikkei

* TEPCO to hold news conference at 0400 GMT (Updates with details)

TOKYO, April 15 (Reuters) - Japan may set up a government-backed insurance fund to inject money into Tokyo Electric Power and facilitate compensation payouts stemming from the disaster at its Fukushima Daiichi nuclear plant, the Nikkei newspaper reported.

The plan, the latest of several that have been floated within the government, aims at saving Tokyo Electric from financial ruin by having the government initially shoulder an expected massive compensation bill, which the utility will repay over several years via dividend payouts, the paper said.

Tokyo Electric, Asia's largest utility also known as TEPCO, is yet to determine compensation costs after the March 11 earthquake and tsunami tore through its plant in northeast Japan, causing radiation leaks and forcing local residents and businesses to evacuate.

The company said on Friday it will hold a news conference at 0400 GMT on provisional compensation payments.

JP Morgan has estimated TEPCO could face 2 trillion yen ($24 billion) in compensation losses in the current financial year that started this month, while Bank of America-Merrill Lynch has said the bill could reach $130 billion if the crisis drags on.

Under the draft plan reported by the Nikkei, the government would set up an insurance fund that would be funded by government-guaranteed loans from private banks and premiums from other utilities that operate nuclear power plants.

The insurance fund would handle the initial outlay of compensation payments, which would be recouped through dividend payments spread out over several years from TEPCO on preferred shares to be newly issued to the fund, the Nikkei said.

The reported plan is the type of support that S&P analyst Hiroki Shibata said he assumed when the rating agency cut TEPCO's debt rating to BBB+ on April 1.

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TEPCO said plan three months of cooling to Fukushima

6: 39 Pm EDT by Jason Clenfield, April 14, 2011

(Adds comment from President NRC in ninth paragraph).

Estimates of Tokyo Electric Power Co. April 14 (Bloomberg) — the fight to stabilize its Fukushima crippled reactors will last until June, leaving the plant vulnerable to more replicas and radiation leaks, said that someone informed on the business plan.Tokyo Electric engineers have rejected a proposal to flood damaged its plant reactors, which could reduce temperatures in days rather than months, depending on the person, who asked not be identified because he is not allowed to speak to the media. Instead, the utility is pumping water and evacuation off the coast of steam, a method called "feed and bleed."Since the magnitude 9 earthquake and the tsunami struck the Fukushima Dai-Ichi station on 11 March, there are hundreds of aftershocks, including one this week that disabled the power of the plant and cooling systems for up to an hour. As the crisis drags on, there is the risk of new accidents, said Pierre Zaleski, former member of the French Atomic Energy Commission. "" The problem is these aftershocks, "says Zaleski, Executive Director of the Centre for the geopolitics of energy and materials to the University of Paris Dauphine. "You never know if it has more replicas and containment may fail - perhaps not completely - but these structures have been weakened."Bad PublicityTokyo electric is reluctant to flooding of its reactors because the move would generate bad publicity, said the person. Flooding would increase the amount of contaminated water that gets into the ocean and also raise the possibility of explosions of hydrogen more within the containment, the person said.Workers may not start the process of decommissioning of four reactors reversed the plant until the temperature and pressure were overthrown. Cleaning of the catastrophe, which has forced the evacuation of hundreds of thousands of people living within 20 kilometres (12 miles) from the plant, could take several decades and cost more than 1,000 billion yen (12 billion dollars).The main danger to the plant is reactor No. 1, where the temperatures and pressures are still high and the water level is low, the person said. In the heart of the reactor water levels fell yesterday, according to data published by Tokyo Electric, leaving 1.65 metres of fuel rods exposed to air, where they can heat and melt, releasing radiation pressure vessel.20 centimetersWhile Tokyo Electric plan for ending the crisis said get presentations of the fuel rods covered by water is a stabilization measure, as the person informed on the document, shows data from the utility pumping efforts have failed to raise the level of water more than 20 centimeters within 35 days from the beginning of the disaster.Failure to raise water levels is part of the reason to the United States Gregory nuclear-Chairman Jaczko Regulatory Commission this week called the situation "static", rather stable. "Significant additional problems" could still occur at the plant, he said at a hearing of the Senate Environment and the Committee of the work public April 12(a) combination of make-shift of pipes of fire and pumps used to cool the reactor is not providing enough water, according to the person. Measured temperatures 204.5 degrees Celsius (400 degrees Fahrenheit) in the cause of ship yesterday, or twice the boiling point, the water into steam, creating a sauna-like cooling system that is less effective, the person said.Days, not MonthsFlooding space between the pressure vessel, surrounding confinement can even cause temperatures in days rather than months, as the person.While Tokyo Electric has not announced a line of time to resolve the crisis, the person said that the utility has drafted an internal document, two weeks ago, called the "Tepco short/medium/Long Range stimulus" whose goal is to have stabilized at the end of June.Tokyo reactors Electric President Masataka Shimizuspeaking publicly this week for the second time since the beginning of the disaster, said a schedule to cope with the crisis "will be presented soon."Shimizu spoke to journalists a day after a magnitude-6 temblor, 6 disturbed Fukushima power for 50 minutes, definition return strives to cool reactors at a plant already weakened by explosions and of Earth and the tsunami of last month's earthquake. "We will study ways to resolve the crisis and obtain the support of the United States and the France,"Naoyuki Matsumoto, spokesman for the utility, based in Tokyo, said yesterday." He refused to comment on the specific measures envisaged.The utility decision makers walk the tightrope between risk, said David Lochbaum, a professional engineer nuclear safety in the Union of the scientists involved in Washington, D.C. Although floods could cause weakened containment structures to break, a process more slow has also disadvantages, said. "They are to return to a situation where they have more control,"he said, referring to the progress made in the restoration of the roads and the power plant." "The downside is that a surprise or a slippery could cause things worsen."

-With the help of Yuji Okada at Tokyo. Editor: Bill Austin

To contact the reporter on this story: Jason Clenfield in Tokyo at the jclenfield@bloomberg.net

To contact the editor responsible for this story: Peter Langan to plangan@bloomberg.net

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