Good morning,

Another positive lead from overseas so expect our market to rally 30 odd points today…still extremely puzzled why the VIX(fear index )is 20, the Dow is 12,500,the FTSE is 5700 and the ASX 200 is 4150…aren’t we supposed to be in the middle of the biggest resource boom in generations…not sure why then we are languishing and moribund. Volume yesterday was pathetic again at $1.5bn….not much for brokers to celebrate at the moment with stories that RBS are about to call it quits here! Anyway last night around the World ,equities rallied ,commodities pushed higher and the World was happier place-for now!

China has been rallying strongly in the last few days and this may be a really positive sign for our market

Last year, it posted its smallest annual trade surplus since 2005, suggesting it’s becoming less reliant on exports.

TLS pushed on to the 3.40 level yesterday which was my target..I am a happy holder but if we get more good news out of ‘Zombieland’ then they may get a little left behind as appetite returns for risk assets..TLS has14 cent divvy coming up in late February though will keep investors happy..I am also expecting a nod from ACCC on the separation of the Copper business from the rest of it…one interesting thing I read was that the use of ‘SIRI’ which is the new iphone personal assistant doubles the data usage..now Apple will not be the only ones trotting out intelligent voice activated helpers, so this trend will continue and Telcos will certainly benefit..certainly chatting to one of my IT buddies on the golf course on Saturday as he hit another immaculate drive(don’t you hate that),he was pressing home the dominance and scope of the cloud..everything will live in the cloud in the next few years and those companies that are connecting users to it will benefit..think TLS,MAQ,MTU and even little old BGL..

As for the rest of the market, Cecil Rhodes founded a country and made his fortune by selling shovels to miners in South Africa…one that has caught my eye is NWH currently trading around 2.50..it is a mining services company and has just announced a substantial upgrade and new coal mining contract..it has a prospective yield of around 5.5% for 2012 and is trading on a p/e of just under 10..would expect the price to move back towards the $3.00 level in the next month or so..I have enclosed a little piece on it for your enjoyment.

Also may be time to have another peek at FMG as guidance on increased production (up 9-13%QOQ)looks like being met…takeover of African Iron will also help the sector.

The index is currently around 4150 and I would expect us to push up to 4300 in the next few weeks on very light volume and then see how it looks ..but we are certainly cheap compared to the overseas markets…’get back in there and buy Mortimer’

 

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