Good morning,

As we head towards a resolution in the Greek tragedy one way or another, over the other side of the ditch, Uncle Ben was talking about unemployment in the US. Despite recent good figures, he believes that the official figures mask a greater underlying problem especially with people dropping out of looking and the long term unemployed..he was telling us that thing ain’t quite so rosy after all and that he will keep the presses fired up despite the fall in the headline numbers..good for Gold and other commodities. Investors faced with the prospect of low returns on bonds and fixed interest investments are piling into equities in the US..The Dow is now nudging 13000..highest it’s been since 2008!Ah those were the days my friend, we thought they’d never end!!

We will get dragged up as well. No question 4500 is achievable!

Yesterdays surprise move by the RBA took the heat off the banks who would never have passed on the cut anyway! But I was certainly puzzled why the Reserve Bank is now basing interest rate decisions on our economy on the US jobs numbers and Chinese output…by the time the RBA wakes up to the fact that Australia is heading down fast in all except mining then it will require more drastic action..the structural shift in our economy is happening the high Aussie dollar is taking care of that..in the end we need to get smart and not just become a big sand pit full of expensive Tonka toys!

News  of the merger to create ‘Glenstrata’ will put the spotlight on big miners like BHP and RIO..there is now another Gorilla in the room…BHP reported today..maybe a tad underwhelming! but is a lot of money $9.2bn..they could buy Greece!!. Yesterday’s report from my old alma mater, Macquarie Bank shows just how things have gone downhill. Morale must be atrocious..I was surprised that the market didn’t slaughter them but I guess they like cost reductions and buybacks..I would continue to avoid this one..if there is a market pick up there will not be anyone left to take advantage of it!!Everyone else seems to like it..I don’t ..when does someone ask why Nick Moore is still MD..any other company he would have been sacked years ago!!

I recently send clients a list of speculative stocks I like..they are doing pretty well in a week..up nearly 70%!!!If you are interested in my picks happy to send it again!

TLS hit 3.43 yesterday..not sure what’s driving it apart from impending profit numbers and dividend but it’s been a great ride from 2.80 when I first started pushing them..I would be looking to reduce a little especially if they hit 3.50!!

I have enclosed a NAB research piece after the figures yesterday..looks ok here but UK holding them back…I continue to like this turnaround story..

We also saw COE yesterday..very impressive and have included a small research piece I have written on the stock..now I am no analyst so figures are a little arbitrary but management is the key and finally it looks like they have the right man now!!!

Have a good one!

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