Good morning,

We are now in the Twilight Zone. This is the eye of the storm between Greek elections. We will emerge after they have voted on June 18th .So until then the bureaucrats will bribe and cajole the good voters of Greece into accepting their dose of austerity medicine. The rumours of Euro Bond issues were scuppered by Germany who ultimately decides what’s what as they are the only ones with any money..So whatever they say goes.
Over the water the US market shrugged off a Japanese Sovereign downgrade and pushed ahead before succumbing to the inevitable later in the session. Good housing numbers helped too but Dell’s numbers after the bell will hurt the market.
The faceplant fiasco continues as the stock got walloped again last night and it not even allowed to be shorted yet..just wait till Jim Chanos gets hold of this one. it’s now down to 31 bucks and everyone is blaming everyone..I blame Gordon Gecko..”Greed, for want of a better word, is good!”

Now the lawyers are getting into the action and suing everybody after the NASDAQ stuff up and the unbelievable action of Morgan Stanley who were downgrading numbers for the company during the roadshow!!!Thought I had seen it all…but no I was wrong as yesterday we had the pleasure of seeing a Social Media hopeful from Australia pitch to us..amazing valuation..good luck guys..If it’s worth $53m I am a Zuckerberg’s long lost Uncle..no revenue projections, no subscriber numbers ,no web hit numbers and $53m..really!!

I digress ,yesterday our market defied my prediction and opened firm, wobbled then gathered its spirits up and pushed higher, It was a broad based rally with all sectors doing fine..nice to see. I still remain a fan of the sell into strength if it continues, as I truly believe Europe will get worse! The Aussie Dollar has slipped below 98 cents and I feel that we could see 95c but I am no currency trader.

So where to from here?..remain cautious..avoid getting sucked in as one seagull said to the other at Sydney Airport…if the dust clears and ‘Zombieland’ gets better there will be plenty of opportunities to make money as we move out of the Twilight Zone..so like buses there is always another one along soon..

Assume the worse ..hope for the best!

Things that make me go mmm!

1.faceplant slip again..so many brokers got carried away with this one and asked for too much stock and then got it..Thoight they would be scaled back but no we will just give you more..more ,yes Oliver More!!
2.facebook isn’t a shorting stock yet but funds that are long faceplant are being attacked and they are being shorted!
3.Lovely article from Boris Johnson, or Dick Wittington of London about ‘Zombieland’ here.  ‘PUSS in BOOTS’
4.If you want to know what the state of the white collar jobs market is go to a Ex-Mac Bank Networking meeting..so many haven’t found gainful employment after they were let go last September!
5.Good to see Qantas split in two..bit like the good bank/ bad bank thing..Overseas/Domestic! Genius Alan so much easier to sell one off then!
6.Gold eases back-OECD says Europe faces severe risks and downgrades growth..there’s growth in Europe..who would have thought!
7.SPI down 20.Interestingly I had a long chat with a guy that writes computer trading programs.He was so upset that all the margins have gone out of financial markets with computers tightening all the opportunities up.
8.Had another chat with a broker who devises weird and wonderful instruments to sell to punters..No wonder the World is in a mess!!Didn’t understand a word he said..God help the punters!
9.Navaho Gold yesterday cuts its MD’s salary as its trying to cut costs..the bloke got paid $350,000 to run a $4m gold exploration company…shares have gone from 20c to 3 c!!!Dig a few holes and get $350,000 you have got to be joking..Our PM doesn’t earn that much..no wonder he is getting his salary chopped.Some might say that Julia isnt worth that much but there you go..
10.And in other sad news ,Drogba is leaving Chelsea..come on Tores time to shine!

NAB go Ex Div soon for those dividend hungry investors..3 divs in 13 months can be a big incentive..around 10% fully franked yield..not too shabby…Look at buying back in to TLS around 3.45 ish to start .

Enjoy the twilight zone..sorry no joke today..only Facespace!

Clarence

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