Morning all,

Last night Billabong was approached by TPG with a cash bid at $1.45..I have been harping on about this one for weeks and for those of you brave enough to get in around $1.00-1.05 its going to be a good day!Well done..it’s hard to make money in this market but this was nearly a gimme! Adam Scott could have done with one like this…

Anyway on to more prosaic matters and ‘Zombieland’ is back in the news..Spain is close to bankrupt, Greece is history and things are looking decidedly dodgy again in the land of the walking dead!On Tuesday last week my note included a roadmap for possible market action based on last years movements..I highlighted July 21st as the point where it all got messy again..well it happened as the chart predicted..uncanny…if you want to see what happens next refer back to my chart from 17th July or check out my blog on www.beeksdownunder.com, all my market commentary is there.

Our market will remain weak..Oil prices and commodities were attacked last night so back to the defensives for punters…BHP/RIO etc on the nose..banks and TLS in the box seat…SPI down 11  but may slip further..4050 here we come….

Things to make me go all Gordon Merchant.(should have taken the first bid Gordon!!)

1.Bid for Billabong!!Don’t say you weren’t in them damn!!!!

2.Short selling on Spain and Italy banned…just pushed the problem to Greece and other Zombie markets.Was that the point? Don’t think so.

3.Moodys puts Germany on negative credit watch.

4.Spanish ten year bonds hit another record yield of over 7.5%..not sustainable..they will need a bailout.

5..German two years go negative!Flight to US binds continues!!

6. China’s Cnooc Ltd overnight agreed to pay US$15.1bn in cash to acquire Canada’s Nexen Inc in the biggest overseas takeover by a Chinese company.

7.China now has a teenage population with 4 times the level of Diabetes risk than the US..scary ….gotta love that fast food …

8.Sally Ride ,the first US woman in space dies at 61 …

9.After watching five minutes of “The Shire “ last night I am a seller of TEN..unbelievable rubbish…must be a new low in TV!!And then sometimes we get The West Wing!So it can be done..just not here!!!

 

 

There is a good feeling when you call it right and feel good about my Billabong call…as they say get enough monkeys and eventually they will type Hamlet!!Had to get one eventually…I suspect that TPG will have to add a small sweetener in time but they will end up with this baby..as I said as soon as the rights issue was over ,in they went!!

What’s the next one I hear you say..watch this space!!!

And finally… This fellow knocked at a door and said, ‘Hello. Is Charlie in?’ The woman replied, ‘Charlie died last night.’ The man said, ‘He didn’t say anything about a pot of paint, did he?’

 

Clarence

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