Morning all,

‘Zombieland’ continued its rally last night with the STOX Euro index now up 13% from its June 4^th low..now I know everyone is getting carried away with the ‘Whatever it takes’ rally but I am still in the sceptical camp..the actual economies in the world of the waking dead are just getting worse, regardless of what the markets are doing..helping bail the banks out of their mess is not exactly helping the man in the street as Euro Unemployment continues to rise, confidence continues to fall and growth is non existent. Now I appreciate that letting Greece and Spain go bust is not a good option but more debt to pay the debt seems a cynical exercise in hope and can kicking..I hope that is not the only plan…Whilst the World is glued to the Olympics and feel good national pride, I still feel that risks abound.

In the UK, the GDP suffered as a result of the Queens Jubilee..two weeks of Olympics will be devastating then for that number! And no Golds yet..come on Team GB! Gotta beat the French or Boris will be very unhappy!

As I have previously said in the last few days though I am happy to go along for the ride but always with an eye on the exit…it’s always good to have a plan B..

One of my past favourites TLS hit 4.00 yesterday..again what not to like on this one..still a great fully franked yield but more importantly they are flexing their muscles and positioning themselves as the Premium provider in the mobile telephony space.We all know they have the best network courtesy of ‘The Three Amigos’(yes they did something right!) and now with their focus on delivering a great customer service they are moving to cement their place. Handset subsidies are falling and rates are rising ..be prepared for bill shock if you are a TLS customer but then you should be a shareholder after all..it’s all good..even the ads during the Olympics are pretty good..at least not quite as out of date as the Commonwealth Bank ads..let’s hope the missile fires next time or that’s an expensive campaign up in smoke!Target still $4.20…14 cents div coming soon!!

 

In other stock to watch banks continue to draw the money with yields too good to pass up..CBA is expected to pay $1.88 of lovely franked divs so it continues to appeal..at a 5.7% yield it makes TLS look cheap!I am still a safety first kind of guy at the moment..boring I know…

Things to make me go all Leisel !!

1.Not bad from a swimmer after her fourth Olympics fifth in the World..that will shut up the detractors.

2.US volumes were pathetic again with 14% below the daily average this year..sidelines are beckoning.

3.VIX starting to bust out up 8% last night to 18..still nothing to worry about just yet but move is interesting given a sanguine Dow!

4.WHC bids under scrutiny after Tinkler stumbles for dosh for his Blackwood corp placement!Expect weakness in WHC..may be a chance to accumulate some more.

5.Manchester United seeks $333 m in IPO..could it be another Faceplant..maybe as a Chelsea supporter I just wish that!!

6.Indian Power Grid collapses…300m in the dark!

7.Channel Coverage of the games is up to their usual standard I am afraid..wonder why I never got Foxtel.

8.Expect another rush of Hybrids this reporting season as Investment bankers find a new way to make money …not much else out there at the moment.

9. Fairfax released the June 2012 print circulation numbers on Friday showing numbers are getting smashed. The latest monthly reading shows average print circulation: SMH Mon-Fri down -13%, SMH Saturday down -17%, Sun Herald down -23%. Customers not buying the paper. These declines are huge. Not good for FXJ…or Gina!

10.Mitt Romney is having a worse time than anyone at the moment on his World tour..looks like a Gold medal performance in gaffes!

11.South Korean fencer spends an hour crying after being judged the loser..very emotional scenes in London..she failed to get the point.

12.HSBC have said sorry for money laundering and paid a big price of $700m to settle with US authorities..gotta love bankers!!

 

And finally some stocks to watch today

 

• June quarter production      reports: AWE, Lynas Corporation, Origin Energy, Buru Energy, Sundance      Resources, Paladin Energy
• General meetings: Chesser      Resources, Island Sky Australia, Lithex Resources, Lonrho Mining, Select      Vaccines, Vmoto, WAM Capital
• Navitas full year      results
• Hutchison      Telecommunications first half results

And in other news just in

 

A man goes skydiving. After a fantastic free fall he pulls the rip cord to open his parachute but nothing happens. He tries everything but can’t get it open.

Just then another man flies by him, going UP. The skydiver yells, “Hey, you know anything about parachutes? The man replies, “No, you know anything about gas stoves?

Have a great Tuesday ..suspect a quiet one going nowhere today..SPI up 6!

Back on Sky TV this afternoon much better than the morning show!!!Way too early to talk sensibly!

Clarence

XXX

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