Morning all,

Quiet night overseas with the US and ‘Zombieland’ slipping slightly..so good to focus on our news…yesterday we had a mixed bag of results with UGL disappointing whilst BSL leapt after a Japanese tie up. Admittedly the stock has been the biggest dog, so any goods news would have sent the market running for cover. Same sort of story for JBH as well, one of the most shorted stocks in the market.NCM (report enclosed) also surprised on the upside with a record profit so maybe this one has turned the corner as well.

High profile commentators(well higher than me!) continue to talk the new bull market in Aussie Equities..let’s hope so …personally I am still a little underwhelmed and want to ensure my feel good feelings are not Olympic related and that the hangover in September is not too bad..

This morning NAB have reported their numbers  ,they said “third-quarter cash profit was flat and just shy of expectations due to high funding costs and slow loan growth.

NAB, which is offering the lowest mortgage rate among its peers in an effort to boost market share, said cash profit in the three months to June 30 came in at $1.4 billion compared with $1.4 billion a year ago and the $1.5 billion expected by analysts”. Maybe a little disappointing but this one has potential..But to put it in perspective for the safety first investors in Banks this year.. Shares of NAB have gained 7.2 per cent this year, prior to today’s trading. Commonwealth Bank climbed 13 per cent, Westpac surged 17 per cent and ANZ jumped 16 per cent. Not bad for a boring low growth sector…catch up time for NAB perhaps?

More results today but expect a quiet day with number crunching high on the agenda..still believe that we can hit 4350 and maybe 4400 on the ASX 200  but no where nearly as bullish as Charlie Aitken…maybe I need to take whatever he is on!

When I look through our research we get from Morningstar..the predominant recommendation is hold or accumulate..not too many buys!!!Although BHP ,RIO and NCM etc have potential to send us higher.

Might be a good time to look at BRU again as there is a big field trip this week from brokers and analysts..red carpet is being rolled out so expect some positive momentum from my favourite small energy play!!

Things to make me go all Underbelly!

1.The VIX in the US just keeps on dropping to 4 year lows..SPI up 8..Gold down 10 bucks. NYSE volume plunges to lowest in a decade!!

2.Low volumes abound in all markets as Zombies and the US remain on holidays…

3.Groupon misses estimates…online demand dims..how many nail extensions can a man get I ask myself!Stock down 21%…Faceplant down 1% to 21.60!!!Much hype no return!

4.Channel Nine hammers rivals with Big Brother and Underbelly last night!

5.Spice Girls reunite….anything is possible!Maybe peace in the Middle east next!

6.Greek economy is now 13% smaller than this time last year!!!

7.Angela back from Holiday…let’s hope she won’t keep saying Nein!

8. UGL chief executive Richard Leupen has signalled a pull-back from the resources sector, warning the top of the industry had now passed, amid an uncertain economic future.

9.Another day another Hybrid..like a Toyota assembly line with Crown is offering investors an attractive yield of 8.6% on a $400m issue of hybrid notes to help diversify its funding options and shore up its balance sheet.

10. Japan’s economy slowed more sharply than expected in the second quarter as exports and consumer spending lost steam, raising the specter of further deceleration

And finally…

A priest was visiting an old Lady in her home. She offered him coffee and they sat down in the living room for a nice chat.

After a while the man saw a bowl of peanuts at the side table. He asked the old Lady if he could have one. She said of course, help yourself.

After a little while he took some more and she just smiled. So when he wanted even more he said: I am eating so many of your peanuts, I hope it is ok. She answered him:

Eat them all if you want! I cannot chew them with no teeth so I have just sucked off the chocolate on all of them.

Back on Sky TV tonight at 4.30 on Market Watch

 

Clarence

XXX

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