Morning all,

Very quiet night as the Greek PM prepares to travel to see the Germans and ask for more time..yeah right like that’s going to happen…Rumblings around ‘Zombieland’ forced traders back to the sidelines and volume was pretty abysmal although Apple did become the most valuable company ever!!!

Our market yesterday behaved reasonably well considering the Ex Div in TLS and CBA but once again defensives are back in favour with Banks leading the way..all those shorters on Aussie Banks have been hurt as the expected property crash has failed to materialise and the banks are still enjoying record profits.

As I wrote yesterday the gains in the market get harder from here unless the big resource stocks join in…the defensives have done the heavy lifting but we need BHP /RIO/NCM and FMG amongst others to kick along as well…maybe BHP figures will be the catalyst..we shall see..my target of 4350 has been reached and feel we may kick again but risk /reward is not as good as a few weeks ago…time to look for laggards and value..

I expect another quiet day today with the focus on results again…WPL tomorrow and I am expecting a slightly better number and a continuance of the rally…

Things to make me go all Top Gun!

1. Big Nath was hunkered down in Sydney with his bankers yesterday discussing the progress of due diligence on his proposed $5.25bn takeover bid of Whitehaven Coal.talk of debt collectors visiting him..not a good look…

2.  CBA is the most expensive bank in the Western world, trading on three times net tangible assets and capitalised at $US99bn.

3.   BlueScope Steel chief executive Paul O’Malley has issued a bleak warning for Australian iron ore & coking coal exporters, saying China’s steel capacity has already peaked, implying a slowdown is imminent for raw materials exporters (AFR, p. 13). The company yesterday reported an underlying loss of $238m, dragged down by weak construction markets within Australia

4.  Arrium has posted a 75 percent slump in net profit to $58m…this includes a $125m write down of its beam technology …underlying profit was $195m versus $235m….

5.  RIP Tony Scott..very sad news indeed… ‘Tower, this is Ghost Rider requesting a flyby’.

6.  I heard a Greek Vox Pop this morning on AM saying that once the Greeks return from the beach they will be protesting again in the streets…tourism is down 40% in Greece…but the beach is free..we shall see.

7.  Phyllis Diller Died aged 95..the mother of stand up comedy..RIP.

8.  Trust me on this ..this really is a Gold Medal performance http://www.liveleak.com//view?i=510_1344196881

 

9.  CEO bonuses under threat…it’s about time…they have been listening to Gordon Geeko for too long…

 

10.Pathology and radiology provider Sonic Healthcare says it expects to increase its earnings by up to 10 per cent after posting a record profit for the 2011/12 financial year.

And finally…

 

Iranian Air Defence Radar: ‘Unknown aircraft you are in Iranian airspace. Identify yourself.’

Aircraft: ‘This is a United States aircraft. I am in Iraqi airspace.’

Iranian Air Defence Radar: ‘You are in Iranian airspace. If you do not depart our airspace we will launch interceptor aircraft!’

Aircraft: ‘This is a United States Marine Corps FA-18 fighter. Send ‘em up, I’ll wait!’

Iranian Air Defence Radar: (no response … total silence)

 

 

 

Results today:

Mcmillan Shakespeare, Miclyn Express Offshore, Arrium (formerly OneSteel), Amcor, Acrux, Melbourne IT, Consolidated Media Holdings, Emeco Holdings, Flight Centre, Mirvac Group, Progen Pharmaceuticals, SEEK Ltd, Sonic Healthcare, WHK Group, CFS Retail Property Trust, Commonwealth Property Office

Oil Search first half results

Have a good day

Clarence

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