Morning all,

Last night ze German Court cleared the Zombie bailout announced back in 1902..well maybe it just seems like it but it’s a hurdle cleared…the markets have been running on hopium and everyone seems to be long..confidence is positive and with overseas markets at multi year highs it’s hard to focus on our drab little market..I have a theory that we are listening to the media too much and this is infecting our psyche with negativity..It’s hardly surprising that the media is so negative most of them are being retrenched so it must be difficult for them to stay cheery in the face of the enormous challenges that are facing the industry…in fact there is really only one challenge..how to make punters pay for content they have always got for free..it’s their own fault they should have adopted the boiling frog tactic when they saw the net take off…now it’s all too late!!

 

Tonight we should get some more positive news from Uncle Ben and although his stimulus will remain muted it will provide a floor or the Uncle Ben Put if you like and thus will encourage the bulls to keep going for it knowing that he will be there in times of trouble. For our market the leadership change in China should be the focus and stimulus there..I don’t believe that we will see meaningful stimulus until the changeover is effected so we remain stuck in the range and beholden to the negative press.

The market will pause today and maybe take a few bucks off the table…Gold was stronger last night but eased back as the day wore on..expect some support for Gold shares again and I hope for a little more upside before we see the price come back to 1700..I remain a long term bull of the Gold price and selected Gold shares.

One of BBY ‘s recommendations that caught my eye is as follows..they are our new owners so have to play nice with them but one to keep an eye on.

NWH – NRW Holdings
Don’t throw the baby out with the bathwater

• NWH is a well managed      company and there are still contracts out there to be won
• NWH is currently trading      at 5.6x FY13 earnings – looks over-sold
• NWH has today announced      a contract win worth A$133M with Rio Tinto for ccivil works at Cape      Lambert takes the FY13 order book from $1.2B to $1.3B (this contract is      fro 48 weeks so some will hbe in FY14)
• BBY revenue forecast for      FY13 is $1,596M which means that more than 80% of revenue has been      secured. It is likely that there will be extensions for contracts      currently underway which will go some way to making up the 20% gap.

STRONG BUY recommendation MAINTAINED
12 month price target = A$3.40/sh
NWH has a reputation for quality outcomes and its margins are above its key competitors.

 

Things to make me go all 9/11

1.Good to see one US morning show thought a Kardashian’s Breast job was more important than the 9/11 commemorations!!

2.Apple launches iphone 5…not sure it’s a game changer..it’s a phone people. It could generate 0.5% of US GDP!!!..maybe Ben needs to enact QE (iphone)4,4s, 5,6 and 7..oh and its gonna be good on 4G networks..another reason to own TLS

3.Ironically they seem to have found Richard III skeleton under a council car park..”my horse, my horse, my kingdom for a horse!”..no wonder he had the hump. Probably a council speed hump!

4.Two bank robbers in LA yesterday escaped in a Volvo..first mistake I know..then they proceeded to throw money out of the window to passers by..the miracle is they found a bank in the US that actually had any cash..they called it a high speed chase ..but in a Volvo..come on.

5.faceplant rallies 7 % above $20 as they announce ‘Killer Stuff’ on the way…sounds intriguing!

6.Sevens bid for Cons Media raise ACCC concerns… Seven Group applied to the ACCC for clearance to make a takeover offer for Foxtel and Fox Sports co-owner ConsMedia in response to a takeover offer for ConsMedia from Rupert Murdoch’s News Ltd.

7.Today is R U Ok day…well R U?

8.Myers announced a 14% profit swan dive…oouch!!Bring on the pictures of Jen !

9.Gotta love the Queensland Government for their latest moves ..make the Mining tax look positively pathetic…

10.Lynas still looks to have issues in Malaysia and this will not be an easy fight despite the recent approvals from the Government…

And finally…who said lawyers had no sense of humour..this happened in a real court!!!!

 

* Lawyer: Now, Mrs. Johnson, how was your first marriage terminated?

* Witness: By death.

* Lawyer: And by whose death was it terminated?

Back on Sky TV this afternoon and tomorrow I am out of the office at a hedge fund conference so no morning email I am afraid..I know you are devastated..I use the singular as I suspect that is how many people actually read as far as this!!

Have a good day and by the way I drive a Volvo!!

 

Clarence

XXX

Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.