Morning all,

The markets were weaker overnight so expect us to give back some of yesterdays gains.IMF warnings of Global Slowdown were taken to heart by the Zombies and the US with some book squaring pre the US reporting season that kicks off this evening with Alcoa. Quiet conditions again prevailed and volumes again wafer thin after Columbus day in the US.

More consolidating and giving up the gains of yesterday I suspect but still fancy a blast towards 4700 before Xmas…always the optimist!

Commodities were a little easier with the exception of Iron Ore which continues to bask in the sun following Chinese holidays…if you are of the view that China will kick start their economy after the change in leadership, that it’s market on a P/E of 8 looks attractive and that the Aussie Dollar is overvalued..I have a deal for you…just ask…it’s called IZZ..an Exchange traded fund…happy to send details if you are of the same mind!

If there was ever a reason to continue to like TLS ..apart from the 7% fully franked yield, no Zombie exposure and a redundant business sold to the Government ..this is it..Our love affair with Mobile data is just getting bigger and bigger..

 

And if you have gone head to head with 4G against 3G you will see that is just the start..

 

Says it all..TLS is a great way to play this sector..what’s not to like!!!

Idea of the Day.

ARI:

Here’s one for the brave..Since touching the mid 50’s with Iron Ore down around $86 a tonne a lot has happened to ARI…there has been a bid of 75 c and importantly the iron ore price has risen to 117!!!The share price is still only sluightly above the bid and with Iron Ore prices heading higher at the moment it is quite possible that the bidder will have to move quickly to raise the price or this little baby will get away…expect to see the stock nearer 1.00 in the near future…Good for a trade I suspect..buy at 80 c or below..downside limited with bidder still around.

Investors with an appetite for slightly more risk only need apply!

 

Things to make me go all Slippery!

1.Great speech from Julia Gillard in Parliament yesterday..worth watching in its entirety on youtube if you have the chance…reminded me of Maggie Thatcher in some ways..not always a fan but you can see why she is where she is!

2.ASX covered itself in glory again yesterday with a glitch causing trading in 12 stocks suspended due to technical issues with announcements. From the US.. Trades that caused split-second disruptions in about 140 companies and exchange-traded funds were cancelled after a review by the firm that reported them, the latest mishap to draw attention to U.S. market structure.

3.’Moaning Mertle’ visits her subjects in Greece….crowds turn out in force to greet her as the conquering hero that she is…lots of hand waving and fireworks being set off in her honour…

4.RIO looks like its getting the knife out ready to cull jobs around the World as the slow down bites….Iron Ore up to 117 though defying the trend..good news indeed for our bulk miners.

5. Alcoa, the largest US aluminium producer, posted third-quarter earnings and sales that exceeded analysts’ estimates after reporting improved productivity at its primary metals and engineered-products units…

6.Oil rebounds as tension in the Middle East continue with NATO saying they will stand behind Turkey if things start to get really nasty in Syria..yeah behind ..I suspect a long way behind!

7.BBG is looking to bolster it’s defence with a retailing expert appointed as Chairman …only if it doesn’t get sold…that is…I suspect that Private equity will proceed with the bid for BBG…all those surf comps will be hard to resist and they have done so much work..of course if we do see a US recovery next year then this of course will help BBG.

8. China’s central bank injected $42.14 billion into the money market—its second-biggest daily injection ever—as it extended efforts to bolster a slowing economy.

9.ACN: It’s understood takeover target Acer Energy held talks with rival Senex Energy yesterday as it emerged the Cooper Basin explorer may look to launch a hostile offer to trump Drillsearch’s $116m bid.

10.This will hurt economies if it comes to pass… The International Monetary Fund said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis, up 18 percent from its April estimate. That would hurt credit and crimp growth by 4 percentage points next year in Greece, Cyprus, Ireland, Italy, Portugal and Spain, Europe’s periphery.

And finally…

A Kiwi walks into a hardware store and asks for a chain saw that will cut 6 trees in one hour.

The salesman recommends the top of the line model. The Kiwi is suitably impressed, and buys it.

The next day he brings it back, complaining that it would only cut down 1 tree and it took ALL DAY!

The salesman takes the chain saw, starts it up to see what’s wrong, and the kiwi says, “What’s that noise?”

Clarence

XXX

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