Morning all,

Maybe we have all been sucked in and spat out as the Dow collapsed along with Zombie markets..this time is wasn’t so much Spain or Greece although they did help things , along but US and Zombie earnings..as Otto famously said in ‘A Fish called Wanda’..”Disappointed”…

Some big names got trashed in the US like 3M down 4%, DuPont down 9%..Banks also on the nose….Technicals have turned bearish as the S&P 500 broke support…so October does it again!

Expect to see a little bit of carnage in our market today as we have held up maybe a bit too well…40 -50 should do it…I remain bullish..so this is a opportunity to buy..remember my idea of the day from Monday..Patience Grasshopper,Patience ..well now that patience may be rewarded…

I still feel that 4700 is achievable before Xmas so am viewing this pullback with stoic acceptance. I could be wrong on my bullish call ,but with rates falling and Central Banks still saying they will do whatever it takes I hope that the pullback will be just that..I always get a bit worried when everyone is bullish as they were a week ago but am still positive..

Idea of the Day 

SLR:BUY around 3.50 or BUY IGR (currently under takeover from SLR at low 50’s)

One of the great joys of working for a big company  is their access to top quality companies. Yesterday we had a very presentation from the head honcho at SLR..Les Davies..You can see why this management team have taken this tiddler from a $30m IPO in 2007 to the $830m it is today..very impressive and our analyst has a price target of $5.50…plenty of upside..obviously it is a function of the Gold price so this is one to accumulate on the back foot as Gold remains under pressure..put it on your watch list..keep a beady eye on it and use current weakness to get some of this quality Gold miner.

Things to make me go oouch!

1.Here’s a question for you…how much would you value the Newspaper and radio Business of Fairfax….400m? 500m?   Well, Chief executive Greg Hywood will address shareholders today, having yesterday ruled out a break-up of the company despite its venerable newspaper mastheads and radio assets being valued by the market at just A$210 million. The company’s market capitalisation is A$890m including A$680m from its 51 per cent stake in New Zealand-based online auction site TradeMe, valued at $A1.3B….now I know Clark Kent has left the Daily Planet but that seems a bit cheap to me…anyway it is now a break up story clearly Hywood is a man under pressure and the company needs to find a digital media expert to maximise the digital business…

2.The VIX has a good night if nothing else jumping 18% to its highest level since July 25^th…Gold unfortunately did a bit of a thud as it fell to 1707 in the last few days..

3.In tech land Apple unveiled a new mini ipad…not bullish on this one..I remember when Apple were innovators not followers..same product as competition only more expensive…faceplant announced its profit number better than expected..only lost $59m but revenue was better than expected as advertisers tried out the mobile platform…remain sceptical on this as well!

4.Lord Conrad Black (Adder) has clashed with two British television presenters, branding one a “jackass” and telling the BBC’s Jeremy Paxman he was proud of getting through his interview “without getting up and smashing your face in”. Nice work..where is Baldrick when you need him!

5. Spain’s economy contracted for a fifth quarter, adding pressure on Premier Mariano Rajoy to seek more European aid even as the euro area’s fourth-largest economy met a bill-sales target.

Gross domestic product fell 0.4 per cent in the three months through September from the previous quarter, matching the contraction of the second quarter, the Bank of Spain said in an estimate in its monthly bulletin released in Madrid today.

6.’Big Nath’ seems to have settled with Mirvac but came out swinging against Whitehaven directors..after sending a letter to the company with a ‘please explain’ theme he is now threatening to vote against five directors…

7.Chelsea went down 2-1 in the Champions League…not good!

8.Billabong has its AGM today…interesting that the new CEO has put her money where her mouth is and bought some shares..if there was going to be any more terrible news you think she would have held off…or she is completely stupid…cannot rule out that possibility of course..should be a vocal meeting and if I was Gordon Merchant I would be sick today!

9.Another fine speech from the UK’s Nigel Farange on the Zombie disaster and the solution from the Bureaucrats…Go Nige  Worth watching for 3 minutes…

10.Arrium: proposed suitor Posco expects to resume takeover talks with the company “soon”. Co. Senior Vice President Jeon Woo Sig says he hopes to see “good results.” The consortium led by Noble group and Posco is believed to be in talks with their banks to revise financing for another bid,

And finally…….

A nice, calm and respectable lady went into the pharmacy, walked up to the pharmacist, looked straight into his eyes, and said, ‘I would like to buy some cyanide.’ 

The pharmacist asked, ‘Why in the world do you need cyanide?’ 

The lady replied, ‘I need it to poison my husband.’ 

The pharmacist’s eyes got big and he exclaimed, ‘Lord have mercy! I can’t give you cyanide to kill your husband! That’s against the law! I’ll lose my license!  They’ll throw both of us in jail. All kinds of bad things will happen!  Absolutely not! You CANNOT have any cyanide!’ 

The lady reached into her purse and pulled out a picture of her husband in bed with the pharmacist’s wife. 

The pharmacist looked at the picture and replied, ‘Well now, that’s different.  You didn’t tell me you had a prescription.’

Have a great day

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.