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Quiet start expected for the day as US closed for Martin Luther King Day…Obama was sworn in last night..the Republicans apparently uttered “Bloody man” and that was it..Mitt finally admitted defeat and its four more years of wrangling between the two parties…apparently Obama said ‘We” 60 times in his speech…
Yesterday was the first real day back..research has started back up at BBY so must be back to normal!
Another day of flip flopping but the trend is up for all the reasons I talked about in yesterday’s email…happy to resend again if you can’t find it…Zombieland was better but Metals were pretty much unchanged and no real leads…
Much better volume day yesterday with 4.5bn bucks worth…I will keep an eye on this as more investors rejoin the fun and games, the volume will pick up ..money in the bank is not what it used to be..like all good offspring it must be put to work!!
Idea of the Day (NAB) BUY
Talked yesterday about NAB and rumours of the sale of their UK business..it must be hard to fly a kite in all the snow that the UK has got but they managed it with Santander coming out and denying it..however it was enough for the market to push the shares up and is a sign that investors will reward the bank if they do sell it…I suspect this story will not go away and will keep NAB bubbling for a few months..any buying under $26.00 will be rewarded and not just by the 6.7% dividend yield!
In February last year I talked of the species I liked for the next year…had a look at their performance and one year on its not too bad up around 8% overall but that masks some big moves and a chance to make far more in profits..stocks that I tipped for 2012 were BRU,LNC,PCL,MOD and MSB…all pretty volatile to say the least but BRU and LNC have been winners as have PCL before dying and MOD too swan dived after a run ..MSB bit dull in comparison.(I have a full report if you are interested)
In the next week I will suggest 5 for 2013..bear in mind that they are volatile and require monitoring and trading!
Things to make me go Prince Harry!
1.The Young Hal has spoken honestly about his service in Afghanistan and how he has had to kill the enemy…will be interesting to see the fall out from this one..not sure you are meant to say that!
2.A spokeswoman for Santander told the media that they would not comment or make a statement on the news reports, but she confirmed that Santander UK had denied it was in talks to buy NAB’s underperforming British banks…where there is smoke there is fire and this is now on the agenda..BUY NAB for yield and this sale of the UK business.
3.Suspect that the shale players will all be tarred with the same brush after this… From the SMH…
INVESTORS sold off stocks exploring for shale gas in the Cooper Basin on Monday after Beach Energy reported a disappointing flow rate from its Moonta well there.
There are hopes that Australia can replicate the shale gas boom in the US, with the amount of recoverable shale gas in the Cooper Basin estimated at 85 trillion cubic feet by the US Energy Information Administration, but development has so far been slow.
Late on Friday afternoon Beach reported that the Moonta-1 unconventional vertical well had flowed gas at a maximum controlled rate of 2.6 million square feet per day (MMscfd) and was currently flowing at 1.6 MMscfd.
The disappointing rate fell short of expectations of up to 4 MMscfd, according to Macquarie analyst Kirit Hira, based on Beach’s two earlier Cooper Basin shale gas wells Encounter and Holdfast.
4.The Bank of Japan is set to unveil its most determined effort yet to beat years of economic stagnation, but the big challenge will be how to impress markets already pricing in a doubling of its inflation target and further asset buying.
5. Obama declared a decade of war is ending, the US economy is recovering and “America’s possibilities are limitless”….so is its credit limit perhaps!!
6.Its Options expiry on Thursday so expect a few stocks to be manipulated towards strikes with big open positions..
7. FRAUD cases continue to roil the management of large Australian companies with the latest involving Sims Metal, which has disclosed $60 million of write-downs after ”control failures and potential fraudulent conduct” in the UK, with the prospect that the full extent of any losses may increase.
8.Fracking is still a dirty word with protests growing in the US… Yoko Ono and her son Sean Lennon(god he looks like his dad!!) appeared in Albany, New York, on Friday to join protestors who have been campaigning against hydraulic fracturing, or “fracking,” a method of drilling for natural gas that opponents say can have disastrous environmental consequences…
9.Sign of the times …the original Batmobile has just sold for $4.62m …these are Bull Market prices!!!The Bull is back! Or at least the Bat is !Tangible assets are back in vogue and Classic Cars are one of the hot spots…
An Englishman, a Scotsman and an Irishman are driving through the desert when their car breaks down. So they have to get out.
The Englishman takes a bottle of wine with him, the Scotsman takes an umbrella and the Irishman takes a car door.
On the way they meet this old bastard. He says to the Englishman “I know why you’ve got the wine so you can have a drink when your thirsty”, He says to the Scotsman “I know why you’ve got the umbrella to keep the sun off you”, “but” he says to the Irishman “Why have you got the car door?” and the Irishman replies “If I get hot I can wind the window down!”
Have a great Tuesday
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