Morning all,

Greetings from a snowy and cold UK still!Had been a while since I saw snow but there is was today driving through Sussex.Anyway to the markets…..some emails ago I talked about the three things in life you can be sure of ..death, taxes and the Dow hitting all time highs..well it nearly did on Friday night although backing off a touch towards the end but within a cooee of the magic high.It will have another go this week and probably go through it with ease.Our market continues to grind higher and is continuing to be driven by the big stocks..first the banks then the big miners then the banks again…leapfrogging ever higher.Stick around for the ride…its nearly 5000…these things always overshoot so we have more life left in this pony still….

Results season will be the focus ..expect the money to chase the good results far higher than they deserve…the naughty children though will be punished..JBH look to be slightly better than the bears suspected…lots of shorts out there in this one so may be a squeeze..

Idea of the Day

An Oldie but still a goldie…BRU…Recent experts report that BRU is sitting on a large wet-gas resource that should be very attractive for a potential future farmin partner looking to aggregate gas and work with BRU for a Domgas project and or LNG export. BRU will need to undertake more drilling and testing,importantly however the present share price is not factoring the magnitude of the their acreage and resource size.Our analyst Scott still is confident of a 5 buck target on these babies but it does not happen over night but it will happen.

In a nutshell the resource numbers attributed to the Laurel formation (which is extensive across BRU’s permits) are huge .

The Independent experts estimate that BRU’s share of the gas could be 12tcf (low)  47tcf (best) and 150tcf (high). These are big numbers indeed even with a 10-15% recovery rate its still pretty good so a I continue to recommend clients have some of these in thir portfolios.

Things to make me wish I was back in sunny Sydney!!

1.Suspect we may see more Zombieland news this week as Finance ministers continue to grapple with Greece,Cyprus and elections in Italy and trouble in Spain…could provide a few more jittery moments to come..its certainly not over by a long shot.

2.Here in the UK the horse meat scandal is widening and fingers are pointing to organised crime and Romania!!!First they had mad cow ,now they have really upset Horse…

3.A radical new option for the financial rescue of Cyprus would force losses on uninsured depositors in Cypriot banks, as well as investors in the country’s sovereign bonds, according to a confidential memorandum prepared ahead of Monday’s meeting of eurozone finance ministers.

4.In the news today…..Vodafone Australia: has almost halved its total workforce in the past 12 months and made drastic cuts to its operating costs as it focuses on the repair of its mobile network, and attempts to reinvent itself as a more agile telecoms company. Vodafone chief Bill Morrow told The Weekend Australian that the mobile operator was now at its “ideal” size after reducing its total headcount by 45 per cent in the 12 months to December 31 last year…still rubbish service and TLS is kicking their bottoms…will continue to do so …although as teh election looms closer in September TLS may come under some nerves as to the Government in waiting’s plans…

5.Results season continues this week with JBH already out this morning..Electronics retailer JB Hi-Fi has lifted its first half profit by three per cent and expects full year profit to grow by up to seven per cent. The company made a net profit of $82 million in the six months to December 31, up from $79.6 million in the same period on the previous year. Total sales grew by 2.3 per cent from the previous corresponding period, due to growth in the company’s number of stores.

6.And I know that everyone around the World is in amazement still on Australian House prices but London House prices have risen 53% in three years and that’s during a recession….UK house prices are still very high especially in the South East…in fact London is probably going to succeed from the rest of the UK and become its own country,it really is a unique microcosm… and of course they have Boris to lead this new country.

And finally….few topical jokes from over here

I bought a burger at a Tesco’s cafe, the waitress said “would you like anything on it?”, I replied “a fiver each way “.’

‘I selected some burgers on the Tesco website… I then clicked on “add to cart”.’

‘You think Tesco Horse Burgers are bad, you should try their Quarter Pandas.’

‘I think someone is trying to kill me. I woke up this morning and found a packet of Tesco burgers had defrosted in my bed.’

Have a good 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.