Morning all,

I thought I had seen it all from the geniuses in ‘Zombieland’ but getting Cypriot bank depositors to pay for the bailout of the banks is just classic. Well done guys. A levy on deposits to pay for the banks sins is a sure fire way to get that money back under the mattress and get every depositor in ‘Zombieland’ to have a good hard look at where they have got their cash. Of course, Cyprus has long been home to money laundering on a grand scale being a tax haven and the Russian Mafia worked this out a long time ago but the poor old Cypriots are now being punished along with organised crime. Seems like the proposals will be watered down for small guys but the mafia may have to think again about where it invests its money.

Overnight Wall Street couldn’t make it 11 in a row as large volume due to quadruple witching kept the market in a narrow range but ultimately negative. We are likely to see a 20 point down day today as Friday was just silly. Everything fired at once. There was no red anywhere ,only ORI. But think today we will be below 5100 again and still fancy my short term target of 4950,before we turn back up again.

One of the few winners of the Russian Cyprus issue has been Gold with a move above 1605…maybe this will be the catalyst to a renewed push for the shiny stuff…

 

Idea of the Day

One sector that has been really hit hard in the last few months is the Gold stocks..maybe that may change..

Also Kenya seems to be the flavour of the month with a couple of big UK and Canadian companies talking it up after recent discoveries…

“The U.K.’s Tullow Oil Plc (TLW) and Canada’s Africa Oil Corp (AOI). found crude at two wells last year and now plan as many as 11 more test wells in 2013. The valley could yield 10 billion barrels, Tullow estimates, enough to supply Kenya for three centuries or the U.S. for about 18 months.”

Isn’t that scary that 18 months of US oil is the same as 300 years of Kenyan demand!!!!

Now there is a small Aussie player that I have pushed from time to time…maybe time to have it back on the watch list..PCL is the stock..tipped it last year went from 11 to 24 and all the way back down!!Maybe it gets another shot at the title..one to watch apart from all my usual favourites!! From their last statement to the exchange!

Pancontinental Oil & Gas NL (“Pancontinental”) is pleased to announce the results of a new

prospective resources report for its L6 exploration licence area offshore Kenya.

 The L6 area has potential to contain approximately 3.7 billion barrels of oil or 10.2 trillion

cubic feet of gas prospective resources on a Gross, un-risked, best-estimate basis

according to an assessment by operator FAR Limited.

 Pancontinental holds a 40% interest in the L6 licence.

Things to make me go hmmmm!

1.Seems that Cypus is going to dominate the headlines for a while on financial markets. New President covering himself in glory after only three weeks on the job! And lucky they have declared another BANK holiday to try and sort out what they have put in motion…makes you wonder what these idiots will think of next…not sure this is what Super Mario meant when he said whatever it takes..as long as you guys pay for it!

2.Chelsea go third after a 2- Nil Victory against West Ham. Messi scores 2 again for Barcelona. The commentator suggested he “could make the hair on a billiard ball stand up”!

3.In media land there is a Senate enquiry today so the companies will get a  chance to really have a go at the Government. With Julia on 31% she picks a great time to pick a fight with the real power behind the throne.

4.if the Cypriot method of taking people’s money to pay the Bankers bonuses catches on ..here’s how much they will have to take to sort out Zombie debt!Not pretty if you are Irish..Happy St Patricks DAY!

 

5. NAB CEO Cameron Clyne has ruled out a banking acquisition or a fire sale in Britain, despite bargain basement prices being assigned to distressed assets. While bank watchers have long argued NAB needs to get bigger or get out of the difficult British market, Mr Clyne said he was satisfied the restructure of NAB’s retail operations — focused on the less prosperous north — was yielding results.

6.All those people who have shorted BRU may struggle a bit with news out this morning that Eric the Viking(Executive Director) has agreed to sell some of their interest in the Fitzroy blocks for 21m to Mitsubushi…this has now satisfied the companies need for cash..no issue then..lots of shorts hoped to get the stock back on a capital raising..may see some more short covering.

7.Things are getting interesting for IAU. Remember these guys had their Indonesian Mining project stolen off them..or so they say…few interesting emails emerging..SMH has a great article today if you are interested  check this out

8.There are now some commentators suggesting that Cyprus is the start and there is a plan to tax the wealthy in Italy and Greece…I reckon if they could tax anyone in these countries it would be a step forward!

9.It now looks like the World’s greatest Treasurer is struggling to find anyone to pay taxes here as well as a huge hole now appears in the Government coffers..the national budget fell a further $4.6bn in the first four weeks of 2013 bringing the shortfall to $27bn in the first seven months of the year.

10. Concern about high-frequency trading in Australian equity markets is “overstated,” the country’s securities regulator said after concluding a study that found no systematic manipulation of markets by traders using these strategies.

And finally…from one of my Twitter friends Downtown Josh….

An Italian, a Greek and a Spanish guy walk into a bank..no it’s not a joke …it’s what is now happening

Have a good day

Clarence

XXX

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