Morning all,

Well, yesterday was fun! Some signs of panic in resource stocks evident as sellers and ‘shorters’ got the bit between their teeth. Expect a modest Dead Cat Bounce(?) today from some of them, but the jury is still out I am afraid. The Global quest for yield is sidelining resources and commodities as they don’t pay shareholders or holders much to keep them in the drawer. Production problems, cost overruns and lack of drilling success ,not to mention low shareholder returns, are killing the sector. Now there are some bargains around undoubtedly and for the brave there are some good stocks to pick out but it’s tough going. One to buy as my idea of the day below!

Market will pick up around 25 points early as banks rally better than the miners as usual but nerves will set in pre the US Jobs number tonight…if we get a bad figure the US will rally as then the Crack Stimulus package will be seen as lasting longer..I would imagine the worse thing that can happen is a really good number which will bring talk of an end to the stimulus that Uncle Ben is providing…no addict likes his drugs taken away!

Breaking News!!! Australians with about $2 million in superannuation will lose tax concessions under changes to the system announced on Friday by Treasurer Wayne Swan.

Treasury estimates that about 16,000 people will be affected by this measure in 2014-15, which represents about 0.4 per cent of Australia’s projected 4.1 million retirees in that year.

For superannuation assets earning a rate of return of 5 per cent, this reform will only affect individuals with more than $2 million in superannuation assets supporting income streams.

Phew …lucky miss that one!

Idea of the Day BDR-Strong Speculative BUY

Ok it’s a gold stock..yeah I know but around 75 c BDR looks attractive to me…they did a placement at 91c and everyone was falling over themselves to get in. These guys are a LOW COST producer..really…would expect a bounce back towards 85/90 when sanity returns to the market…get back in there and buy Mortimer!

Announcement this morning helps too…

Commissioning of Beadell’s 100% owned CIL gold plant in Brazil has gone very smoothly with production for the March quarter totalling 651,498 t @ 1.57 g/t for 30,451 ounces of recovered gold. Excellent recoveries of 92.6% were achieved. CIL Gold Plant throughput increased in each month as normal commissioning and ramp up issues were overcome.

Things to make me go mmm!

1.Looks like we are going to get more clarity on the Super changes today..well before the Budget. Must be happening as Julia is leaving the country for a Chinese visit so what better time to bring this out..It amazes me the level of ineptitude of this Government when they allow this debate to spiral out of control, hot on the heels of the Cypriot Deposit grab…I think any of their advisers that are on 457 Visas should be sent packing immediately..was always bound to be whipped up into hysteria by Mr Rabbit

2.Super Mario left ECB rates on hold last night whilst bemoaning the fact that he sees more downside risk in Zombieland. Apparently he has a Plan B..seems to be watching and waiting and hoping..wrong plan mate..it will continue to eat away at the core economies until we get to yet another serious crisis moment. To cap it all a Italian Banker suggested that the Cyprus model was a good one and could be implemented in other countries! Beware savers!

3.Shock and Awe! The Bank of Japan opened its shoulders last night with a massive inflationary program aimed at lifting inflation to 2% with a & trillion yen stimulus package. Yen got whacked, Japanese exporters rallied hard…are you listening RBA…get our currency down!!The theory is that when commodity prices fall, and fall they have ,then the dollar will fall…of course with rates so low everywhere else and us with a AAA rated high interest rate environment why would the dollar fall…and three more years of Glenn..great!Better economic numbers from here yesterday look to have crushed hopes of a further rate cut as well!!Hence the market falls!

4.The ‘Billagone’ fiasco continues as the bidders now appear to be talking about a part exchange with a used surf board for the company…meanwhile the company is still engaged with these people…why are management wasting so much effort in this process..if someone came round to buy my 10,000 dollar car for 500 bucks I wouldn’t let them have it for six months to drive around in until they were completely happy with it…unless of course it’s only worth 200 bucks!!Which begs a question!!

5.And talking of takeover fisacos,there is always Sundance… China Development Bank says it has not yet approved plans to extend Hanlong Mining a $US1 billion loan to fund its acquisition of Australian iron ore explorer Sundance Resources. Bankers in Hanlong’s home town of Sichuan told the Chinese-language newspaper that the CDB had cancelled funding after the privately-owned company’s founder, detained by the Chinese authorities on suspicion of aiding his fugitive brother, who is accused of murder…..and there was Julie Bishop on the Radio this morning telling all that China is disappointed with Australia and its attitude to investment by Chinese companies..well maybe if they actually followed through on plans rather than just trying to leg people over that may be a worthwhile comment..of course Sundance is in Africa but the principle remains!

6.Looks like Big Nath’s stake in WHC is being shopped around at the moment …feel sure he is a tad under water on this one now….

7.And Korea looks to be getting so volatile that even my sixteen year old son commented that things were getting gnarly in North Korea…usually unless its girls or surfing it doesn’t really figure on his radar….so things must be bad ..either that or he is worried about surfing trips to the region..suspect the latter!

8.And good news from the US where the smartest man in the room Jeff Skilling seems to be on the cusp of getting a massive reduction in jail time..seems the authorities have given up on trying to prosecute other white collar crims and now focussing on getting some of them back in circulation…

9.And it seems that the SEC in the US is going to allow companies to make announcements on facebook and twitter to shareholders…this is fraught with hacking danger I reckon…lots of potential for misinformation from hackers!!

And finally….apologies…but at least its clean

A blonde had just totaled her car in a horrific accident. Miraculously, she managed to pry herself from the wreckage without a scratch and was applying fresh lipstick when the Police arrived.

“My God!” the Policeman gasped. “Your car looks like an accordion that was stomped on by an elephant. Are you OK ma’am?”

“Yes, officer, I’m just fine” the blonde chirped.

“Well, how in the world did this happen?” the officer asked as he surveyed the wrecked car.

“Officer, it was the strangest thing!” the blonde began. I was driving along this road when from out of nowhere this TREE pops up in front of me. So I swerved to the right, and there was another tree! I swerved to the left and there was ANOTHER tree! I served to the right and there was another tree! I swerved to the left and there was ….”

“Uh, ma’am”, the officer said, cutting her off, “There isn’t a tree on this road for 30 miles. That was your air freshener swinging back and forth.”

 

Back on Sky Biz at 5.30 today..again!!

 

Clarence

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