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Morning all,

Last night the US market flip flopped around finishing mildly positive. Caterpillar came out with its numbers which missed forecasts, they also downgraded their assumptions for the growth around the world but a share buy back and some soothing comments were enough to get them in the green for the day.

Gold was the standout last night whilst copper still struggled and Iron Ore remained flat. Expect a positive opening today ahead of the HSBC flash(or not so flash) PMI later this morning.

11:45 China HSBC Flash Manufacturing PMI Apr – Survey: 51.4 Prev: 51.6

Usual suspects will be in favour with some nibbling around the edges in Gold stocks.

Just to be on the safe side Morgan Stanley has cut its base metal forecasts across the board even Uranium. Of course the market had come to that conclusion some time ago hence the dog performance of the resource sector.

SPI up 13 overnight but volume to remain on the light side. Barely made it to 3bn yesterday!!

Idea of the Day-WPL LNC Both buys!!

Just in…WPL Board has declared a special dividend of $0.63 per share….is this the start of a trend..expansion on hold..rewards for shareholders….you never know!!!

* Given strong liquidity position and franking credit balance,board determined that effective immediately co. will target a dividend payout ratio of 80% of underlying net profit after tax
* Based on current forecasts, this payout ratio is expected to be maintained for several years

Maybe time to have a look at LNC again..the results this morning from their Alaskan project Umiat are encouraging and they have oil flows.we are waiting for the a number but it proves they can operate in tough environments and that the project has considerable scope.Our analyst has a big price target on them around 3.40..not sure I am that bullish but certainly we could see them back over 2.20 with the good news continuing.

 

Things to make me go mmmm….

1.Another day, another disappointment from NCM on production numbers. Seems that the industry is finally coming to terms with cost cutting though as every miner is now looking at how much it costs to employ the FIFO workers and keep them in Jetskis!…Newcrest Mining cut 150 jobs during March and is reviewing the future of some mines with “considerable” focus, as the recent plunge in the gold price continues to take a toll on Australia’s fourth biggest mineral export industry.

2.Manchester United win the English Premier League!!Well done!

3.Struggling surfwear retailer Billabong International Ltd will reportedly extend a 10-day exclusivity period granted to suitor Sycamore Partners as the two sides continue to discuss a takeover. Billabong chairman Ian Pollard is expected to issue a recommendation to support Sycamore’s 60 cents a share takeover offer, despite his concerns that the offer undervalues Billabong. Think he should feel lucky that anyone is still interested in this one. Management has been atrocious still there are a lot of BA student that will study this in years to come. How to stuff up a company!

4.OZ Minerals has joined the mining industry’s attack on costs in the face of the sudden and sharp fall in metal prices by freezing wages and slashing bonus payments to staff. But news of the attack was not enough to stop OZ Minerals shares being slammed yesterday after it revealed that total production costs at its Prominent Hill copper-gold mine in South Australia’s outback had risen to an uncomfortable $US3.16 a pound ($US3.23 a pound after a new accounting standard) in the March quarter

5.Investors in specialty pharmaceutical company Pharmaxis are waiting nervously for the outcome of the late-stage trial of its drug to treat the lung condition bronchiectasis. The Sydney-based firm that specialises in products for chronic respiratory disorders went into a trading halt yesterday, announcing it had received the top-line results for its Phase III clinical trial of the drug Bronchitol, known as “B305”.I get the feeling that it was not the result the company or the market wanted but we shall see.

6.This is a good one…a Chinese woman is suing the Federal Reserve after discovering that the real value of the USD250 she put in an account in 2006 had shrunk by 30%. She claims it was the result of the Fed issuing too much money.Class action anyone!!!????

7.Gold had another good day yesterday as the flash crash in the market starts to fade into memories. The  “Great Gold Smackdown” is subject to so many conspiracy theories its not funny. Watched a great video yesterday on where the Gold went…some believe that the Gold is gone from vaults around the world..Maybe this explains why no official has yet answered why the Federal Reserve Bank of New York told the German government a couple of months ago that it would take seven years to return that country’s gold held in safekeeping .I can send you a link to the great doco on Gold if you are interested. Fort Knox has not been assay audited since 1954..security reasons apparently.

8.Interesting that Canada comes up with its own Terrorist plot today having investigated it since August 2012!! I find it strange that the Boston Bombings are now set to change immigration and nationalization policy whereas a mass shooting of 5 in Washington yesterday hardly raises a ripple.

9.And in an interesting development the UK Government has said that if Scotland wants to be independent then they will have to have their own currency and not the pound..they have said that a shared currency does not work without a close fiscal arrangement and ways of dealing with ‘banking difficulties’. So goodbye Pound hello Euro for Scotland…should ensure that no one votes for independence!

10.Yet another Gold stock EVN has reported production down 6% costs up 20%…familiar story …trouble is miners are run for the benefit of everyone but the shareholders it seems!

And finally…

A man who’d just died is delivered to a local mortuary wearing an expensive, expertly tailored black suit.

The female blonde mortician asks the deceased’s wife how she would like the body dressed. She points out that the man does look good in the black suit he is already wearing.

The widow, however, says that she always thought her husband looked his best in blue, and that she wants him in a blue suit. She gives the Blonde mortician a blank check and says, ‘I don’t care what it costs, but please have my husband in a blue suit for the viewing.’

The woman returns the next day for the wake. To her delight, she finds her husband dressed in a gorgeous blue suit with a subtle chalk stripe; the suit fits him perfectly…

She says to the mortician, ‘Whatever this cost, I’m very satisfied.. You did an excellent job and I’m very grateful. How much did you spend?’

To her astonishment, the blonde mortician presents her with the blank check.

’There’s no charge,’ she says.

’No, really, I must compensate you for the cost of that exquisite blue suit!’ she says.

‘Honestly, ma’am,’ the blonde says, ‘it cost nothing. You see, a deceased gentleman of about your husband’s size was brought in shortly after you left yesterday, and he was wearing an attractive blue suit. I asked his wife if she minded him going to his grave wearing a black suit instead, and she said it made no difference as long as he looked nice.’

‘So I just switched the heads.’

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

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