Morning all,

Well according to the papers it’s a bull run..now forgive me from being cynical but the market is now up 30 points for the week and every likelihood that today we will give that back and be square! Yeah some bull run!!Anyway as I said in my email on Monday volatility is here to stay for a while. Every day brings a new contradictory number! Last night we had some good numbers from the US so of course the Fed Stimulus then gets questioned again and so we eased back. Didn’t help that Goldman downgraded their second half GDP forecast to 1.7%…that’s hardly an economy out of the intensive care ward but still better than others!!Anyway the proof of the pudding is in the results which kicks off with Alcoa on July 8^th!So we shall see what the economy is really like…anyway to our market and yesterday’s surprise rate cut was enough to kick the market up 124 points…sorry I am living in a parallel universe..no rate cut and still up she went..just on the promise of more cuts..the real kicker was….??? Nah I suspect it was a combination of oversold on Monday, commodity rises and dollar strength ..I mean down 94 on Monday for no real reason and the up 124 on Tuesday for no real reason..volatility is your friend remember!!The big positive yesterday was the rises in commodity prices..today we have oil at $100 again…now that’s not always a good thing as you will find out when you go to the petrol station..low dollar high oil..good luck with the Land Crusier!

I remain convinced that we are going to bounce around for a little while longer at least until the middle of August and/or the election…now Rudd is back in charge things will get interesting for sure and it’s not the given that it was…Tony must be having a few sleepless nights right now and if I were him I would be opening a Tom Waterhouse account and backing Rudd as a hedge!!

I believe that we may see 4600 again but we are in a range with a downward bias until the dust settles…lots happening in the World and lots of conflicting signals…use the volatility Luke..the Volatility is strong with this one!

Idea of the Day-BUY BXB-Flogging off Recall and US exposure a positive!!

One stock to benefit from the US growth prospects is BXB…now not only do they benefit from more things getting moved around but a lower Aussie Dollar helps and now they have announced that they are spinning off their document storage business Recall..another positive..currently 9.30 ish..would expect to see 10 bucks in the next few months!!

Yield around 3.3% PE of around 18 in 2014 so not hugely chep but uncertainty over the Recall business will prove positive! This is one to accumulate on those nasty down days like Monday when the market surprises on the downside…Happy to buy some here and some lower if they get there…as I say my target is that nice big fat round number 10!!

Things to make me go mmmm…..

1.Brambles has resorted to spinning off its document-storage business, Recall, into a separately listed company on the Australian sharemarket after failing to sell the unit to trade buyers last year.In the biggest company split in Australia since Westfield spun off a retail trust in 2011, the world’s largest supplier of timber pallets will list Recall as a separate company with a market value estimated at $1.1 billion to $1.5 billion by December

2.Galaxy Resources Recommences 1 for 1 pro-rata non-renounceable capital raising at A$0.08 a share to raise as much as A$46.7m before costs; stock last closed at 15.5 Australian cents on April 24.

3.QBE Insurance Group says the company’s cost cutting drive is ahead of schedule as its Manila operations centre takes over key jobs such as claims processing. Speaking with investors and analysts in Sydney on June 2, QBE boss John Neal said the savings would be “at least” the stated $US250 million ($272.4 million) target he set in February as part of long-awaited overhaul of the company’s business units around the world.

4.Here’s a scary thing..is Portugal like Nigeria…well at least with their five and  ten year yields are in line!

 

Not sure Nigeria wants to be the new Nigeria!!

5.Service Stream is slashing as many as 100 jobs from its books as the company attempts to reassert control over tumbling profits thanks to its faltering NBN joint venture. It is understood the job cuts are being made as Service Stream explores a number of options to arrest financial declines exacerbated by persistent problems with Syntheo, its 50:50 joint venture with Lend Lease that holds several lucrative construction contracts to build the NBN.

6.Environmental activist Jonathan Moylan has said he‘s been charged over allegedly conducting a sharemarket hoax which sent the value of Whitehaven Coal shares plunging. Mr Moylan allegedly distributed a press release in January purporting to be from the ANZ Banking Group saying the bank was withdrawing a $1.2 billion loan to Whitehaven for its Maules Creek mine near Narrabri.

7.Increasing signs that the British economy could beat growth forecasts and see a firm revival this year provided Mark Carney with a warm welcome as new governor of the Bank of England on Monday.The proportion of UK services companies reporting rising exports rose to a record high in the second quarter, according to a closely watched survey by the British Chambers of Commerce.

8.Sex Ed is taking off in China ..good for Ansell which should get some traction on this .. “It will be a huge and growing market for a long time to come,” said Mickie Leong, who heads a China unit for Ansell that sells a condom called Jissbon, which sounds in Chinese like “James Bond,” the fictional British spy. “As consumers become more educated and more liberal, they consequently understand the need for safety, prevention and happiness all in one.” That’s expanding a market forecast by researcher Global Industry Analysts Inc. to increase 9%  annually to reach $1 billion by 2018.

9.And in confusing signals Moaning Mertle has been giving a few interviews…

• *GREECE MAY NOT GET NEXT EU8.1B AS PLANNED, MERKEL TELLS SZ
• *GREECE MAY GET NEXT EU8.1B IN TRANCHES, MERKEL TELLS SZ
• *MERKEL SEES NO ADDITIONAL DEBT CUT FOR GREECE: SUEDDEUTSCHE Z

Don’t forget good people she has an election to win too!!!

10.My gorgeous son ,Will passed his driving test today..we have a new cab service! yeah baby!!

And finally…………

Only An Aussie Can Make You Feel Like A Woman

A plane passed through a severe storm. The turbulence was awful, and things went from bad to worse when one wing was struck by lightning.

One woman lost it completely.

She stood up in the front of the plane and screamed, ‘I’m too young to die,’ she cried.

Then she yelled, ‘If I’m going to die, I want my last minutes on earth to be memorable! Is there anyone on this plane who can make me feel like a WOMAN?’

For a moment, there was silence. Everyone stared at the desperate woman in the front of the plane. Then the man from Australia stood up in the rear of the plane.

He was handsome, tall, well built, with dark brown hair and hazel eyes. Slowly, he started to walk up the aisle, unbuttoning his shirt as he went, one button at a time. No one moved. He removed his shirt. Muscles rippled across his chest.

She gasped…

Then, he spoke..

‘Iron this — and then get me a beer.’

 

Have a great day

Clarence

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