Morning sports fans,

Another lacklustre night form the US as they mull over Tapering and growth…true 70% of S&P earnings have beaten expectations but then they are now lower than our expectations for Michale Clarke to score any runs or win a game.Anyway wont mention the cricket again…

My call of down 20 yestetrday was complete crap..I have to say that I didn’t read the small print and the resource stocks continue to find favour…but as I said in my market round up we had both hard and soft tacos yesterday..banks and resources up..so easy to get 55 points if both food groups fire.

Iron ore and Gold had really good nights last night with Iron ore pushing up towards 140 even…wow..Iron Ore stocks will be strong again..AGO,FMG,BHP,RIO all will do well..at 138 for Iron and the dollar at 91 cents that’s $151 a tinne..now looking back at peak Iron Ore around 190 from memory and the dollar at 1.08/1.09 its not too bad really…more upside to come in these stocks as analysts have to readjuct their forecasts!!Again!

So where to from here..I have been suggesting that we will grind up towards 5200 and I see no reason to change this forecast..we may even get there quicker as the Resource stocks outperfrom on Copper Iron Ore and Gold etc…and of course lower dollar…but whe we do get there I thionk we need to have a good look around because it might be a little rarified up t here..BHP can easily hit 38/39 and RIO 65 with FMG 5.00 in this heady environment of dud calls from Iron Ore bears!! Was always a good sign when high profile commentator Chalie Aitken throwing in the towel on resource  stocks…once again expect another strong day with resources leading the way…have read the small print today!

Idea of the Day

I have pushed this one before but I reckon there is at least 10-15 cents in this one from 75c to 85-90 ..BDR is the one …has access to two of the now hot commodities in Gold and Iron Ore in Brazil…low cost..high grade and well managed..and it is producing..the stocks will probably jump on the opening today but in the low 70s it’s a buy!

Iron ore stocks too…and you know what maybe time to buy PDN after the placement..stock has been killed with the Justin Langer issues..time to have a good look..plenty of upside..buy below 70 for a bounce big time!!

Things to make me go mmmm!

1.Here is the real reason we need the NBN…got a lot of catching up to do to rival the US on this stuff

2.Good to see the Greek economy improving…celebrations all round as their GDP only shrank 4.6% instead of the 4.9% that analysts had predicted…champagne was opened and everyone was happy..I suspect the reason for the better than expected number was my  beautiful daughter on her gap year in Ios!

3. The Zombie  economy probably (there’s a word) edged back to growth last quarter for the first time since 2011, ending the longest recession since the single currency union started 14 years ago.

Gross domestic product in the 17-nation region expanded 0.2 percent in the three months through June after shrinking for the previous six quarters, according to the median of 41 forecasts in a Bloomberg News survey

4. Domino’s Pizza has reported a full-year profit of $28.7 million for the 12 months to June 30, a 6.4 per cent increase from the previous corresponding year.The firm declared a fully franked final dividend of 15.4 cents per share, at 30 per cent corporate income tax.

5.Looks like I was a bit too negative on JBH after yesterdays results. …”a solid 11.2 per cent rise in annual profit from consumer electronics chain JB Hi-Fi has put pressure on fellow retailers to generate a return from a notoriously tough and low-margin product category, JB yesterday booked a net profit of $116.4 million after tax for the year to June 30, up from $104.6m a year earlier. JB boss Terry Smart said his company’s discount model had allowed it to thrive in a “very aggressive” market that had seen other players including Myer and Kmart downsize their electronics divisions and Woolworths sell off the Dick Smith chain for a knockdown price last year.”And finally DJ’s has seen sense and has got out of electronic retailing and sanctioned Dick Smith to run their instore business..this is the Dick Smith that under WOW was losing a fortune..Private equity have been big winners from this buyout of Dick…wonder why WOW’s couldn’t get it right?

6. US-based entrepreneur Elon Musk has unveiled his proposed supersonic “Hyperloop” transport concept to link Los Angeles and San Francisco.The SpaceX, Tesla and Paypal founder envisions using magnets and fans to shoot capsules floating on a cushion of air through a long tube.If it is ever built, a Hyperloop trip between the two California cities would last about 30 minutes, he said.But Mr Musk says he is currently too busy himself to build it!

7.At least in Zimbabwe the PM is a little more forthright and less obtuse than our Kev13..Mugabe has told the media  his defeated “western-sponsored stooge” rivals as “pathetic puppets” that can “go hang,” adding a particularly downbeat assessment that “if they die, not even dogs will sniff them.”

8.Good to see the flippers are back in the US..with the run in house prices and interest rates at these lows we are seeing a return to 2006 style buy and sell quick property deals..they even now have specialist money lenders who lend for these projects as the banks wont!!One company Arixa Capital lends money for high end homes.. an example of his clients is a realtor who bought his four-bedroom, five-bathroom house in December 2012 for $1.5 million – with money lent by Arixa Capital – and has transformed it with another $600,000. This week the property will go on the market at $3.295 million…..seems just like 2006 all over again!!!

9.Seems the mortgage market competition is heating up with NAB now offering steak knives and a slicer dicer when you take out a NAB mortgage..seems the only lending in town is to home buyers..still like MOC on this basis…must be only a matter of time til they start the overseas expansion talk again!!!!

10. Property developer Stockland has seen its net profit fall almost 80 per cent due in part to weakness in the housing market and a major writedown. Stockland made a net profit of $104.6 million for the 2012/13 financial year, a drop of 78.5 per cent on the previous year. But that result was skewed by a $355 million writedown in the value of the company’s residential book. Underlying profit, which excludes the writedown, was $494.8 million, a fall of 27 per cent on the previous year.

And finally….thanks to Hans for this one today…

A Aussie walks into a pub and takes a seat next to a very attractive woman..

He gives her a quick glance then casually looks at his watch for a moment.

The woman notices this and asks, ‘Is your date running late?’

‘No’, he replies, ‘I just got this state-of the-art watch, and I was just testing it..’

The intrigued woman says, ‘a state-of-the-art watch?

”What’s so special about it?

The Aussie explains, ‘It uses alpha waves to talk to me telepathically.’

The lady says, ‘What’s it telling you now?’

Well, it says you’re not wearing any panties.’

The woman giggles and replies

‘Well it must be broken because I am wearing panties!’

The Aussie smiles, taps his watch and says,

‘ Bloody thing’s an hour fast!’

Have a good day..

Clarence

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