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Morning all,

Yesterday was lacklustre as result from some of the big names kept players sidelined, pouring over their excel models, and the two big winners recently gave back some gains. That’s CSL and CBA.Overnight the US wobbled as ‘Tapering’ seems to be coming soon and earnings disappointed a little. News after hours that Cisco was laying off another big swathe of workers did nothing to help either. Meanwhile across the pond Zombieland was a sea of green shoots, green prices and German growth. Seems finally our European cousins are out of recession at least on paper and that’s all the markets care about. not the 60% youth unemployment in some regions or 27% in Spain and Greece.

Today we get results from these guys with DXS, GMG and WES all due out. AMP already out and look a little better than consensus and a new CEO, Craig Meller.Looks like a good way to go out on a high for Craig Dunn good!

Gold had a good time last night ..Unusual in that whenever there is the end of free money talk the metal goes down..seems that the physical demand from China and other Asian countries is taking it toll and positive feelings abound…Not sure I am getting too carried away just yet but it’s a step in the right direction.

Expect a down day today with big variance in stocks as reports hit the market…we have had a good run this week so consolidation the theme before we assault 5200!

Idea of the Day

Back on the 5th August I wrote about a small one that was worth a look…ADJ..Adslot..I even spruiked it on Sky TV ..must be something right with it I guess. Well yesterday they pushed up 25% as a company similar in some respects in the US changes hands at a big price, around $175m.I talked to an internet entrepreneur the other day and asked him how come we cannot have our own Silicon Valley or Glen. His words were “don’t get me started”. It is a shame that home grown investors, governments and corporates in this country are doing so little to encourage a smarter country and place so little value on the digital opportunities out there. Let’s just dig stuff up and make cars no one wants! ADJ though still a Buy under 5 cents for high risk investors

So as everyone else is piling into resource stocks like BHP and RIO as the shorts get their proverbials handed to them, it may be worth looking at the time to sell to these hedge funds. They who were talking Iron Ore down to 80 bucks a tonne! Well I think they have a little way to go til they get really silly so hold on to them for a while longer..40 bucks would be nice in BHP and 65 in RIO..very possible.

Been talking BDR in the last few days and suspect NCM is in buy territory around 12 bucks!

Things to make me go all Walk like an Egyptian !

1.I find it slightly strange that we are more worried about the Greek economy sometimes than what is happening in Egypt! The situation there is getting horrible with a civil war looming. Very sad and tragic loss of life. The worrying thing too is of course the Suez Canal and oil supplies. If it gets worse and I suspect it will this could have unfortunate consequences for the region. Of course the US calls it ‘deplorable’ but not as ‘deplorable’ as before they had all that lovely shale oil and gas! And so endeth Democracy in Egypt, rapidly moving to failed state after military coup.

2.Bumper profit numbers from CBA yesterday but as usual the banks like to play them down in case any politician looks their way and looks at a tax of some sort!!

CEO Ian Narev has cautioned home owners against taking on too much debt, warning economic conditions are risky, even as he reported the biggest bank profit in Australian corporate history. In a result that exceeded analysts’ already-buoyant expectations, CBA’s profit for last financial year rose 10 per cent to $7.82 billion.

3.Fonterra: boss Gary Romano is the first executive to depart in the wake of the whey powder contamination scare that has rocked the dairy giant. Fonterra has been in damage control in recent weeks after its confession that 38 tonnes of milk powder could have been contaminated with Clostridium bacteria, which can cause the potentially fatal botulism illness.

4.Rio Tinto: As many as 1,700 workers at Oyu Tolgoi mine have been laid off amid financing dispute..good game of chicken going on in Mongolia between RIO and the Government!

5.UBS is seeking buyers for a 5.5 per cent stake in Sydney Airport, worth $371 million. UBS contacted fund managers with the block trade after the market closed on Wednesday. Bids were being taken in 1¢ increments from $3.60 a share. It’s believed the shares were being sold on behalf of Abu Dhabi Investment Authority.

6.The next Reserve bank Chief Yellen once said..“For my own part I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.” – Janet Yellen, 2010…

7.We are constantly being told by the media that the US housing recovery is a happening thing but in the last three months mortgage actvity has collapsed by over 50% .All up the US is a very confusing place right now..tepid recovery at best.

8.And food for thought the US markets have now more Margin leverage than during the Dot Com boom and in the run up to Lehmans at $377bn…and for the chartists around there is a formation called the Hindenburg which is supposed to herald disaster..we have now seen this 6 times in Eight days..of course it has been wrong far more times than it has been right but 60% of the time its right every time!

9.If you want to play the Euro recovery,weaker Aussie dollar story check out IEU ,Its an ETF with exposure to Zombieland..I get the feeling the fast money is exiting the US and buying the emerging market story of Europe…could be wrong but think Europe will outperform.

10.Few more reports tomorrow APN, STO, ANZ

And finally I am in debted as usual to my wonderful followers for this gem…I know you only read the jokes so maybe I should put them at the start…then you wont have to read the rest of my ramblings!!!Anyway…

I went to the pub last night and saw an overweight girl dancing on a table.


I said, “Great legs.”
The girl giggled and said with a smile, “Do you really think so.”


I said “Definitely! Most tables would have collapsed by now. “

Have a great day

Clarence

XXXX

Get a Global take on things at www.ntmarkets.com

Get a Global take on things at http://www.ntmarkets.com

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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