Morning all,

Feeling a little tired this morning after the Melbourne Cup festivities.

Still a few thoughts. Last night we once again saw some good numbers from the US and the market initially fell away on Taper Talk but recovered to finish only slightly weaker. The jobs numbers on Friday are the big focus so waiting for them. Over in Zombieland the ECB started to downgrade their economic forecasts for next year and unemployment continues at all-time highs. It is going to take a serious amount of time to get Zombieland back on track! UK economy is the best in Europe with small upgrades coming through as Johnny Foreigner buys their London Pied a Terre and pushes prices through the stratosphere.

Our market today will be a little hung over I suspect but Iron Ore stocks may continue to bubble along as the price remains stubbornly good. All those naysayers are now looking for a way out!Double back flips with pikes are on the way!

CBA results today…look ok at first glance ..more records than HMV..Last chance to buy the banks for their divs .CAN DO.

No rate cut from the RBA as expected and lots of jawboning of the Dollar to try and get it down. Not sure that is going to work especially as the economy recovers.

Idea of the Day

Talked about this before but Iron Ore stocks are looking interesting as traders push up the Iron Ore price in anticipation of the Chinese Plenum next week. Still like BHP over RIO ,FMG for the punters and AGO and ARI for the leverage.

A big thank you to Petrel (PRL )who were kind enough to ask me to their Melbourne cup lunch..fair to say I have liked this stock since I recommended them a year ago and continue to like the stock..as with all stocks the most important criteria for success is the management. PRL is run by former Eastern Star MD David Casey. It is fair to say that he has a good team and an ambition to create a much bigger oil and gas company. The Stock has doubled in the last year and in the next year we should see more gains ahead. The company has a number of prospects now with a focus on elephant country in Uruguay but they also have producing assets in Canada and a big hope in Spain and Texas…all things considered worth a look…

Things to make me go Mmmmmm!

Obama’s rating is now 39% as the public lose faith with Obamacare and his soon to be lame duck Presidency. Not quite sure what he has achieved apart from spying on everyone and the debt mountain of $16.7trillion.So much promise so little to show for it.

More bumper profits today from our wonderful banks as Commonwealth Bank announced cash earnings of $2.1 billion for the first quarter, an annual increase of 14 per cent .In a September quarter trading update, the country’s biggest lender today its bottom line had benefited from “solid” revenue growth, contained costs and improving credit quality.T he unaudited earnings result compares with $1.85 billion result in the same three months last year.

Reports in the paper today that Murdoch is circling TEN.He is a brave man indeed but I guess at least the rumours may help the share price for his son. Can’t see him being allowed to buy more media in Australia but I guess Abbott owes him a favour.

Figures out today suggest it’s going to be hard being a retailer this Xmas with another surge in online spending to come as bricks and mortar boys suffer.

Also reports today that the big man Joe is set to wave through the US takeover of GrainCorp with some conditions…he was due to announce his decision on 17th December but Xmas may come early if the reports are anything to go by.

Santa Claus is coming to town. US Shares have climbed in the final two months 82%of the time since 1928 .60% of the time I am right every time.

Does anyone understand how Twitter makes any money? This thing is now being priced at a market capitalisation of $13.6 billion at the top end of the range. That values the company at 11.8 times its estimated 2014 sales, higher than the 11.4 times price-to-sales ratio for Facebook. Dotcom Boom2.0.The Reboot

US house rents are at their highest level whilst home ownership is at an 18 year low.

Big banks going ex di this week…ANZ and NAB tomorrow and WBC on Friday.They start their DRP Neutralisations programs soon..that is where they buy shares back to  negate the effects of the DRP shares that are sold…could produce some good buying in those periods.

Another reason to like TELSTRA as it has moved to cash in on one of its most valuable Asian assets after announcing the float of its majority-owned Chinese car sales website Autohome on the New York Stock Exchange. The move comes as Telstra on Monday increased its Autohome shareholding from 66 per cent to 71.5 per cent, paying $US130 million ($137m) to the website’s 6.7 per cent stakeholder, West Crest Limited

David Jones Chairman Peter Mason has been forced to defend two non-executive directors who bought shares in the retailer, days before a sales update that sent the shares up 15 per cent. Mr Mason said Steve Vamos and Leigh Clapham were not privy to price-sensitive information when they bought 12,500 and 20,000 shares re­spectively on-market three days before David Jones revealed that first-quarter sales had risen for the first time in nine months, beating market expectations.

Linc Energy is not doing itself any favours at the moment with news that it has pulled the plug on its long-running Queensland underground coal gasification business and will shift its focus to Asia. Chief executive Peter Bond blamed the state government for failing to give the industry any certainty of a future. Linc will close its trial plant at Chinchilla this month, ending about $270 million of investment in the controversial process in the state over the past decade, Mr Bond said. Instead, it will look to build a UCG plant in China or Indonesia, and another in Europe

And finally………….a blonde joke..

A blonde pushes her BMW into a gas station. She tells the
mechanic it died.  After he works on it for a few minutes, it is idling smoothly.

She says, ‘What’s the story?’

He replies, ‘Just crap in the carburetor’

She asks, ‘How often do I have to do that?’

Have a great day.

Clarence

XXXX

 

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

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