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Morning all,

Another big night on the Dow as Fed officials said that economic weakness warrants continued sugar hits. GDP and Jobs numbers to come but all signs continue to point to free money forever. Now if you stand in front of a group of teenagers and offer free money it is inevitable that some will spend it wisely and some will just blow it on fast cars and dumb things …so it is with investors ,hedge funds and the like. Asset bubbles are the fast cars and dumb things..but if the money is free why not!

Anyway expect another good day today after an impressive fightback yesterday from a hangover to close slightly up. CBA was the big story in town..record numbers in sight again and shows what these banks are capable of..SPI is only showing modest gains but the SPI is fast becoming a pretty bad judge …expect a cruise through 5450 and onwards and upwards..5600 peeps…not many shopping days to go.

Looks like we could see all the balls drop at once with Banks continuing to fire on the yield theme and resources stage a comeback as China lays out its plans for the future at its Plenum..if that transpires maybe my 5600 could be a bit low…”Santa Claus is coming to town…Santa Claus is coming to town” ..go Bruce.


Idea of the Day

Good to see the Iron Ore stocks doing well..AGO hit 1.16  yesterday …May have underestimated my target but the Iron Ore space is fast making idiots out of the Masters of the Universe that predicted 90 buck a tonne dirt. Doh! Still like this space..BHP,RIO,FMG,AGO,ARI, etc…and if you want a real roughie for fun..SDL..remember them..big Iron Ore project in the Congo and Cameroon…much hated much disappointment..many stale bulls..but if this space continues to heat up we may see the Chinese back!

The tech space is getting white hot..you can tell its white hot cos TLS gets involved again!!I remember last time round TLS was pushing how techie and dotcommie it was..so it is this time…but Cecil Rhodes founded a country on supplying shovels to miners…TLS could do the same…continue to like this baby..again buy and die with them much like the banks!

And in small cap land….we did talk Vietnamese Casinos a week or so ago with DNA..gone pretty well too… and I have been a fan of ADJ…now these guys are trying to change the way banner display ads work online…they are making a takeover which has to get shareholder approval in December..the market ran hard to 15 then backed off as it moved on to other things..suspect as we get nearer the meeting the stock will improve again..buy around 10/11 for a move back up to 15/16 by the time the meeting comes up on 4th December..Like the guy that runs this one..quality management and in this tech boom market should do well.

Things to make me go mmmmm!

Unemployment number out today expecting a small rise…RBA talks monetary policy tomorrow.

Last night a couple of Fed Chiefs William English and David Wilcox suggested that the weakness of the US economy calls for “Highly accommodative monetary policy”. Free money forever!


Twitter lists tomorrow….should be interesting as dotcom boom 2.0  is in full flight.

A NZ new float GEO which raised money at $1.00 a few weeks ago is trading at $4.35 now!!!opened at 2 bucks and have doubled…XRO are pushing a $4bn valuation.

Bega Cheese: will consider sweetening its offer for Warrnambool Cheese & Butter – possibly raising the cash component of its $430 million bid – in the hope of winning over the target company.

Gravy train leaving platform 9 ¾.. Downer EDI: has warned its shareholders there is a high level of uncertainty in revenue for 2014 given the slowdown in construction work in the resources sector. The engineering and maintenance company said its customers were now responding to lower commodity prices by reviewing their operations and seeking to reduce contracts.

Telstra: investors holding their breath for a share price spike following the telco’s mooted launch of its Chinese car sales website Autohome should exhale, as any capital raised is unlikely to make its way back to shareholders, analysts say. The telco giant on Tuesday revealed that it was planning to float the Autohome website on the New York Stock Exchange in a move that could deliver it between $US600 million ($632m) and $US1.5 billion, reports The Australian.

Good to see the new TEN brekkie show is doing so well..nearly 40,000 people watching..this is not broadcasting this is narrowcasting…give it up Seriously!!!!!

Linc getting the hell out of Dodge as it get shareholder approval to proceed with SGX listing, ASX delisting.

The US fear index is back down under 13 as it has fallen 30% this year.

Home prices are climbing in 88 US cities..all this while applications for mortgages for the purchase of a home plunged at nearly the fastest pace in 9 months this week, dropping to their lowest since the Christmas week 2012 – and lowest since February 2012. Now down over 20% from their May highs, the plunge is a problem

Palestinian Leader Yasser Arafat Was assassinated With Radioactive Polonium, Tests Show….maybe some conspiracy theories are right after all.

Bitcoin going better than XRO! Only just!!


And finally….. An Australian ventriloquist visiting New Zealand walks into a small village and sees a local sitting on his veranda patting his dog

He figures he’ll have a little fun, so he says to the Kiwi

‘G’day, mind if I talk to your dog?’

Villager: ‘The dog doesn’t talk, you stupid Aussie.’

Ventriloquist: ‘Hello dog, how’s it going mate?’

Dog: ‘Yeah, doin’ all right.’

Kiwi: (look of extreme shock)

Ventriloquist: ‘Is this villager your owner?’ (pointing at the Villager)

Dog: ‘Yep’

Ventriloquist: ‘How does he treat you?’

Dog: ‘Yeah, real good. He walks me twice a day, feeds me great food and takes me to the lake once a week to play.’

Kiwi: (look of utter disbelief)

Ventriloquist: ‘Mind if I talk to your horse?’

Kiwi: ‘Uh, the horse doesn’t talk either…I think.’

Ventriloquist: ‘Hey horse, how’s it going?’

Horse: ‘Cool’

Kiwi: (absolutely dumbfounded 

Ventriloquist: ‘Is this your owner?’ (Pointing at the villager)

Horse: ‘Yep’

Ventriloquist: How does he treat you?

Horse: ‘Pretty good, thanks for asking. He rides me regularly, brushes me down often and keeps me in the shed to protect me from the elements.’

Kiwi: (total look of amazement)

Ventriloquist: ‘Do you mind if I talk to your sheep?’

Kiwi: (in a panic) ‘The sheep’s a bloody liar……’

Have a great Thursday



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