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Morning sports fans,

All is right with the World after Emerging markets calmed down last night, Faceplant rallied 14% on its mobile numbers ,US GDP shot the lights out and oversold markets rebounded…shame that gold got bushwhacked on More Taper to come thoughts, shame about Googles’ numbers ,shame about Amazon as well…bot very disappointing….Chinese New Year today…so Happy New Year to all my Chinese friends.

Our market yesterday was down but not out so expect some end of month window dressing in line with DJs fashion parades. The ASX200 is down 3% for the month…serious Santa hangover…2014 is going to be a year when you have to pick winners…going to be more volatile as the Fed backs out of the QEIII forever program and China continues to slow and God knows what is going to happen in Japan..we know Zombieland will continue to limp along like the night of the living dead…mass unemployment ,sporadic growth and ECB propping up the system as the UK benefits from the massive migration of funds from the Euro experiment into London!!It is also a country on its own now…if Scotland leaves the UK maybe London should think about it as well.

Here in sleepy hollow, life continues to get interesting under Abbott…happy with Chocolate doesn’t like canned fruit apparently or cars….must be a fan of Joyville though…

joyville

Expect a relatively subdued rally today as whiplash continues. We are but a small vessel being tossed around on a stormy ocean at the moment….the thing that concerns me is I don’t remember a time when we have had so many downgrades and disasters…yesterday we had another bunch..recently listed McAllesse collapsed, Treasury Wine had a shocker and Navitas also added to the pain…and we haven’t even started reporting season…stock pickers people…it’s all about where you are invested..hopefully I can steer you in the right direction again…

So today we will be up 25-30 points early but Amazon numbers  likely to weigh on US sentiment a little…

Idea of the Day

While we see all these downgrades and bad trading update I believe that the one sector that does NOT surprise is starting to look more attractive…The Banks..they are now trading collectively at 168 bucks…remember my $100 bank basket back in September 2011…they did get to around 180 for the four at one stage…so although everyone in the World thinks they are fully priced I believe that if you are underweight in the banks then this current weakness is a good opportunity to top up…buy on the bad days though…

Things to make me go mmmmm!

Foxy Knoxy has been found guilty again..that’s twice now..28 years this time..guess that Tuscan Villa holiday is off her agenda…

US GDP grows at 3.2%….Consumers are buying again…Facebook up nearly16%…but BHP may be happy they missed this one as Potash Corp of Saskatchewan , the world’s biggest fertiliser company, reported a sharply lower quarterly profit and produced 2014 forecasts that were below Wall Street expectations.

Microsoft Corp.’s board is preparing to make Satya Nadella, the company’s enterprise and cloud chief, chief executive officer and is discussing replacing Bill Gates as chairman, according to sources.And the Zuck is now worth $33bn as Facebook soars!!!

Amazon.com Inc. (AMZN), the world’s largest Web retailer, reported fourth-quarter profit that trailed analysts’ estimates after a surge in costs to ship gifts over the holidays.Net income more than doubled to $239 million, or 51 cents a share.

News that Foreign investment in France has fallen 73% to levels not seen since 1987..meanwhile Spain is up 37% and Germany has increased fourfold…

Woolworths’ struggling home improvement division has appointed British hardware executive Matt Tyson as the new managing director. The appointment ends a six-month search for a replacement for Don Stallings, who left half way through last year.

In more local news ,seems that Shell is selling Australia by the pound as they look to exit their Petrol Stations and even their WPL stake..that will suck up some serious liquidity from the market and cause some selling in other Oil stocks to pay for it…expect some underperformance from the sector…

Must have missed the memo from ASIC that insider trading is ok for directors…the two DJs guys that allegedly bought stock just before an upgrade and during a merger proposal and against company rules are in the clear..apparently..at least for now…

News of a possible merger between Myers and DJs caught my eye. Thought it was interesting comparing it to something like Facebook..yeah I know they are a bit different but Facebook was a business that was under siege..Google, Twitter and the teens deserting them for Snapchat and Instagram…their solution was to buy their competitors and innovate…not merge with another struggling business…now if Myers or DJs really want to thrive and survive in the new retail jungle they should be investing in new business opportunities.,Online alternatives, ways to innovate rather than rely on a fashion show and Jenifer Hawkins!!Just my two cents worth..but as long as they see the future as more of the same and more stores then they will not thrive and just die a slow death.Just like the Dinosaurs…don’t expect the Government to help you either with GST thresholds on overseas buys..

Treasury Wine Estates warned yesterday that pre-tax earnings for the first half of the financial year will be down as much as 43 per cent, an outcome it blamed primarily on sales in the US and the Chinese market falling short of expectations.

Last year’s fatal crash of a Cootes Transport oil tanker continues to haunt trucking company McAleese, which suffered a 29 per cent drop in its share price after revealing the loss of key haulage contracts with oil and gas companies Shell and BP.

After almost two years of failed takeover proposals and repeated earnings downgrades, Billabong shareholders have approved a capital restructure they hope will secure the company’s future while handing a stake of up to 42.8 per cent to two US-based vulture funds.

And finally…thanks Barry..enjoyed our radio show yesterday!!!

Two female teachers took a group of students from grades 1, 2 and 3 for a field trip to Flemington Racecourse. When it was time to take the children to the ‘bathroom’ it was decided that the girls would go with one teacher and the boys would go with the other.

The teacher assigned to the boys was waiting outside the men’s toilet when one of the boys came out and told her that none of them could reach the urinal. Having no choice, she went inside, helped the little boys with their pants, and began hoisting them up one by one, holding on to their ‘wee-wees’ to direct the flow away from their clothes and shake them dry.

As she lifted one boy up, she couldn’t help but notice that he was unusually well endowed. Trying not to show that she was staring at his equipment the teacher said, ‘You must be in Grade 3?

‘No ma’am’, he replied. ‘I’m riding Black Caviar in the next race, but I really appreciate your help.’

Have a great weekend ..back on Sky TV at 5.30 this afternoon…

Clarence

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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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