Morning all

 

A quiet night last night on overseas markets as we await the Semi Annual Testimony from Janet and the rest of the Fed.It is going to be interesting to hear how she will explain away the randomness of the US figures recently.Our market needs t pause and reflect as we continue charging into the reporting season. So far so good but then a lot of damage has already been done and the good ones tend to report first! CBA tomorrow so that will set the tone although upside surprise is a thing of beauty!

Anyway good numbers from ANZ will help things along but really waiting for CBA.The falling bad debts is driving the numbers at these banks and as long as the property market and the economy continue trucking along the banks will continue to reap the benefits.

Gold has been a little star performer recently with four in a row. One reason seems to be the massive demand for the physical metal coming out of China.China’s gold buying leapt 41% to 1,176.4 tonnes in 2013. Gold bullion demand surged 57% and gold jewelry demand surged 43% according to the China Gold Association.Huge demand. Those Chickens are organised Mrs Tweedy!
Having flirted with 5050 and broken through the 5100 we have now bounced to 5200..I expect the new range will be 5050 to 5350 for the next six months..selction is vital and as usual you should use weakness especially in banking shares to add to your exposure.

Idea of the Day

Good to see my favourite Childcare provider GEM hit 3.50 yesterday..I have been a fan for a long time and those that read this missive everyday (and you know who you are …Mum?) then you will know that I have long recommended this one…and for good reason..the threat of newcomers to the scene is not as great as some would think given that these guys have just bought 6 centres on an EBIT multiple of 4…not bad Chris Scott not bad!!! Going to $4.00
And thankfully my big tip UNS seem to be moving ahead….up 4% in the US last night…of course with this one as they are traded in the US in ADR form it’s a bit tricky sometimes as a strengthening dollar does not help the share price here…but look to have stabilised and moving ahead for those that followed my advice and bought some..They have a presentation at the end of the week so that may help too.

Things to make me go EWWW!

In Copenhagen they do things a bit differently. The Zoo chopped up a young Giraffe and fed him to the Lions. If that wasn’t bad enough, they let school kids watch. Apparently the Zoo thought it would be a good thing to see how a Giraffe was put together. Seemed that moment had passed as soon as the Lions started munching away!

And hats off to the movement to support SPC Ardmona…sales are going through the roof as we buy their products to show our support…lets not scale back on this when it is no longer on the front page. In Coles the other day, I could buy a tin of Italian tomatoes for $1.Now you cannot tell me that we can import a tin of tomatoes all the way from Italy and sell them for a buck and someone is making money in Tuscany.Its called dumping guys..plain and simple..

Still I am enjoying the Winter Olympics but where are the crowds?Miss the Cowbells on the downhill skiing!

Seems that PM Credlin should launch a Royal Commission into corruption in Europe. Especially Greece! Reported in the NYT was a deputy Defence minister that was bribed to decide on which tanks to buy..not completely sure why they need tanks anyway but anyway , he testified recently, was able to “amass nearly $19 million in just five years on the job.”

Reasons to be cheerful! The driver of the market the banks kicked off the season to be reporting in fine style this morning with ANZ .ANZ Bank’s cash profits rose to $1.73 billion in the first quarter, as bad debts continued to fall and the bank said economic conditions were becoming more predictable.

In a trading update for the three months to December, the bank today said unaudited earnings were up 13 per cent on a year earlier, a result it described as a “good start to 2014.”

Sad news yesterday from Toyota and the thousands of workers that will lose their jobs in 2017.Even sadder for the parts businesses that will go to the wall in the meantime..I know we are not supposed to prop up ailing industries but its hard to compete with countries that do prop them up like France,Uk and USA. Not really a level playing field at all….anyway as the car industry shows when you compete with companies backed by countries you never win!! QAN I am looking at you!

Oil and gas major BP has dismissed speculation about its future in Australia, declaring that it wants to be a ‘‘major player’’ in the local fuel market for the foreseeable future. Despite promising to sell $US10 billion worth of assets from its global ­portfolio over the next 22 months, BP ended months of speculation by saying it was ‘‘fully committed’’ to its network of Australian petrol stations ­and refineries.

Recent float McAleese has hit a new all-time low after the NSW roads minister ordered the transport company’s Cootes petrol tankers off the road again following the discovery of fresh safety breaches. This one is due for a bounce so would be starting to look at it in the next few days!

Good to see the DJs directors are resigning..so they should a dreadful episode of corporate governance. Shareholders shuld be rightly very fed up with the mouths in the trough from Corporate Australia especially given its woeful performance in places.

And I have to say I do not like Kochie at all..smug is the word I use for him but he stood up for sense when he blasted his own channel for paying convicted drug smuggler Shapelle Corby $3m for her story.$3m !!! Now I know she is photogenic and a lot of people think she is innocent but $3m!!Come on..I am waiting for the Shapelle Corby/Amanda Knox double act…bit like Roxy Hart and Velma Kelly from Chicago!

And finally…..sad to see one of the industry commentators Charlie Aitken pull out of the game as he was fed up with people sharing his ideas and not getting paid for it…me I love people sharing!!! Share away..steal my ideas, jokes, and opinions…maybe I will get to be as famous as Charlie one day…

Thanks for this one to Hans..quality jokes my friend ..

A young jackaroo from outback Queensland goes off to university, but
halfway through the semester he has squandered all of his money.

He calls home.

‘Dad,’ he says, ‘you won’t believe what modern education is
developing…they actually have a program here in Brisbane that will teach
our dog Ol’ Blue how to talk.’

‘That’s amazing!’ his Dad says. ‘How do I get Ol’ Blue in that
program?’

‘Just send him down here with $2,000,’ the young jackaroo says, ‘I’ll
get him in the course.’

So his father sends the dog and $2,000.

About two-thirds through the semester, the money again runs out.
The boy calls home.

‘So how’s Ol’ Blue doing, son?’ his father wants to know.

‘Awesome! Dad, he’s talking up a storm… But you just won’t believe
this. They’ve had such good results with talking, they’ve begun to teach the
animals how to read.’
‘Read?’ exclaims his fat
her. ‘No kidding! How do we get Ol’ Blue in
that program?’

‘Just send $4,500. I’ll get him in the class.’

The money promptly arrives. But our hero has a problem. At the end of
the year, his father will find out the dog can neither talk nor read.
So he shoots the dog. When he arrives home at the end of the year, his
father is all excited.

‘Where’s Ol’ Blue? I just can’t wait to talk with him, and see him
read something!’
‘Dad,’ the boy says, ‘I have some grim news. Yesterday morning, just
before we left to drive home, Ol’ Blue was in the living room, kicked back
in the recliner, reading the Wall Street Journal. Then he suddenly turned to
me and asked, ‘So, is your daddy still sleeping with that little redhead barmaid
at the pub?”

The father groans and whispers, ‘I hope you shot that bugger before
he talks to your Mother!’

‘I sure did, Dad!’

‘That’s my boy!’

The kid went on to be a successful lawyer with Slater and Gordon.

Have a great day

Clarence

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