Morning all,

Results coming thick and fast today with BHP ahead of estimates, ARI looking good and the Gold price up again last night.US markets closed for Presidents birthday …think it’s the one where Marilyn comes out of a cake and sings…maybe I have this wrong…anyway with the first week of reporting season out the way it is apparent there are winners and losers..big time..UGL was obviously a big loser as the CEO tried yesterday to argue that things were on track..not sure if it’s the right track though.

Hard to believe that this market was languishing around 5100 not two weeks ago …and here we are highs for 2014 and looking to kick on..banks driving it and good old resource stocks rallying…expect to see the 5450 number taken out this week…

Conveniently we will cast aside the GDP numbers form Japan..who cares..the US is slowing down and the taper will effect the Emerging markets ..but that is for another day..Zombie recession is over..Italy has a new party king and the world is right…even Murdoch got a nice big fat cheque from the ATO for supporting the Coalition yesterday..the only thing to upset the apple cart is the inevitable rising rates …this is an issue for mid year but it will happen..not here..we will be on hold all year but elsewhere it will be a reality..UK ,US and elsewhere.

The first week or so of reporting season is usually the best so wobbles may set in towards the end of the month but will be confined to mining services and those that are suffering from bad management and Aussie dollar strength..at least that is the excuse du jour…for now enjoy the ride…will be over by Easter as usual!!!

Idea of the Day

Have long been a fan of BHP as readers will know…it’s my favourite in the sector …diversified and quality..today’s result shows their strength and would expect to see further gains ahead as the market wakes up(finally ) to the giant hole in the ground ATM that is Iron Ore..the iron ore price even went up again last night as China throws off the shackles of the New Year celebrations and numbers from the Middle Kingdom seem to be showing a steady and stable economy doing quite nicely..of course they tend to make them up but who cares…I would expect BHP to drive this market higher….

Underlying NPAT for the half of US$7.8bn versus consensus estimates of $6.8bn,…dividend up to US59cents…my target price is $40.00 in this one…Friday should do it!!

Things to make me go mmmmmm!!!!

Congratulations to David Morris on his silver in the aerials..go Chumpy tonight!!

 David Morris

Bizarre news today of a co-pilot hijacking his own plane and flying it to Geneva…now this seems like a brilliant idea especially given that the Swiss Air Force only work office hours apparently as there was no fighter alerts as the plane came into Swiss airspace.. instead the French and Italian airforces had toe scort the passenger jet down as the Swiss don’t seem to have the funds for a 24 hour service…nothing ever happens outside office hours apparently…so if you want to invade Switzerland …..seems too easy really?

images (3)

Asleep at the wheel!!

Bendigo and Adelaide Bank has posted a slight decline in first-half profit, but remains confident of the lender’s position in the market for the remainder of the year, buoyed by a lift in cash earnings. In the six months to December 31, Bendigo posted a net profit of $180.7 million, a 4.6 per cent decline on the $189.4 million recorded in the previous corresponding period.

Global packaging group Amcor has reported a 21 per cent jump in first half profit after tax for its continuing operations to $326.6 million as earnings were bolstered by recent acquisitions and strong growth in emerging markets.

Cash non converters had a shocker..apparently due to regulations…shame…, net profit after tax attributable to members slumped 46.4 per cent to $9.88 million, from $18.43 million

Yet another reason to continue to love Aussie Banks… Seven years ago, 65 per cent of all new home loans were issued by the big four banks. Now almost 80 per cent are.

An emerging story in the US is the massive drought to hit the West Coast..this will have ramifications for food prices in a big way..according to figures the size of the total U.S. cattle herd is now the smallest that it has been since 1951…sounds like burgers are out!!According to NBC news in California…

In the state’s Central Valley — where nearly 40 percent of all jobs are tied to agriculture production and related processing — the pain has already trickled down. Businesses across a wide swath of the region have shuttered, casting countless workers adrift in a downturn that calls to mind the Dust Bowl of the 1930s.

download (8)

These are the same guys that were predicting the end of the world for Gold..and now they are raising bullish gold wagers as hedge funds go long due to signs of a slowing U.S. economy which have spurred demand for haven assets. Billionaire John Paulson maintained his bullion holdings last quarter….good for him… The net-long position climbed 17 percent to 69,291 futures and options in the week ended Feb. 11…so now everyone has gone from short to long..Gold is $1330 and there is talk of $1400…meanwhile the Digital Tulip continues to wilt…now sub $300…oh how the mighty have fallen….like Justin Bieber this will just be an unpleasant memory in two years time…

More jobs losses.. Alcoa has announced that it will shut its Point Henry aluminium smelter and two rolling mills, costing a total of 980 jobs.Alcoa said the smelter, where 500 workers are employed, would cease operation in August…now I know the Government has a plan for turning us into the clever smart country with high tech jobs all round..I know they do ..don’t they? Wouldn’t bank on it!!

Nasty..seems the fizz is going out of CCL as they reported a shocker..wrote down the value of SPC to three tins of baked beans..they are struggling in the supermarkets as Pepsi eat their lunch and even Indonesia is looking troubled… CC Amatil’s bottom line full year net profit down by 82.5 per cent to $79.9 million, against a profit of 457.8 million in 2012.

 

And finally….thanks to Andrew…

Right at the end of a game recently, there was a discussion about the obscene cost of entry into Premiership football games, the cheapest price of £60 and £100 per game is not uncommon.

An older chap being interviewed said he could recall many years ago arriving at the turnstiles

“That will be ten quid, mate”.

“What?!” the old chap said “I could get a woman for that!”

The guy on the turnstile retorted, “Not for 45 minutes each way with a brass band and a meat pie in the interval, you wouldn’t!”

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.

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

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

Advertisements