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Morning all,

Worse than expected economic numbers were shrugged off last night in the US as M&A activity took front and centre. There was a drug deal and rumours that Apple would buy Tesla…not sure what those guys were smoking..anyway expect a little drift today as company specifics will take centre stage again.Carl iCan did pretty well..this guy is good…$1.7bn profit from the drug deal..who needs the Columbians! And this is legal!

images forest

Yesterday we got a raft ,actually more like a life boat full, of company results but the Big Daddy of them all ,BHP, showed what a quality operation can do. Also I guess shows how bloated with costs and complacent about the never ending story of the mining boom some of these behemoths had become..results season has been about costs out across the board..and it seems to be working..none more so than BHP which is making like bandits out of its Iron Ore business. Think I may have mentioned this once or twice before here and on TV. Anyway the mighty Aussie has rallied for nine days..could this be ten in a row…we shall see..but I believe that the shares have further to run ..would not be surprised to see them try for $40…but may need a breather first..

Today we will back and fill…the rise yesterday was a really just a push at the close and the ASX 200 needs a breather..5062 to 5400 in two weeks…who said the market was boring…big reasons is the rise of the (iron ore) machines and the banks in sync…company profits have been ok and costs out the feature..good ones tend to come early…

Idea of the Day

Now my job is to help you guys make money..I try my best to come up with fool proof ideas…lets face it they have to be for me to come up with them!…good to see that my GEM idea to hit $4.00 has come to fruition..well at least $3.98..I was buying these for clients in the mid $2.00s…so can’t say you were told…time to sell some I suspect…they have run hard and fast and at these prices are maybe a little toppy!

So what is the next recommendation that I am sure most will gloss over…lots of research coming clients way as analysts work their little socks off regurgitating what the company tells them….anyway to this end I liked the AMC result yesterday..got whacked by the market but I think unjustifiably so..may be worth putting on the list of solid blue chips worth buying…demerger may have distracted management but with EPS up 21.5%  Div of 19.5c and the Orora and emerging markets performing well with guidance unchanged I think the market was being a little unfair..still I am no CFA but looking at the charts it is on support and could bounce back an easy 5% in the next few weeks..

Things to make me go mmmmmmm!!!

Company reporting yesterday was frantic and my afternoon report on www.beeksdownunder.com gives a quick and dirty round up of what happened.

Out today are Ausenco, APA Group, APN News and Media, Brambles, Fortescue Metals Group, Mount Gibson Mining, Recall, SEEK, Suncorp, Southern Cross Media, Toll Holdings, Wesfarmers, Woodside Petroleum.

Run Forest Run! Dublin based US company Actavis Plc  the world’s second-largest generic-drug maker ,agreed to buy Forest Laboratories Inc for about $25 billion in a deal that will transform it into a developer of brand-name drugs.

Anyone out there play Candy Crush..come on you know who you are..anyway the makers of this Facebook game are proposing to list in the US. They have reportedly filed a $500m IPO for later this year as revenue rose an elevenfold in 2013 to $1.9 billion. Could this be the ultimate one hit wonder!

I-hate-candy-crush-meme

US Household debt increased 2.1 percent, or $241 billion, to $11.52 trillion, the biggest gain since the third quarter of 2007, the report showed. The level of debt last quarter was $180 billion higher than a year earlier.

It seems though that the Chinese are bailing on the US as Chinese Treasury holdings plunged by the most in two years, after they offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! So who may you well ask were the buyers…Belgium apparently!! Well Zombieland anyway! It was the second largest dump in US history with only December 2011 bigger!

Meanwhile in the land of make believe that is Spain..bond yields have fallen dramatically as apparently the recession is well and truly over..few flies in the ointment..must be Spanish flies..anyway..unemployment is at record highs, suicide rates are at record highs, youth joblessness is at record highs, and now, to top it all off, Spanish bad loans are at record highs once again (at 13.6% of all loans)

The age of Central bank money printing is not over. The Bank of Japan got back on the front foot yesterday boosting lending programs and the PBOC sucked $8bn out of the repo system. Things must be ok there now?

Regis Resources is expected to reveal that a “significant weather event” at its flagship gold project has forced the closure of one of its mines

In the US the fear index or VIX has fallen back from the 18/19s to around 13.9 last night…happy days again…usually though I believe this is a contrary indicator and high readings indicate that maybe it’s a time to buy and low readings time to sell…now it is not that low yet but as it approaches 12.5-13 I would be looking at taking profits.

UK inflation has fallen below 2% as the miracle continues…growth and no inflation, low rates and the World Cup to win…what could go wrong…

And as the World appears on the surface to be cooperating with each other to coordinate the global recovery, countries are busy erecting fire walls round their domestic banking businesses. It’s the US turn now to vote on new rules stipulating that foreign banks must have $50bn in assets in the US and not the more benign $10bn! Course if they have more assets there they can tax and ultimately confiscate them at some stage if it all goes you know what up!Seems the US doesn’t trust Johnny Foreigner to regulate their own banks..especially given the US did such a great job themselves!

Seems it wasn’t so Chumpy after all..he didn’t carve it!

And finally….

A man and a woman were having a quiet, romantic dinner in a fine restaurant.

They were gazing lovingly at each other and holding hands. The waitress, taking another order at a table a few steps away, suddenly noticed the woman slowly sliding down her chair and under the table – but the man stared straight ahead.

The waitress watched as the woman slid all the way down her chair and out of sight under the table. Still, the man stared straight ahead.

The waitress, thinking this behavior a bit risque and worried that it might offend other diners, went over to the table and, tactfully, began by saying to the man, “Pardon me, sir, but I think your wife just slid under the table.”

The man calmly looked up at her and said, “No, she didn’t. She just walked in.”

Have a great Wednesday…

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.

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

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

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