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Morning all,

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More later!!!



Uninspired on overnight moves except the gold price and Iron ore..Big miners were hit in London so expect more of the same here today as the ore price slipped another 1%.US markets tried hard to make all time highs but failed and economic numbers were once again weaker…must be the weather..Zombieland growth numbers were upgraded from sweet FA  to not much! This is not going to be fixed in a hurry….suspect we will still see Zombieland stuck in a mire for years to come.

Anyway our market needs a breather…too much too young! Such a big rally as the shorts were made to suffer on better than expected corporate numbers but the impulse is waning and gains from here will be harder especially as they go ex dividend…corporates have splashed the cash in a large way..they know how to get their share price up after all..just give the punters a yield and all will be well..trouble is that where is the growth going to come from if they squander their cash on dividends…feel that again without a rush of blood to the head in Iron Ore it’s hard to see us kicking on …thought yesterday we might have a go at 5600 but we do need the Iron Ore price to play ball..and it’s not..there are some big games being played at the moment in currency markets with the Yuan and the US dollar…China does look like it is having some government engineered credit crunch…could prove dangerous…anyway no one seems to be looking east at the moment only West as takeover fever is evident around the world…we may yet join in…we shall see…

Expect a day of weakness as big miners slip..gold stocks still not quite getting excited despite the gold price hitting $1342 last night..not sure they believe it yet!!

Reporting season is winding up with QAN the focus tomorrow..


Reporting today:


IRESS, Lend Lease, St Barbara, Westfield Group, Westfield Retail Trust, Whitehaven Coal, WorleyParsons, Wotif.com

Idea of the Day FXJ and DNA

For some months I have likde Fairfax…I have written more than once how the valuations of their digital competitors is massive compared to them..Domain ,Drive, RSVP etc…look at Car Sales capped at $2.5bn,Real Estate .com at $6.4bn and Seek at $5.7bn…and there is FXJ capped at $2.2bn…much improved I grant you but these guys have something that Car Sales, Real Estate etc don’t have ..they have digital and analogue platform to push their digital sites…it was good to see that Charlie Aitken has now jumped on the idea I was pushing six months ago…he gets more press than me but he has a better agent!!

Anyway I still reckon that FXJ is on track to liberate the inherent value that is in their digital sites…crikey if Whatsapp is worth $19bn anything could happen…at 94 cents it is not such a screaming buy as it was at 50cents but it is worth it none the less….would be alert to buying on a pullback below 90…

Also wrote up some time ago DNA which is opening a new casino in Vietnam…numbers out ..company presenting this afternoon but I am a fan and expect it to move higher as the opening draws closer..soft launch in May with 300 rooms and 40 tables…will be 41.30 by the time the launch happens..just saying…

Things to make me go mmmmmmm!!!

Favourite of mine Mortgage Choice has just confirmed bumper record numbers and an increased dividend…well done to those that bought and stuck with my idea..starting buying them at 2.00 now they are $3.20…not bad..

Flight Centre has broken another record after posting a 22 per cent rise in first-half net profit to $111 million as Australians’ love affair with overseas travel continued unabated.

Lend Lease made a net profit of $252 million for the six months to December 31, down from $301 million a year ago.Profit from the company’s Australian business was down almost 27 per cent to $223.5 million, due to $25 million in restructuring costs and bid costs associated with pursuing major projects.

Good to know that I am funding QAN debt now as well..thanks Tony!!!do I get Frequent Flyer points as a tax payer to do that!!

Ukraine is not a done deal…the Russians are not going to go quietly into the night..in fact they are talking about default..and there is a real fear of separatists gaining control in some regions and splitting the country apart…

China’s corporate debt just hit a record $12 trillion. Chinese non-financial companies held total outstanding bank borrowing and bond debt of about $12 trillion at the end of last year – equal to over 120 percent of GDP – according to Standard & Poor’s estimates.

Now it’s hard to feel sorry for people who punt in digital tulips..but the Japanese Mt Gox Bitcon exchange has gone off line..leaving punters worrying about where their money has gone…you know what guys it isn’t real money it is just a line of code..1’s and 0’s…really did you think it was real..you should know better than that ..so easy to hack and steal…where there is a will there is a way!

Unidentified thieves stole 744,408 Bitcoins from the exchange — about $365 million at current rates — and that the theft “went unnoticed for several years.”

And from my friends at www.zerohedge.com…seems that JP Morgan has spent nearly $30bn in legal expenses since 2010!!!

JPM legal fees

The Greek revival continues as Olympiakos beat Manchester United 2-0!!!..shame…

Our glorious leader Peta Credlin looks to unveil a $330m drought assistance package to farmers…will bring some welcome relief…also it seem sthat some people voted twice in the recent elections..twice!!!I didn’t want to vote once for any of the current goons in Canberra!!!


Remember that great film “Blood Diamond” about the illegal diamond trade from Conflict Countries..well it seems that there is also Conflict Gold… one of the world’s biggest gold refineries ignored guidelines designed to stop the trade in so-called “conflict gold”. It paid out more than $5bn in cash for the metal and accepted gold from more than 1,000 customers walking in off the street with no paperwork. Kaloti Group, a $12bn refining and trading business based in Dubai has been named and shamed in a leaked report that a British Newsppaper is running. Kaloti owns the largest refinery in the Middle East and is at the centre of Dubai’s booming gold industry, estimated to be worth $70bn in 2012.

“When’s the last time the world wasn’t falling apart?” Blood Diamond

And finally….Most people have already seen versions of this but it is still good!


You have 2 cows.
You give one to your neighbour…

You have 2 cows.
The State takes both and gives you some milk

You have 2 cows.
The State takes both and sells you some milk

You have 2 cows.
The State takes both and shoots you

You have 2 cows.
The State takes both, shoots one, milks the other, and then
throws the milk away

You have two cows.
You sell one and buy a bull.
Your herd multiplies, and the economy
You sell them and retire on the income

You have two cows.
You sell three of them to your publicly listed company, using letters of credit opened by
your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption
for five cows.
The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company.
The annual report says the company owns eight cows, with an option on one more. You sell one cow to buy a new president of the United States , leaving you with nine cows. No balance sheet provided with the release.
The public then buys your bull.

You have two giraffes.
The government requires you to take harmonica lessons.

You have two cows.
You sell one, and force the other to
produce the milk of four cows.
Later, you hire a consultant to analyse why
the cow has dropped dead.

You have two cows. You borrow lots of euros to build barns, milking sheds, hay stores, feed sheds,
dairies, cold stores, abattoir, cheese unit and packing sheds.
You still only have two cows.

You have two cows.
You go on strike, organise a riot, and block the roads, because you want three

You have two cows.
You redesign them so they are one-tenth the size of an ordinary cow and produce
twenty times the milk.
You then create a clever cow cartoon image called a Cowkimona and
market it worldwide.

You have two cows,
but you don’t know where they are.
You decide to have lunch.

You have 5000 cows. None of them belong to you.
You charge the owners for storing them.

You have two cows.
You have 300 people milking them.
You claim that you have full employment, and high bovine productivity.
You arrest the newsman who reported the real situation.

You have two cows.
You worship them.

You have two cows.
Both are mad.

Everyone thinks you have lots of cows.
You tell them that you have none.
No-one believes you, so they bomb the ** out of you and invade your country.
You still have no cows, but at least you are now a Democracy.

You have two cows.
Business seems pretty good.
You close the office and go for a few beers to celebrate.

You have two cows.
The one on the left looks very attractive…


Have a great day




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