Morning all,

Did you miss me? No didn’t think so!

Over in the US and Europe we had a small pull back on Friday after all the M&A activity and the reporting season started to falter a little. Still good support so this will be seen as a buy the dip type opportunity…here we will slip back a smidge but the market is in ‘Damn the Torpedoes’ mode so nothing much to worry about although Iron Ore stocks may suffer a little more as the stockpile grows in China and the price has slipped back from 120 to 111..

Anyway the market has been plodding along according to the bull script in the last week or so…now I have been urging some caution but the banks have powered ahead breaking records along the way. The bank package is now worth close to $186….amazing…now in the next week or so we get reality…three will report and expect to see more cash for shareholders ,less bad debts and more record profits…hard to argue with it and as I say “You buy the banks and you die with the banks”….Now at these lofty heights I would be looking at some judicious call selling against existing holdings..

patience_grasshopper

 

 

I am still of the view that May is a good time to be cashing in some chips…now the question always is where do I put the money…its burning a hole in my pocket and not earning any interest…as they used to say in Kung Fu ..Patience Grasshopper…opportunities will present themselves…there is so much money being raised in IPOs and Hybrids and placements that opportunities are like buses..there will be another along soon…of course if you live on the Northern Beaches soon is a relative term!@!

 

 

Idea of the Day-MQG

In this go getter banking environment…M&A heaven…superfund nirvana and upcoming infrastructure paradise ,we may see some more interest emerging in MQG…my old alma mater…I like this stock and wish I hadn’t sold all my options years ago but c’est la vie…expect it to push towards 60 bucks in the short term…weakness today after Dow fall may be a good chance to buy a few n’est pas?

Dividend yield improving..environment improving…14 PE and a good eps growth profile..buy this baby

Things to make me go mmmmmm!!!

Chelsea 2 Liverpool Nil!!!! Champions league this week.Looks like Man City will win the league..bummer..almost preferred Liverpool..almost!!

Goodman Fielder has said that the bid for them at 65 cents is too low…the bid is from Chinese Agri business company Wilmar…another leaky bid too as the stock has rallied 15% recently…suspect the bid will have to be around 75c to get a nod…yet another Aussie Agri company going to Johnny Foreigner..unless Hockey intervenes…. again!

There has been a Tsunami of M&A activity throughout the world…Drug stocks are in focus at the moment and now the GFF bid here..ok, it’s only $1.27bn but it’s a start…there will be more bids to follow as the Modern family episode ensures that the US knows where we are!!!

The first set of a Sanctions 1.0 that Obama managed to cobble together have been so successful!!!Not!…now we are looking down the barrel of AK47s in the Ukraine and it will not take much to kick off…Obama will fiddle with Sanctions 2.0 and an invasion seems inevitable now..Gold should do well and we may finally see it perk up on this trouble…

For the first time in history, wealthy Chinese top wealthy Russians are the biggest buyers of Manhattan real estate.

Amazon predicted an operating loss in the current quarter pushing their shares down 8.8%

US Student debt has nearly doubled since 2007 to $1.1 trillion, disproportionately driven by the growth in graduate-school debt.

I have been telling my kids this to emphasise the competitive world we live in but it’s worth saying it again..by 2020 195m Chinese will be graduates!!!that’s more than the entire working population of the US!!!

In China trading in Bitcons was halted by one of their big merchant banks…the digital tulip for the 21st century..

Premier Li repeated early calls that China is not considering ‘strong’ stimulus’ and that economic growth a bit higher or lower than the official goal of 7.5% is ‘within a reasonable range.’

It was 20 years ago yesterday that Apartheid collapsed and Nelson took over..A lot has been achieved but recently things are turning a bit sour!!More than 10 million people still lacking proper shelter and 24 percent of the workforce unemployed. here were 214 strikes and protests over the lack of proper sanitation, housing and local government services in the first quarter of this year and 714 last year, according to the Pretoria-based Institute for Security Studies. The proportion of the 53 million people living below the extreme poverty line of 290 rand a month fell to 31.3 percent last year from 41.1 percent in 1994 as the number of welfare grant recipients swelled to 16 million from 2.7 million, according to official data.

The French ecology and energy minister, Ségolène Royal, has reportedly laid down a list of rules for her staff.The office guidelines are alleged to include an edict that staff stand up when she arrives, and that people do not use the corridor that runs next to her office when she eats, as the noise is distracting.

Siemens entered the battle for French engineering group Alstom on Sunday, after the French government encouraged a European counterbid following a $13bn (£7.7bn) offer last week by the US company General Electric.

Spare a thought for Wirral Cricket Club as they were bowled out for a grand total of three!!And two were leg byes!!!No 11 scored the only run!!!that goes someway to  explaining how England lost the Ashes so comprehensively!!

 

And finally…

A husband and wife are shopping in their local supermarket.  The husband picks up a case of Budweiser and puts it in their cart.  “What do you think you’re doing?” asks the wife.

 

“They’re on sale, only $10 for 24 cans,” he replies.

“Put them back; we can’t afford them,” demands the wife, and they carry on shopping.

A few aisles farther on, the woman picks up a $20 jar of face cream and puts it in the basket.

“What do you think you’re doing?” asks the husband.

 

“It’s my face cream. It makes me look beautiful,” replies the wife.

Her husband retorts, “So does 24 cans of Budweiser, and it’s half the price.”

 

That’s him in aisle 5.

aisle 5

 

 

 

 

Have a great Monday….

 

Clarence

XXXX

 

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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