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Afternoon sports fans,

A sloppy day all round with negative leads from overseas and lack of volume hurting our market. In the end we closed down 46 points at 5436 with a range of 5476 and 5417.We seem to be going into hibernation as the ‘Jokin Joe’ $3000 budget night extravaganza looms nearer. It was red across the board with the banks and financials taking it hard, none more so than Macquarie Group Limited (A$59.90, -1.1%) which has run pretty hard against the flow in the last few days. National Australia Bank Limited (A$33.84, -0.8%) results due tomorrow so expect more records than EMI and maybe some news of the UK although given the UK is the best performing economy around for a country mile not sure why you wouldn’t hang on to it. Of course young Mr Clime is leaving so maybe that will prove a catalyst for some changes but don’t expect too much. Expect the stock to pull back much like the others have post their results. Materials and resources were also in the dog house as you would expect today with Fortescue Metals Group Ltd (A$4.63, -3.5%) feeling the wrath of the bears claws and BHP Billiton Limited (A$37.17, -1.3%) and RIO Tinto Limited (A$60.60, -1.5%) also in the spotlight. Telstra Corporation Limited (A$5.18, -1.0%) eased as did consumer stocks after retail sales numbers today gave little hope to the bulls and the budget to hurt in the next few months. A bright spot in the sales numbers were the café and restaurant spending coupled with all things associated with the housing boom like furniture, rugs and appliances etc etc.

Healthcare stocks eased with Csl Limited (A$69.08, -0.8%) leading the way and energy stocks also fell to earth led by Woodside Petroleum Limited (A$41.00, -0.6%). Little movement in the Fight Club stocks of #NEC# and Crown Resorts Limited (A$16.37, +0.1%). Other gamblers weren’t so lucky with Donaco International Limited (A$1.12, -3.4%),Tatts Group Limited (A$3.02, unch),TABCORP Holdings Limited (A$3.74, -0.3%),Ainsworth Game Technology Limited (A$4.03, -1.7%) and Aristocrat Leisure Limited (A$4.99, -2.5%) all busting today on 22.

Bucking the trend today were Kathmandu Holdings Limited (A$3.77, +7.4%),Skilled Group Limited (A$2.74, +4.2%), Cover-More Group, Downer EDI Limited (A$5.20, +2.4%),APN News & Media Limited (A$0.68, +3.0%) and Peet Limited (A$1.255, +2.9%) whilst throwing the towel in were Henderson Group PLC. (A$4.42, -4.7%),Atlas Iron Limited (A$0.83, -4.6%), Sandfire Resources NL (A$5.53, -4.7%),BC Iron Limited (A$4.00, -4.3%), Arrium Limited (A$1.125, -3.8%) and Mount Gibson Iron Limited (A$0.71, -2.7%) whilst the worst performer today was #ESR# and for the lucky ones #IRG# following a copper project update.

Volume was miserly and not even an ordinary model would have got out of bed for the meagre $3bnfor a Wednesday. Aussie dollar was 93.40,Gold up to $1312 and the digital tulips were $457.

The MSCI Asia Pacific Index slipped 1.4 percent by 1:17 p.m. in Tokyo. And as Alibaba joined the rush to IPO in the states, Japan’s SoftBank, the largest investor in Alibaba Group Holding Ltd., fell 4.2 %The 40 thieves company is looking at a possible raising of $20bn topping the $19.65 billion offering by Visa Inc. in 2008

Stocks and Stories

Lynas Corporation Limited (A$0.135, -10.0%) continued to fall prey to the bears as the stock continues to slide. News of the SPP and placement have not been enough to stabilise the ship. The pricing period for the SPP does not start for a couple of weeks so expect pressure to remain on these puppies for a while. Holders will sell as they know they will get stock in the SPP at a lower price plus they get to take an early tax loss.

Stavely Minerals Limited came on today at a small premium to the market trading at 21 versus a 20c issue price.

The ASX Limited (A$35.49, +0.4%) chief says we should be concerned here about high frequency trading. It’s different here. We don’t seem to have much trading at all these days!

Bullabulling Gold Limited (A$0.071, -4.1%) rejected the bid from Norton Gold Fields Limited (A$0.10, -16.7%) as an insult and wholly inadequate.

Fairfax Media Limited (A$1.00, -1.0%) continues to push towards that $1.00 level as it has announced another redundancy round, targeting up to 80 jobs across photography, sub-editing and travel and food across its metropolitan mastheads.

Retail sales have risen for the third straight month, but came in well below economists’ expectations.Retail trade rose by 0.1 per cent in March. Economists had tipped retail trade to grow by 0.4 per cent after 0.2 per cent increase in February.

Kathmandu Holdings Limited (A$3.77, +7.4%) rode the chill well. Not sure what chill as there hasn’t been one in Sydney but still their third quarter sales grew by nearly 4 per cent due to colder weather in Australia and New Zealand. The company recorded sales of $NZ93 million in the three months to April 27, up 3.6 per cent from the same period a year ago.

Brickworks Limited (A$13.47, +0.5%) Brickworks is to tell an Investment Bank seminar today that third quarter (to April) building materials revenues were up better than 15 per cent with its key brick unit ahead more than 20 per cent.

Tomorrow’s News Today

In news today there is now an app that tracks the share trades of Billionaire investors in the US. The man behind it has also created a iBillionaire index figuring that these guys know what they are doing. Seems he may be right. If all the little punters follow them in they will be even more right too! The iBillionaire index has returned 14 per cent per year over eight years, double that of the S&P 500.

It appears that the Debt Levy tax is so unpopular that Abbott and Hockey are letting the rich write the tax law themselves. Much like Gillard did with the carbon Tax. As a result I am sure only three people in Australia will end up paying it and they are all lawyers on the ICAC commission that the party doesn’t like!

The US has joined the search for the 200 young girls missing in Nigeria. Here’s hoping that they can find and save them.

Not sure this is right because it’s from a left wing pinko web site but it does make you think. 5.3 Billion Dollars a year is the entire budget of UNHCR to help support & protect 10,000,000 refugees globally. 3 Billion Dollars a year is what Australia spends to lock up 6,937 refugees.

Not sure this is what the Fed does but a lady in the US has just been jailed for scrubbing five dollar notes clean and then running them through her inkjet printer and turning them into $100 notes…brilliantly simple..Janet? Over to you! The Greeks are on to this and have cleaned up some $100 bills and printed them with $5!Of course if you are a tech entrepreneur you don’t even have to have a $5 note just the mere thought that you may hold the $100 is enough to give you a billion dollar valuation. Because it’s different this time!

Maybe I am not the demographic they are going for but I found “Frozen” just awful. However it has helped Disney being the highest grossing animated film ever. Really? Lion King and Shrek was so much better!

Read this today as well and found it slightly obscene.. Despite most hedge fund managers falling short on the market’s returns last year, the top 25 highest-earning hedge fund managers in the U.S. pocketed a combined $US21.15 billion. Amazing. They didn’t even beat the market but still they took home all that money! Actually they would have taken it to so many homes, one in the Hamptons, one in Manhattan, one in Aspen and one in London. The top fund returned 84% .John Paulsen had a good year!

Last week Spanish ten year bonds fell below 3% now it’s the turn of Italy with theirs falling below 3% too. All this while Europe is limping along in the casualty ward.

Seems that News has handed over the “Packer Whacker” pictures to the Police. It’s come to something when two giants of industry can’t go toe to toe in a public street .Not sure Lachlan will be on the Xmas card list.

That is all

416340-net es

 

 

 

 

 

 

 

 

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.

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