Morning sports fans,

Another quiet day in store as we grapple with a Sydney heat wave….markets were closed in the UK and US for holidays so no real lead from there although everyone in Zombieland is getting excited about what Super Mario is going to do for the Euro economy in June…Its time to actually step up and do something rather than the “whatever it takes” rhetoric that has worked so far…trouble is the peasants are revolting….Euro elections over the weekend show the level of disaffection with the status quo…in the UK, Nigel Farage and his UKIP are rattling the cages of the establishment..and good for him..he is asking legitimate questions…

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Probably gets his cigars the same place Jokin Joe does…

 

I suspect though much like Howard did here with our Pauline, Cameron will align some of his policies with Farage’s. Anyway the important thing is that Pollies are now on notice that things must change and not just for the 1%…so Mario time to shine….his job is pretty tricky..get growth up unemployment down from 12.7% and get inflation up to 2%…should be a breeze…

 

Expect a  modest up day today..I think it’s fair to say that as we approach the end of May, my caution has been a little misplaced so far..although the gains for May have hardly been spectacular with a 23 points gain for the month so far…so although we haven’t seen the Sell in  May this year..yet…it has hardly been a great month..I still suspect that heading into financial year end we will see more sideways to drifty down movements..the big kicker has been corporate activity with bids everywhere..yesterday SAI Global sacked its CEO and got a bid in the same day!!

Idea of the Day

The market will start to worry a little about the TLS Strategy…in the last few days the company has said the growth in mobiles will slow and that 30 % of its revenue will come out iof Asia in years to come..these are enough to send shivers down the spine of the mums and dads that have bought this puppy for its yield…do not despair peeps..this guy does not know how to spend money…he has been in the job for five years and done a banging job…I feel sure that in those years he has had numerous opportunities to squander his hard earned and of course shareholders fund..and he hasn’t…maybe he wants to leave a legacy…something big to ensure he is enshrined in TLS mythology…I am sceptical of this and feel that he will use his money wisely and not splurge..to this end I feel that any weakness in the coming weeks is an opportunity to buy..

Good to see my recommendation of LYC making some gains…today is the last day of the pricing period for its SPP which will be oversubscribed…for those avid reader4s you will know that I have talked this one for a few weeks ago  and even talked it on Sky biz a week or so ago so it’s nice to see it perform..I reckon it has more upside…20 c is possible…may not happen overnight though.

One I got wrong so far is UNS which continues to test my patience but happy to hang in..

Things to make me go mmmmmmm!!!

Had the pleasure yesterday to speak to a year 10 commerce student body in a well-known Sydney school…very entertaining and hope that the boys got something out of it…great to impart some words of wisdom(not) to these eager young beavers..the other guest was good anyway!

Pfizer have deceived to drop their bid for AstraZeneca…

The unemployment rate in Ireland has fallen less than expected in the first quarter of the year. The change, from 12.2% to 12%, failed to reach a 11.8% rate estimated in recent claims data. Unemployment fell for the eighth quarter in a row from a high of 15.1%, but did not match the eurozone average of 11.8%.

Looking forward to negative interest rates in Zombieland…think it will take more than this…US Fed has so far pumped in over $3 trillion in stimulus and their economy is hardly going gangbusters..

World Cup opens 13th June….Go England Go Socceroos…reckon neither will make it past the group stage…seems the cup is not all that popular at home…The Brazilian team was jeered yesterday… Brazil is spending about $11 billion to stage the World Cup from June 12 to July 13…Krakow in Poland has withdrawn its bid for the winter Olympics after its citizens voted that they didn’t want it!!

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Who needs Bradley “Chelsea” Manning when the White House just emails the name of its top spy in Afghanistan to the media!!!The “chief of station” name in Kabul – was included by US embassy staff on a list of 15 senior American officials who met with President Obama during his surprise Saturday visit to Bagram Air Field. Nice…bet he choked on his cornflakes!!

Chelsea-Manning

 

Think Elvis Costello had it right…I don’t want to go to ….

Just what the world needs another huge Iron Ore project.. Guinea signed a deal with Rio Tinto, Chinalco and the International Finance Corporation on Monday, setting out conditions for massive infrastructure investment to revive the giant $US20 billion ($21.6 billion) Simandou iron ore project

 

Had a very interesting presentation last week on a small mining company in Zimbabwe…now the interesting thing is the opportunities that are emerging there..certainly the big guys are getting set as the country emerges from the disaster that was and still is Robert Mugabe…this is going to be a big story in two years time..by which time it’s too late for the bargains..

TWE was one I pushed at 3.80 for the takeover..well well well it happened or at least they were approached late at night in a bar drinking Grange and asked a question..they have since written to shareholders to tell them that they slapped the guys face and reported him to the management…this one is a sell at these levels..you have made your money move on!!

 

And finally……

The Toyota Manufacturing Plant near Georgetown, feeling it was time for a shakeup, hired a new CEO.

The new boss was determined to rid the company of all slackers. 

On a tour of the facilities, the CEO noticed a guy leaning against a wall. 

The room was full of workers and he wanted to let them know that he meant business. 

He asked the guy, “How much money do you make a week?”

 

A little surprised, the young man looked at him and said, “I make $400 a week.  Why?”

 

The CEO said, “Wait right here.”

 

He walked back to his office, came back in two minutes, and handed the guy $1,600 in cash and said,

“Here’s four weeks’ pay.  Now GET OUT and don’t come back.”

 

Feeling pretty good about himself the CEO looked around the room and asked,

“Does anyone want to tell me what that goof-ball did here?”

 

From across the room a voice said, “Pizza delivery guy from Domino’s.”

 

Have a great Tuesday

Clarence

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