Morning sports fans,
Think we should start with a prayer today…repeat after me
A US Investors prayer
Who art in Manhattan
Yellen be thy name
Thy QE come
Thy print be done
By Ben as it is with Janet
Give us this day our daily 1.5 billion
And forgive us our savings
As we drown with the debtors
And lead us not into deflation
But deliver us from volatility”
Another nothing night overseas as consolidation seems to be the name of the game. Pretty hard to find bargains out there..most of the recent gains have been M&A Activity driven with the Investment banks feasting away.16.5 P/E for the Dow is pretty rich..anyway our market tried really ,really hard yesterday to look good but failed miserably…the early enthusiasm was quashed by two profit downgrades in PBG and TRS again! Consumer sentiment is horrible at the moment and the warm weather is not helping retailers who don’t know whether they are coming or going..
So to our market today…not much really..expect more shuffling around like a dead man walking…as usual the banks will be the key with reports that the funding they can get from overseas is so cheap they are competing hard on mortgages..so although the RBA hasn’t cut rates and is not likely to, the banks are doing it themselves…so the RBA irrelevant…welcome to the new world…”Bankers are doing it for themselves”
Expect the juniors to suffer on tax loss selling..expect more confessions on rubbish numbers especially from mining services..not the bottom yet I suspect..need a high profile casualty..more bids for things and more money being sucked out by the IPO market.
Idea of the Day
Now everyone out there tends to focus on the doom and gloom in the Iron Ore price and Coal…suggestions from one leading astrologer that the Aussie dollar will hit parity wont help either …but beneath all this negativity its worth having a look at other metals…
Benchmark LME zinc closed at $US2132 a tonne after hitting a 15-month peak of $US2145 in the previous session, while benchmark aluminium was at $US1900 a tonne, after hitting its highest level in 9-1/2 months – at $US1918 – on Monday. Platinum due to the South African Miners strike is virtually unchanged since the strike was called back in January but Palladium, a metal that can be used instead of platinum by some manufacturers, has risen to $847 an ounce – its highest price in three years.So it’s not all gloom out there people…just Gold, Iron ore and Coal!!
Yesterday we saw a new Investment and funds management business called Elanor…currently called Moss Capital with Bill Moss from Mac Bank at the helm, along with Glenn Willis…it’s a IPO and if anyone is keen to get some ,let me know by lunch time…prospectus available but Instos pretty keen on it ..so won’t be many around
Offer price $1.25
Enterprise Value/FY15 Forecast EBITDA is 8.9 X
Forecast distribution 9.3%
They own the Cradle Mountain lodge, the Koala Park at Doonside and the Eagle Hawk in Canberra…looks ok and the deal is underwritten by Moellis..allocations will be small though but if a Hotel Tourism and Leisure Funds management biz are your thing with a high yield let me know..I can send you a prospectus..
Things to make me go mmmmm!!
Yet another school shooting in the US..apparently the solution is bullet proof mats that cover kids when a gun man goes on a rampage…so obvious really…don’t take our guns just give kids bullet proof accessories!!!!
In the US these days university graduates are coming out with such huge debts due a combination of high fees and high interest rates that they are deferring buying houses and cars…not only that but the debt has grown to astronomical proportions..currently around $1.2 Trillion !!!!Of course that copuld happen here could it…Uni fees will fall as competition increases for students..here’s a question have you ever known an industry that has deregulated and the costs have fallen???Really???How dumb are we…here in NSW we are selling our infrastructure to invest in more infrastructure…sell electricity to build some railways…why don’t we just borrow againstv the assets and build instead..interest rates are pretty cheap now..crikey Spanish 10 years are below US 10 years!!!!
Now I know we are supposed to have won in Iraq but news that the second largest city has fallen to Al Qaeda extremists is hardly a glowing endorsement of what the west achived there. Expect Afghanistan will go the same way once the Us and coalition of the willing finally leave…
And the IPOs keep on coming…more on the way…not sure this is a good sign…all these guys trying to cash in in the buoyant market conditions…all so ‘87!!!
Here four in the wings:
- Pepperstone FinancialAustralia’s largest foreign exchange broker, is gearing up for a float in the final quarter of this year.
- Smartgroupthe owner of salary packaging group Smartsalary and fleet leasing company Smartleasing, will lodge the prospectus for an initial public offering next Monday to raise up to $170 million, at a price range of $1.55-$1.75 per share.
- Software business Vista Group will meet fund managers in Melbourne today in the first round of marketing for a planned $200 million float. Auckland-based Vista is the world’s largest cinema software business.
- Family-owned Company Winnings Appliances has appointed Goldman Sachs and Macquarie Capital to explore an initial public offering.
Britain is on track for a record year for flotations as companies press ahead with initial public offerings (IPOs) despite signs of investor fatigue.So far this year, 40 companies have raised £5.7bn after the market for new shares went into overdrive following years in the doldrums, figures supplied by Thomson Reuters show.
In China the government is moving to stimulate…..The People’s Bank of China (PBOC) said the targeted 50-basis-point reduction in the reserve requirement ratio (RRR), effective from June 16, would also apply to financial firms that disburse consumer or auto loans.
Seems the cheque isn’t in the post as Australia Post cuts 900 jobs ..apparently no one sends letters anymore…didn’t see that one coming..Kodak moment?
The US home ATM is tapped out?
5 U.S. soldiers killed in Afghanistan may have been the victims of a friendly-fire incident.
Is this a bigger political bet than a Hockey Budget???A punter in the UK has slapped down 400,000 quid on Scotland to vote Nay laddie!!!…and the odds 1/ 4 on so if he wins he makes 100 grand on a 400 grand bet…
United Kingdom’s pubs shutting up shop at a rate of 28 per week.
Here are the secrets to a long life apparently
- Eat well and relax
- No alcohol, plenty of water… and a good cigar
- Smoke, drink and make merry
- Garlic, porridge and prunes
- Raw eggs and plenty of sleep
- Find a good partner
- Mind your own business
Shortly after a British Airways flight had reached its cruising altitude, the Captain announced:
‘Ladies and Gentlemen, this is your Captain.
Welcome to Flight 293, non-stop from London Heathrow to Oslo. The weather ahead is good, so we should have a smooth, uneventful flight. So sit back, relax and… OH, MY GOD!’
Some moments later the Captain came back on the PA; ‘Ladies and gentlemen, I’m sorry if I scared you. While I was talking to you, a flight attendant accidentally spilled a cup of hot coffee in my lap. You should see the front of my pants!’
Ole, sitting in the plane yelled out: “Vat da Heck, you should see da back of mine”
So did you miss me yesterday?nah though not…need more jokes though keep them coming..not easy to offend either!!
If anyone is interested in courses for Sharemarket Education check out these nice people..actually its me!!www.shareknowhow.com.au