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Morning sports fans,

Breaking news today…Commonwealth Bank are making a statement today at 10am..Financial Planning the focus understandably…expect a Mea Culpa from Ian Narev…

ian

 

Big day yesterday. Probably not so big today. After two days of losses we bounced back aggressively with half the gains in just 8 stocks…usual suspects…Overseas markets were buoyed by ADP jobs numbers above expectations but big number tonight pre the July 4th long weekend..

 

The Whooska day yesterday was hardly a surprise and does nothing to dent my feelings of caution..we seem to be bobbling about at the moment on thin volumes and the takeover frenzy that is gripping the world…Interestingly most companies are now paying less cash for their acquisitions..just as the Fed and others print money so do companies as their scrip gets more valuable…so why pay folding when you can pay with inflated scrip…

 

Expect some residual enthusiasm to fade …Trade numbers yesterday were horrible..pointing to a serious slowdown for GDP…no rate cuts though..don’t want to stoke the housing fires..

Some backing and filling today…

Idea of the Day

Bit of an update yesterday from LYC as they are moving their Execs to KL from Sydney..now I took this as a positive but the market took it as a negative..the new CEO is moving to base the company where it needs to be ,on top of everything..I think this is a good thing..they also said demand for Rare Earths was strong and that despite problems they are on track..I am still a holder but it is trying my patience…

Good to see my UNS rally yesterday..finally!

New ideas? Think quietly resources may be the place to be …few things happening…also Oil and gas stocks with US exposure..SEA and SXA spring to mind..

Here’s a blast from the past..not been a stellar success under the stewardship of Kieran Wulff but Buru (BRU) has moved to rid themselves of the ‘turbulent priest’ and get ‘Eric the Viking’ back on board plus a couple of industry heavyweights..the worm has turned..should be back on the shopping list..hit nearly 4 bucks at one stage and back to a dollar..time to buy I think..signed an agreement to ‘Frack’ too…worth a punt for risk seeking investors..

Things to make me go mmmm!!!

The rush for IPOs continues a pace with the latest to hit the boards yesterday being Smart Group or maybe not so smart..pretty nasty first day down from 160 to 144…dumped big time…you have to be careful with these floats ..in The US the IPO is up 21% on average since listing…in China over 30% but here not so sure..Dick Smith, Nine, Smartgroup, Spotless etc…anyway just saying that if Private equity are selling be careful they are not known for their generosity!!

The new black is the non-cash writeoff..everyone is doing it these days..Wesfarmers got into the act yesterday writing off a huge pot of non-cash on their Target business…sorry Targe…according to Gok!This and the liquor business is tired and a problem..Woolies has Masters ..Wesfarmers has Target…

Yellen spoke last night,she sees “pockets of increased risk-taking” in the financial system.You don’t say…every Central banker around the World is saying the same thing…Risk is not to be discounted…its not to be ignored..so when the inevitable bubble bursting happens every one of them will be able to say that “I told you so!!”

If you ever question the power of good marketing …one word GoPro…actually may be two ..not sure but this ‘camera stuck wherever’ company is now valued at $6bn!!!It has doubled since listing..it’s a camera in a plastic case for god’s sake! It’s not the Hadron Collider

3 Month Iron Ore closed at $96.62, up 1.8%..helps…supply being pulled back helping price move higher..

And it’s not just the Americans..the French are now at it as well with a company there BlaBlaCar raising money with a valuation of $1bn…they organise car sharing between cities for people with spare space in their cars…like a digital hitchhiker app…$1bn?Has the World gone mad. I used my thumb…

Nothing to see here move along!!Forward P/E’s are now higher than in 2007!Expect 20,000 and 2000 on the S&P…

overvalued market

 

 

 

 

 

In London an unmade bed surrounded by vodka bottles and used condoms has sold for $4.5m…value…apparently this is art…haven’t they heard of teenagers

bed460x276

 

One investor Tim Draper bought the entire stash of Bitcons from the US Government for $19m…30,000 were available seized from the drug site Silk Road…apparently he wants to bring stability and alternatives to developing nations!

 

And finally….I am on a broker trip to sunny Penrith today to visit the Indoor Sky Diving facility..(IDZ)….not sure if we are going to get a go…

 

Two Irish hunters get a pilot to fly them to Canada to hunt moose.  They bag six.

As Paddy and Mick start loading the plane for the return trip, the pilot says “The plane can only take four of those.”

The two lads object strongly. “Last year we shot six, and the pilot let us put them all on board; he had the same plane as yours.”

Reluctantly, the pilot gives in and all six are loaded. However, even with full power, the little plane can’t handle the load and down it goes and crashes in the middle of nowhere.

A few moments later, climbing out of the wreckage, Paddy asks Mick, “Any idea where we are?”

“I think we’re pretty close to where we crashed last year.” says Mick.

 

Have a great day

 

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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