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Morning sports fans,

 

Mixed night from Overseas with good US corporate numbers taking centre stage. IMF tried to ruin the party and downgrade world growth based on weather related issues especially in the US..with Climate Change this will become more and more an issue..

 

I have long argued on the Telly with a  smart guy from HSBC ,much smarter than I am, that the RBA is now largely irrelevant…can’t even talk down the Aussie dollar properly and yesterday we saw a bunch of banks cut their five year mortgage rate to sub 5%!!4.99!!!!Its cut throat out there..so why do we need Glenn and his merry men…world has moved on a bit..still he gets paid a lot of money …

 

Expect another positive day with no reason to sell and buyers/punters embracing risk again..although BHP losing some momentum will hurt a little..

 

Option expiry day today too…

 

 

Idea of the Day

 

The speccy end of the market is on fire…yesterday saw LYC hit 20..now for those of you paying attention I was banging on about this one at around 12 cents as a great recovery story..well here they are up to 20…don’t say I don’t try!!

 

I would also suggest that investors have a look at the Future Generation Fund I talked about a day or so ago as it’s a great way to get exposure to some brilliant fund managers for no fee and money going to charity too…happy to send prospectus and hoping to secure a priority allocation to this baby..

 

I thought punters would like a few suggestions on stocks to look at …maybe, maybe not..anyway ..here are a few to keep an eye on

 

CZI-Bought BHP Nickel Project

AOH-Loads of cash and a QLD Cu/Ag project

POS- acquired the Black Swan nickel project in Western Australia, transforming the company into a near-term producer

IBG-Zinc in Greenland..everyone loves Zinc

BSR -Gold in Senegal.Low cost and high grade

 

Anyway you get the idea…

 

 

Things that make me go mmmm!!

 

BHP announced good numbers yesterday and all eyes are now on whether or not they are going to announce some sort of capital management initative…looks likely…at an investment seminar the other night I put our Iron Ore analyst on the spot in front of 200 people as to where he saw the price going..as he pointed out BHP/RIO and Vale controls nearly 80% of the market so the price will go pretty much where they want it to go!!!He suggested that if it went too low then FMG would be in trouble and thus be forced to sell infrastructure allowing juniors in and too high and they would pay back debt too quick and get too big for their boots…so they were trying to achieve the goldilocks price..not too hot..not too cold..and under $100 it gets all those pesky high cost Chinese producers out…so maybe they are happy here..drive down the costs ,keep pumping out the volume and realing in the big bucks..makes some sense!!

 

Read today that Sydney’s median house price has smashed through the $800,000 barrier to reach an all-time high of $811,837.Now bear this in mind a house I sold 11 years ago just sold for 150,000 less than I sold it for!!!So either I am a genius (please tell my wife I am) or the rises are not uniform but in pockets..trophy houses and overseas investors ,SMSF etc driving Inner City and UNI/School centric areas…

 

Now the US earnings season has been quite strong..Facebook for one last night but the market has really struggled to kick on …why is that..estimates are being beaten by 76% of the reporters but only managing to push a tad higher…maybe things have got ahead of themselves…lots of optimism priced in..

 

There has been a lot of stuff in the SMH about a stock called SLX..apparently it could be a huge buy..wrong wrong wrong..will get whacked today as their partner GE pretty much mothballs the project due to adverse market conditions..hope no one read the article from Not So Intelligent Investor.

 

Award for worse gold company goes to NCM…again… Newcrest Mining is set to wear another round of massive asset impairments, with the gold miner today warning it could be forced to write down the value of its assets by as much as $2.5 billion.

 

Pro-Russian criminals shot down another two planes yesterday!!!You think they would take things easy just at the moment!!

 

Commonwealth Games have started in Glasgow…

scots

 

Shut up cynics…Faceplant has soared after hours to an all time high after revenue numbers blasted the lights out…up 61 percent in the second quarter, fueled by mobile advertising. Sales rose to $2.91 billion for the period from $1.81 billion a year earlier, topping the average analyst estimate of $2.81 billion LIKE

 

And finally….thanks to all of you who have sponsored my city to surf expedition for the Starlight Foundation…new pair of trainers arrived in the post last night…how does this work…the company posted them from their warehouse in Sri Lanka and the shoes were made in Vietnam!!Marketed by an Australian company for a company founded by a Brit and based in Boston..gotta love Globalisation!!

 

Ever since I was a child, I’ve always had a fear of someone under my bed at night.  So, I went to a shrink and told him “I’ve got a problem; every time I go to bed I think there’s somebody under it.  I’m scared and I think I’m going crazy.”

“Just put yourself in my hands for one year,” said the shrink.  “Come talk to me three times a week, and we should be able to get rid of those fears.”

“How much do you charge?”

“Eighty dollars per visit,” replied the doctor.

“I’ll sleep on it,” I said.

Six months later, the doctor met me on the street.  “Why didn’t you come to see me about those fears you were having?” he asked.

“Well, eighty bucks a visit three times a week for a year is $12,480.00.

A bartender cured me for $10.00.  I was so happy to have saved all that

money that I went and bought me a new car.”

“Is that so,” he said with a bit of an attitude, “and how, may I ask, did a bartender cure you?”

“He told me to cut the legs off the bed.  Ain’t nobody under there now.”

 

Have a great Thursday…if you feel generous for Starlight,here’s the link to sponsor me…got an email from City to Surf people saying now I should be tapering my training..tapering?..I am just starting my training!! https://city2surf2014.everydayhero.com/au/henry-2

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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