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Morning sports fans,

Results season is coming thick and fast…the first ones are usually the best ones and we have had some good and some not so good…the good get rewarded and the bad go to hell and roast in investment purgatory forever…yesterday we saw a couple of biggies disappoint..IAG,SUN,CRZ and others..today we have had super profits from AMP, lacklustre from FXJ and IIN .Seems that Fairfax are still struggling with the print media…not sure why they bother…I am a subscriber to the $25 a month package…I pay the same whether I get the weekend real papers or not…so I do and every weekend someone kindly chucks a rolled up paper wrapped in gladwrap on my lawn which I then chuck in the bin…Maybe they should have a look at this.

Overseas we saw Greece completely ignored again and the markets roll on…no one seems to care..at least not at the moment..the market looks set to hit 6000 with ease(as suggested some time ago)…the rocket that has turboed the market yesterday, was the knock out bid from Japan Post…was doing Sky TV and watched the press conference…on one side was the Japanese CEO with his interpreter looking like a robot ,whilst on the other side was the board and management that had the biggest smiles…chairman was cracking jokes and seemed pretty pleased with himself…I suspect they were all off to a VERY big lunch and were not coming back..extraordinary price paid for Toll…50% above the last trade…I was asked a really good question by one viewer..he asked was I surprised given that the Japanese approached Toll in January that this was not revealed to the market…good question I thought…companies do have a history of keeping shareholders in the dark..in this case they were handsomely rewarded..I also added that I was amazed that the news did not leak so full marks for both parties for keeping Mum…so it’s probably game on ….overseas investors will be ruling their slide rules over a number of global businesses that they can buy in cheap Kanagroo Dollars…BXB springs to mind as does AMC…

Who remembers these?

slide

foot

Idea of the Day

The foreign money is coming…Toll was a wakeup call to corporate Australia that Johnny Foreigner likes what he sees down here…cheap globally competitive companies priced in lovely Aussie Dollars..as a result the best defence is by keeping shareholders happy…keeping shareholders happy means buy backs, capital returns, big dividends and muffins at the AGM…and all this means that ‘shortermism’ will be rewarded..we all have it these days..smartphones ensure that ..our attention spans are shorter than watching Bill Shorten give a lecture…

elmer bill-shorten

Anyone see the similarity!!!

Things to make me go mmmmm!!!

More confusing signals from the Fed last night…suspect that free money will rain down for longer as the cold snap takes its toll….and they chicken out of raising rates in case it upsets the global recovery and their Wall Street friends!!!

The UK FTSE is only 32 points off its all-time high…I remember when it first stared at 1000!!!Showing my age…

Delightful evening talking all things mining last night, with a massively generous host Julian Malnic, chairman of the mining Club. Lovely bloke…

From the Fed…Irrational exuberance….Mark III…

They noted “valuation pressures in some asset markets. Such pressures were most notable in corporate debt markets, despite some easing in recent months. In addition, valuation pressures appear to be building in the CRE sector, as indicated by rising prices and the easing in lending standards on CRE loans.”

And this gem from the Fed…. “Many participants indicated that their assessment of the balance of risks associated with the timing of the beginning of policy normalisation had inclined them toward keeping the federal funds rate at its effective lower bound for a longer time.”….Sir Humphrey would be proud indeed…

Beacon Lighting has continued its stellar first year on the share market, reporting a 35.3 per cent rise in net profit to post a record result of $9.1 million.

The company reported earnings before interest, tax, depreciation and amortisation of $14.5 million in the six months to December 28, up 31.4 per cent on the previous corresponding period.

Russia has been selling its US paper at an alarming rate of nots…a record 20% of their holdings in Treasurys went out the window leaving them with levels not seen since 2008.

Baltic Dry continues to plunge to record levels..not an encouraging sign for world trade…

Oil got hit again…still believe that we have seen the lows and now the bouncing around begins…continuing issues in the Middle East especially now that Libya has become the new flashpoint for Islamic extremists..Egypt is getting tough in their neighbours…

Greek government source told Sky News:

“Germany has been overtaken by arrogance.

“It’s like being back in the 1940s, being asked to surrender.”

The Greeks run out of money in a week!!Chicken anyone!!

And finally…..

Ron Chestna a 89 year old man was stopped by police at 2am and asked where he was going at that time of night.

 

Ron Replied…I am on my way to a lecture about alcohol abuse and the effects it has on the body as well as smoking and staying out late.

 

The policeman replied who’s giving that at this time of night..

 

Ron replied…..My wife!!!

 

Have a great Thursday

Clarence

XXXX

Get a Global take on things at www.ntmarkets.com

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