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Morning sports fans,

We are back…seems not that long ago that Macquarie wanted to buy QAN for $5.40…boom days…indeed we seem to revisiting those days with news his morning that the Millionaires Factory is buying 90 planes for $4bn and raising $500m to pay for them in a placement and SPP…So instead of buying the airline this time ,they are just buying a fleet of airplanes…sign of the times..especially when $600 gets you $4bn worth of exposure to a global growth story…

Anyway back on the ground the RBA decided to stay its hand ..today we get to see what the GDP number is so maybe they were right and maybe they were wrong ..time will tell but it seems that as the economy sinks ever further into a non-existent non-mining boom we will see rates continue to fall…and as rates fall the necessity for investors to get that yield increases so anything with a pulse that has a sustainable high ish yield will be sought…of course everyone will be trying to time their exit from the overheated banking sector but if banks are AAA rated corporate bonds that should yield 4.5% fully franked ,what share prices do you get…assuming a small rise in divs..

ANZ $40

CBA $92.35

NAB $40

WBC $41

So I guess what you pay for the banks depends on your yield criteria….but could be more upside…my old motto of “Buy the Banks Die with the Banks!!” Still holds…

Disappointed that we didn’t get to 6000 yesterday but Uncle Fester upset the party…still possible but will need a fresh impetus as rates alone won’t do it…expect a 20 down day today as the rate excitement disappates and reality comes back in with Ex Divs taking some points off…think 5900 should hold us though…

Idea of the Day-Remain a fan of WOW!!

As exit stage left the results season and welcome stage right the Ex Div season the impetus to get set with temper…however the themes of Finance,Property and exposure to US dollar earnings will continue..any stocks that have exposure to the property bubble will be attractive…der!!LLC springs to mind…

 

I still believe that WOW is worth a look…if they could only find a has been old band that has big hands and a catchy tune they would be sorted…that’s all it takes..one good ad campaign…but around 29 bucks they are worth accumulating…Masters is becoming less of a problem as the housing boom rolls on and a new management team will kick some butt…4.7% fully franked yield in a domestically focussed biz in a staple environment  with turn around capability…

 

Things to make me go mmmmm!!!

Bill Shorten is that really the best the Labour Party have got…like being mauled by a woolly sheep…

bill-shorten elmer

Interesting to see that the Treasurer has clamped down on some high profile property purchases with news that a Chinese businessman is being forced to sell his newly acquired $39m home as he hid the purchase from the FIRB by using a Aussie Shelf company…Real Estate agents are having a ball..now get to sell the home again..I have put in a low ball bid but no answer yet…he has 90 days or it just repossessed…..should send a few shock waves through China!!!

Heard it all now..The Government wants to put a super profits tax (mining tax) on Unis that put their fees up too much…so why allow them to put up their fees in the first place..shouldnt we be encouraging our kids to go to Uni rather than discourage them…higher education is the best investment in the future…to quote Whitney…well actually the writers Michael Masser and Linda Creed…

“I believe the children are our future

Teach them well and let them lead the way

Show them all the beauty they possess inside

Give them a sense of pride to make it easier

Let the children’s laughter remind us how we used to be”

whitney

Forbes identified a record 1,826 billionaires worth a combined $7.05 trillion.

iiNet, the nation’s No 3 internet provider, has been hit with a fine of more than $200,000 for failing to adequately advertise the fine print on a range of its broadband plans…..looking forward to the Metadata tax…

This is why we look so attractive to overseas punters!!!U.S. stocks currently offer some of the lowest dividend yields to compensate investors for the higher valuations (see chart). The current estimated 1.87% annual dividend yield for the S&P 500 puts it far below the annual dividend yields of Australia, New Zealand, Finland and Norway.

CAPE Graph 1

http://www.zerohedge.com

And the Ukraine has put interest rates up to 30% to stop the run on the currency and run away inflation of 26%

Ford US light vehicle sales fell 2% against estimates at +5.8%, G M February US sales rose 4.2% against estimates at +5.8% and Honda February car sales rose 5% against forecasts at +11%….hardly surprising really given the recent weather in the US!!!Not much incentive to buy a truck if there are 6 foot snow drifts!!

Barclays Bank pre-tax profit rose 12% to $8.46 billion and the bank set aside more than $1.2 billion for currency probe issues.

Today we get the local GDP  and from China, the HSBC China Composite PMI and the HSBC China services PMI, both scheduled for release at 12.45pm Sydney.

Tomorrow apparently we get the long awaited Inter-Generational Report…hope it goes down better with Abbutt than the Human Rights Commission one!

Jamie still is having problems with Macau as figures released late on Tuesday night showing gaming revenue in the city state almost halved in February.

The data showed that gaming revenue fell for the ninth straight month in Macau, with the total casino take down 48.6 per cent in February to 19.5 billion patacas ($3.1 billion). It is the biggest monthly fall since the casino sector was liberalised in 2004.

Ex Divs today… Rio Tinto, ASX, QBE, Beach Energy, Pact Group, SAI Global, Nib holdings, Independence Group.

Who is doing well in Zombieland…and the loser is the French!!!PMI’s of some of the Euro areas…

french cghart

And finally…..with Paul Kellys’ song in mind Dumb Things

dumb things
“I was at the airport, checking in at the gate when an airport employee asked,

‘Has anyone put anything in your baggage without your knowledge?”

To which I replied, “If it was without my knowledge, how would I know?” He smiled knowingly and nodded. “That’s why we ask.”

Melbourne Airport!

“When my husband and I arrived at a car dealer to pick up our car, we were told the keys had been locked in it. We went to the service department and found a mechanic working feverishly to unlock the driver’s side door. As I watched from the passenger side, I instinctively tried the door handle and discovered that it was unlocked. ‘Hey,’ I announced to the technician, ‘it’s open !’ His reply, ‘I know – I already done that side.’

Happened at the FORD dealership in Dubbo!

Have a great Wednesday

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