Australian Shares

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ASX Shares Daily – 1st June

By Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Another interesting session on local markets as we away from month end to a printing avalanche of PMI’s. The ASX200 eventually recovered at the end of the session today, but it still finished in the red, down

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MacroBusiness Morning – 1st June

by Chris Becker and Greg McKenna Macro Wrap We saw a bit of position squaring yesterday for month end after assets like the Aussie dollar made a fresh low for the year before rallying. Likewise in US equities the early weakness gave way to a better performance but by the end of play the pressure

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Suncorp out of the shade

Suncorp Metway has given analysts an update, which is always good for boosting their flagging spirits. The company  is Australia´s largest domestic general insurer and has the somewhat troubled  regional banking franchise in Queensland. Its capital position is reasonable, but general insurance is a high-risk business and likely to get riskier. The update was the

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ASX Shares Daily – 30th May

By Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Apologies for the late summary, its a busy week for me, but here we go: After jumping out the gates yesterday on false Chinese stimulus rumors, the ASX200 today finished almost down 0.5% (down over 1% intraday)

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Can CBA innovate its way clear of the bubble?

The performance of bank stocks will be increasingly dependent on being well managed businesses rather than exploiters of asset bubbles. Even if there isn’t a major correction in the property market — no sure thing — the era of rapid house price growth is over. Australian banks still dominate the market, a nice little government backed oligopoly, but they

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ASX Shares Daily – 29th May

By Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Asia market are a-booming, all because – contrary to the very poor Cupboard reporting – of speculation about a possible China stimulus. There is not a single fact behind this story, its’ all because of a

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Caught in a Peet bog

The residential property market is far from attractive from investors, but Deutsche has an interesting comment on Peet, a stock that has been hammered in the way that one would have expected the entire sector to have been. Since the middle of 2010 it has underperformed the All Ords by less than half. This year

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The joys of scrap

Global recycling company Sims Metal has announced its net profit after tax for this financial year is expected to fall more 10-15% on the previous year. Deutsche takes the announcement to mean earnings in FY12 are expected to be at least 30% below FY11. Merrill Lynchhas downgraded the stock to underperform, yet more gloom for the market: Given

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Trading Week

So where have the markets gone this week? Past the daily noise and headlines, this weekly chart heavy post will examine the major markets (debt, commodities and currencies) with the Australian investor in mind. It’s been awhile since my last Trading Week, with a holiday in between and Deus Forex Machina penning last week’s column

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ASX Shares Daily – May 25 – Time to panic?

By Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Before you get excited about the headline, please remember its Towel Day, and the first thing to remember, in capitals of course is, DONT PANIC The ASX200 remains stuck and does not want to breakfree into the

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ASX Shares Daily – May 24

By Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. The ASX200 wanted to breakfree with jumping unicorns, but the snipers were out on the grassy knolls, the market falling 11 points or 0.3% to 4055, remaining just above short term support above 4050 points on the daily

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East coast energy shock

One of the slow time bombs in the Australian market is the probability of much higher gas prices on the east coast of Australia because of the effect of LNG exports. It has already happened on the west coast. Manufacturers have to pay prices for gas that are four to five times the artificially low

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Harvesting Graincorp

Finding effective investments in the agriculture sector remains as problematic as ever. Graincorp has reported its first half results, lifting its net profit after tax guidance range by $20m to $185-205m, although $17m is in significant items. The first half generates most of the earnings, so there is likely to be a good financial year.

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ASX Shares Daily – May 22

By Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. The ASX200 continued its two day snapback from the awesome falls of the previous two weeks, where the market plunged just over 9%, nearly wiping out all the gains for the calendar year. Indeed, the index

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Find yield in economic rents

It is pretty quiet in the analyst community, just as there is a somewhat gloomy mood in the market. There seems every reason to adopt a defensive approach, concentrating on yield. The after tax bank yields look reasonable because of the franking, but that comes with the risks to the residential property market and whole sale funding exposures, about which

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US housing weighs on James Hardie

James Hardie reported an operating net profit after tax of $140 million, which was towards the top end of guidance. Of course that excludes the asbestos issues, which deservedly hang over the stock like the Grim Reaper. There are also questions about asset impairments, ASIC expenses and tax adjustments. The company is paying a final dividend of 38¢ per share

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ASX Shares Daily – May 17th

By Greg McKenna in for Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. What is it with the ASX 200? After days and days of losses and with Asian markets and US equity futures in their night trade ralling today the poor old Australian market found

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Is it the real thing?

Coca Cola Amatil is a discretionary consumer products play, which, given the pessimism of Australian consumers, is to be considered with caution. The company has some scale advantages from its extensive distribution network — it is yet another oligopoly play (which means as much an economy play as a stock value play). The company can introduce new products cheaply,

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BHP’s bitter pill

Cross posted from Henry Thornton: In early March of this year, Henry was sufficiently concerned to spend several hours quizzing the man who manages his equity portfolios. Key assumptions were as follows.  The US economy is recovering but not yet strongly; Europe is mired in recession and could yet trigger a major global setback; China

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ASX Shares Daily – May 16th

By Greg McKenna in for Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Crash Bang Wallop – a very ugly day in Asia today as the appetite for risk recedes across the globe and investors and traders find the path of least resistance to the down

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ASX Shares Daily – Tuesday May 15th

By Greg McKenna in for Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. The market in our time zone was under a little pressure in trade today but nothing terrible in the context of what happened in Europe last night. The Shanghai B shares fell 0.73%

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In the poo

Incitect Pivot is a diversified primary sector play, it gives exposure to agribusiness and resource activity, albeit with the high levels of volatility that implies. The company has some pricing power from its dominant fertiliser market share in the eastern states, but in the US explosives market it is more of a price taker. The volatility of the stock was

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ASX shares daily

By David Llewellyn-Smith in for Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Asian markets were all marginally up today. The local market, the S&P/ASX200, bumped around all day before finishing up 7 points to 4292. Telcos led the charge up almost 1% with financials up almost a

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Finding yield

The era of the stock market bubbles is definitely looking over. After Western central banks spent most of the last decade trying to avoid a Japan-style asset deflation and economic shrinking, that is pretty much what has happened, although it is arguably far less extreme and will probably not go on as long. Western stock markets will not be

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Don’t bet on a European resolution

By David Llewellyn-Smith Over the past few weeks, as equity markets around the world have awoken to the renewed dangers of Greece by falling 4% to 5%, there’s been a growing chorus among the usual bullish suspects to buy the dip. Over the weekend, this line of thinking received some heavy duty support in the

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ASX Shares Daily

by Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Asian markets are having a mixed day, reflecting the mixed local and regional data. The local market, the S&P/ASX200, surged in the afternoon finishing just below 4300 points, or up 0.48% to 4295 points. The ASX200 is still

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The search for yield

The problem that has beset investors in most developed countries in the wake of the GFC is where to get decent returns. Especially if you are worrying, to use Deus Forex Machina’s distinction, about getting “a return OF your money as opposed to ON your money“. It has been less of a difficulty in Australia because interest rates have stayed

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ASX Shares Daily – Budget greenlight goes red

by Chris Becker Remember to read “Trading Week“, published Saturday morning, to put these events and ideas in context. Asian markets are not having a good day today, and alarmingly, after the golden austerity Budget handed down last night, the S&P/ASX200 still fell almost 1% or 39 points to 4275 points. This downtrend – coming after

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Gas gets expensive

The news that BG Group had experienced a cost over run of 36% for its 2014 QCLNG project in Queensland has Macquarie tracking the consequences for listed Australian stocks. BG stressed that much of the cost over run was country specific influences rather than sector specific conditions. Macquarie concludes that this is likely to influence Santos and Origin