Australian Shares

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Trading Day: 23rd June

The S&P/ASX 200 has fallen over 20 points today, but has steadied after midday, now at 4512 points, down 0.44%, on the back of reduced GDP growth from the US. Asian markets are all down on the news, with the Nikkei down 0.37 percent to 9594 points, the Hang Seng also down 0.7% and Singapore

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Equity Spotlight: Cochlear

This week’s Spotlight will be on a company I believe is probably the best listed stock on the ASX – Cochlear Ltd (COH). Not only is it a great performer, with sound management and excellent returns for shareholders, it is an innovative company that should be a template for how our economy should present itself

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Trading Day: 22nd June

The S&P/ASX 200 jumped over 1% on the open again from positive leads from Greece, but has steadied after midday, now at 4540 points, up 32 points or 0.71% Asian markets have also responded in kind, with the Nikkei up over 1.3 percent to 9582 points, the Hang Seng also up 0.7% and Singapore lagging

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The great equities mystery

Brokers like to either sit on the fence or look like gurus. Let’s have a look at two examples of both. Citi is opintnig out that over the last two months, the Australian market has corrected a little more than the US and other major markets, partly a result of commodity prices pulling back and

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Update: Fosters should sell, maybe

News is out that Fosters Group (FGL) just knocked back a buy-out bid by SABMiller worth $9.5billion, claiming it significantly undervalues the company.  That’s a big call by the beer barons; the bid represented a per-share value of $4.90 and Fosters is trading around $4.50.  Let’s see if it stacks up based on the fundamentals. Fosters’ fundamentals

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Trading Day: 21st June

The S&P/ASX 200 jumped over 1% on the open from positive leads from US markets, but has stalled after midday, now at 4490 points, up 38 or 0.9%. Asian markets are up, with the Nikkei up nearly 1 percent to 9436 points (just above its medium term support), the Hang Seng also up 0.47% and

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Catching a falling knife

Those who keep an eye on the Australian share market could not have helped but have noticed its direction of late – down.  The ASX200 has lost 10% since April, as shown in the graph below. No doubt a number of traders have profited from the correction, with those possessing the best line drawing skills

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Trading Day: 20th June

The S&P/ASX 200 rebounded on the open from positive leads from “rally” in US and EU markets on Friday, but has since gone slightly in the red, or 2.5 points down, back below 4500 points just after midday. Asian markets are actually up, with the Nikkei up over half a percent to 9406 points (just

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The neglected art of selling

By low, sell high!  That oft-used 80s catch cry is what all investors should aim to do.  In most cases the first part – buy low – can often be the easiest part to do.  I could have picked 10 random stocks from the ASX200 in March 2009 and I’d be on a winner because

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Equity Spotlight: JB Hi-Fi

Following on from Q Continuum’s post on investing during sideways markets, today we shine the light on Australia’s best retail stock, JB Hi-Fi (JBH). Interestingly, this position is not shared with the current marketplace, as JBH remains the No.1 stock to sell short (i.e to profit on a fall in price), with over 14% of

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Trading Day: Friday 17th June

The S&P/ASX 200 rebounded on the open from positive leads from the US overnight, but has since reversed back below 4500 points just after midday. The index is up 7 points or 0.17% to 4486. Asian markets are similarly effected, with the Nikkei down slightly, the Hang Seng down 0.18% and Singapore 0.14%. Other risk

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Insurance insurance

Insurance stocks have been taking a bit of hammering for obvious reasons. QBE issued a couple of days ago an after market profit warning and is trading well below where it was a year ago. IAG has performed a little better, but not well. Southern Cross has a buy on Suncorp, arguing that it is

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Trading Day: game over

The S&P/ASX 200 opened down sharply reacting in line with overnight markets which were all down 1 to 1.5%, reversing yesterday’s gains. At just after midday, the index has lost just over 60 points or 1.31% down to 4510. Asian markets are similarly effected, with the Nikkei down 1.1%, the Hang Seng down 1.4% and

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Trading Day: jitters continue

The S&P/ASX 200 opened slightly down, reacting strangely to overnight markets which were all up 1 to 1.5%, and at mid-afternoon has lost just over 24 points or 0.5% to 4561 probably in response to Glenn Stevens inflation rhetoric about future rate rises. Asian markets are mixed, with the Nikkei down 0.13%, the Hang Seng

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Marginal bet

An intriguing comparison between economic growth potential and valuation of stocks comes from Deutsche Bank this morning. When looking to invest globally, it is a good idea to track economic growth potential, right? And that means looking hard at emerging markets, doesn’t it? Well, not necessarily. The overall growth of the economy does not necessarily

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Investing in a sideways market

There is always media chatter about what markets are going to do in the short to medium term.  It’s most intense at the end of each year, as the financial pundits stare into their crystal balls and attempt to divine the direction of the All Ords, FTSE, Nasdaq, S&P 500, Nikkei and every other major

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Trading Day: steady?

The S&P/ASX 200 opened 30+ points sharply down, reacting to overnight markets (it was closed Monday) but then reversed and at midday is up nearly 9 points or 0.19% to 4573 points. Asian markets are generally up, with the Nikkei up 0.16%, the Hang Seng steady and Singapore also barely up. Other risk assets are

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With a whimper

With bearish sentiment growing in the stock market, shifting to an intelligent defensive position is paramount in order to prepare for the next uptick. In many respects, equities should be a good buy: earnings multiples are low, gearing is low, interest rates are not especially high. The market is pricing in some significant weakness, and,

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Australian Market Weekly Wrap

The S&P/ASX200 Index closed the week slightly lower at 4562 points, a 0.4% fall, extending a 400 point or 8.2% loss from the mid-April high of 4971. This move is identical to the February/March Japanese earthquake correction signaling very high volatility in the local bourse. SPI Futures put the opening price for the market on

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Bull, muddle, bear?

The problem with finance and economic analysis is that it mostly relies on history. Their bias is the assumption that nothing is new; that everything will or should, return to a norm. They are ahistorical, in other words. So let’s try something a bit different. Scenarios of the future. We will begin with a report

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Trading Day: a reversal in risk?

The S&P/ASX 200 opened sharply higher, reacting to the first up day in six on overseas equity markets, and at midday is up 15 points or 0.34% to 4564 points. Asian markets are generally up, with the Nikkei up over 1.2%, the Hang Seng continuining its decline, dropping 0.5% and Singapore and NZ steady. Other

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Equities spotlight: Bluescope Steel

Following on from this week’s article about the affects of a carbon tax on equities, today we shine the spotlight on Bluescope Steel. The Business Bluescope (BSL) is one of Australia’s leading suppliers of metallic coated and steel building products and is the owner of the Port Kembla steelworks.  BSL is also one the world’s largest

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Macquarie capitulation?

Macquarie Group is trading at less than a third of its peak and, to make matters worse, Citigroup has issued a sell recommendation. Morningstar has, by contrast. issued a buy, but we will come to that later. At first glance the fundamentals look OK. The forward dividend (unfranked) is 6%, the forward earnings multiple is

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Trading Day: no reaction to jobs

The S&P/ASX 200 opened higher, shrugging off bad job data, and at midday is up 10 points or 0.2% to 4546 points. The correction has now wiped off just over 9% of price in the ASX200, just below the conventional 10% level of a complete correction. Asian markets are mixed, with the Nikkei down over

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Trading Day: support broken

The S&P/ASX 200 dropped on the open, and at midday is down over 53 points or 1.16% to 4520 points. The correction has now wiped off just over 9% of price in the ASX200, just below the conventional 10% level of a complete correction. Asian markets are all down, with the Nikkei down over 0.4%,

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The Metcash barometer

Given Metcash is the small operator within a large duopoly structure, and therefore relies in some measure upon system growth, we can take brokers’ attitudes as a good weather vane for sentiment towards the non-mining part of the economy. And it is pretty bearish. Southern Cross is claiming that the Eastern seaboard is already in

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Carbon taxing equities

As a value investor and climate change agnostic, I have to admit I’ve been watching the carbon tax/ETS debate with a sort of detached interest.  Given the Federal government’s unparalleled skill at botching both policy PR and implementation, I had assumed that the ETS would go the way of FuelWatch, Pinkbats and Kevin Rudd’s stiff

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Trading Day: rates pause

The S&P/ASX 200 slipped on the open, down over 30 points or over 0.6% before this afternoon’s rate decision by the RBA. It is now at 4541 points and rising as a result. Asian markets are mixed with Japanese markets rallying, with the Nikkei up over 0.5%, but the Hang Seng dropping 0.7% and Singapore

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Shoppers warming up

The medium term performance of the share market (ex-resources) depends heavily on household’s willingness to spend. The savings rate is rising as “disleveraging” occurs, but that is in the past. What maters for stocks is what will happen in the future and Royal Bank of Scotland is detecting some positive signs. Unlike America, where high

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Trading Day: Monday 6th June

The S&P/ASX 200 continues to slip, down 15 points to 4567, after following Wall Street’s losses over the weekend. Asian markets are down even furthera, with the Nikkei down 0.94%, the Hang Seng down 1.31% and Singapore down 0.42%. Other risk assets are steady and even rising, with the AUD at 1.0744 against the USD,