Thursday 5th July-God exists but market unimpressed..

Morning all,


News yesterday of the discovery of the Higgs Bosun particle was overshadowed by more fallout from the LIEBOR scandal in London…things were quiet overnight with the US closed for burgers and fireworks..the SPI was flat and Gold and Oil fell a little..as were base metals so maybe some backing and filling today.


Yesterday’s rally was nice to see but volume of $3.1bn was pathetic again..maybe we just have to get used to that in the brave new world! Concentrate on selling the big issues..I sold three yesterday in Pitt Street! Expect a sideways day today as we await the return of Wall Street.


Once again we saw some disappointing economic results from Zombieland with German services falling to under 50 which indicates a contraction and Chinese services also expanded at their slowest for 10 months.So the worse the numbers the more the Central banks will have to pump the economy..that’s the theory but let’s hope they have the will to do it.


Down to stocks-yesterday I sent round a note to clients on high yielders ..if you are interested I can send it again..otherwise as I wrote yesterday it may be time for poor old BHP to gather some friends..the stock has been trashed due to concerns that the Klop bought the US Gas business at completely the wrong price and would have to make write downs..well he did pay too much but I think it may be time to look at them as a recovery story as the oil price pushes back up..Brent back over 100 bucks..expect to see BHP closer to 35 in the coming week or so..


Things to make me go all Higgs Bosun.


1.Man Utd due to list…reminds me of the Myers float..looks like you get to have lunch with Jen Hawkins or Wayne Rooney but really you end up sleeping with a bloke called Malcolm.

2.Andy Murray wins to go through to semis…come on! Bringing out the POM in me. Even if he is Scottish!

3.AGO officially says that it won’t pay any Mining Tax casting some doubts on Government forecasts..suspect there will be very few that will pay any of the tax..these guys outmanoeuvred Julia big time…

4.ECB meeting tonight and hopes for an easing. Brazil looking to cut its rates..they are at a record low of 8.5%..traders expecting another 50bps off next week to help economy.

5.Big news in Fairfax press yesterday that they are moving from Microsoft to Google Apps..why was this news..not sure but shows the rise of the machine…Google and Apple continue to rub Microsofts nose in it.

6.James Packer looking to get more Echo..this one will be the subject of a takeover battle at some stage..there will be stories..maybe that mob in Newcastle could lob in a bid for this as they weren’t successful with DJ’s

7.IMF calls on the US to show fiscal restraint for next ten years and cuts in growth forecast..Debt to GDP now at 107%..which is not good..ask Greece!

8.DJs bid just keeps getting weirder and weirder with a small broker,ITG, in Melbourne responsible for most of the buying before the takeover announcement.

9.The Strange thing about the LIEBOR rate is the way it is set ..who would have thought they worked it out on an honour system..my word is my LIEBOR..clearly not!

10. US payrolls on Friday…

On the radio today..talking markets..Newcastle radio that is..Sky TV next week…

And finally….Two hunters are out in the woods when one of them collapses. He doesn’t seem to be breathing and his eyes are glazed. The other man pulls out his cell phone and calls emergency services. He gasps to the operator, “My friend is dead! What can I do?” The operator in a calm, soothing voice replies, “Take it easy. I can help. First, let’s make sure he’s dead.” There is a silence, then a shot is heard.
Back on the phone, the hunter says, “OK, now what?”

Clarence


XXX

Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Tuesday 3rd July-There's no other board like David Jones

Morning,

The farce that is DJS bid was revealed in all its glory yesterday..the company failed spectacularly to do any due diligence on the bidder..I mean even if you ‘Google earthed’ the address it would have started to ring alarm bells..the whole board should be sacked for incompetence..joke and makes a complete mockery of ASX and yet another reason why investors are staying away from this market in droves..In the US volatility is urging whilst volumes are the lowest in a decade....and most of that is computers!.

Here the computers are taking over trading and we are following the US model..I blame NASA...if these guys still built rockets and shuttles ,all the smart people would be doing something useful like putting a man on the moon,any man (although I can suggest a few), not rigging financial markets..the LIEBORGATE scandal in the UK is just another example of how the Masters of the Universe  are operating...the witch hunt will now be in full swing in the UK and more heads will be claimed..last night the Chairman of the World’s 4^th biggest bank resigned due to the scandal and expect more...This is going to be a big story...so much is priced off the LIEBOR rate it’s not funny and if you can fiddle this what else can be fiddled..even the Australian Bureau Of Statistics has now said that the unemployment rate is wrong.

This latest scandal from the UK comes after companies bought AAA ratings from the agencies for their dodgy CDS products...I mean why are we surprised about all this...they all have history..Morgan Stanley look to have been caught out on this in a recent revelation.

So what’s in store for our market..suspect a little buying will continue to creep up with commodities up a smidge and other equity markets slightly better..except US that is. Also Aussie dollar doing nicely nicely at nearly two month highs..I have suggested selling into rallies..still believe that is the case..range is 4000 to 4400 until otherwise notified...may be a while!

I talked about SBM yesterday and they promptly dropped 15%!...now may be the time to look at these babies ...I believe that around 1.50 you will be rewarded in time...

Things to make me go all Q and A!

1.Simon Sheikh fails to Get Up instead he falls down..thankfully he is ok..more than can be said for Sophie Mirabella’s credibility and reputation..Gone in 60 Seconds!

2.Another sad day with an Australia Special Forces soldier killed...our hearts are with the family.

3.US debt now $15 trillion dollars and 101.5% of GDP!!!If this goes on much longer pretty soon these guys are going to have a problem!!Biggest since WWII

Thanks to zerohedge.com for this insight..

4.NSW Government now looking at cutting 10,000 jobs from the Public service...sure they will all get reemployed in mining or at least as consultants to the Government doing the same job for more money but off the Govs books!

5.Microsoft hit with a $6.2bn writedown!! Slump in the value of its online services division...surprised ..not really...Google and Apple killing all before them!

6.Weak US manufacturing sector contracting in June for the first time since 2009.

7.LLC investor day looks like a prelude to a coming capital raising...

8.RBA meeting today will keep rates on hold...risk is less and economy needs to see the effect of the last RATE CUT..

9.Bob Diamond(Barclays Chief) threatens to tell all on regulators and Politicians..now that would be interesting!!

10.Craig Emmerson just embarrassing!!No more songs please on the new carbon tax...

If you are looking for an explanation of the Greek problem this is a very insightful take from John Clarke!!!Love this...John Clarke and Brian Dawes on the Greek Economy

There, I have not mentioned Zombieland once today...well nearly!!

And finally “The hardest thing in the world to understand is income taxes.” - Albert Einstein

Have a good day.

Monday 2nd July-Ole Ole Ole Ole!! And Lieborgate claims its first big victim!!

Morning all,


World markets have soared on news from the 19^th Zombie summit being slightly more decisive than the previous 18! It appears(and I mean appears) that Moaning Mertle has done an about-face…The moves were even more pronounced as end of quarter window dressing and a massive short squeeze pushed the Dow up 280…If anyone thinks that the latest moves from ‘Ze Germans’ will solve everything wrong with Zombieland, then they are sadly mistaken…however what it does show is the biggest problem is confidence..without confidence the whole financial system is a Emperor without any clothes..good to see the Greeks being the first to ask for the same deal as Spain!!Didn’t take them long did it!

The ASX 200 will blast off today…after a dramatic turnaround on Friday when news first spilled out of the Summit, we will push ahead..all risk assets rebounded with Gold and other commodities having a day in the Bollinger tent!

The question now is after the jump do you go with it or sell into it…personally I am not convinced and remain a seller of rallies..the range is 4000 -4400 on the SPI and so at 4150 (probably after today) there is maybe a little more upside than downside but I am not hoping for anything substantial or lasting until we head into the Autumn in the Northern Hemisphere…

On to stocks in our market..big resources will leap on moves on the LME and elsewhere and we may see a little more interest in the small ones with Gold stocks in demand…SBM may be worth a look after the big falls due to its merger with Allied Gold…at 1.80 I would be a buyer of this one…

Still remain a fan of BBG and expect some dodgy shelf company based in Macclesfield to send the Merchant of Bells a letter of intent to bid, on nice embossed stationary any time soon…nothing like it to flush a few players out..and so what if the company doesn’t exist just call it something Private Equity and Bob’s your father’s brother!

The next big issue that is going to hit markets s the US budget and if the two major parties can break the deadlock on funding it! That’s an issue only a month or so away! But let’s not worry about it just yet!

Things to make me go all Ole.

1.Spain win preferred debtor status..and the Euro Cup by beating Italy 4-0…been a good week for these guys!

2.DJS bid a farce..not sure why the board released the bid approach in the last days of the financial year ESPECIALLY when the letter arrived on May22nd!!!!…maybe helped rescue the share price(up 14%) but it won’t rescue their credibility…I am going to bid for BHP next week…seems easy..register a dud company and send the Board a letter…volia up they go..I am sure the bonus pool for management just went up too…the Fin Review even has a copy of the letter that EB Private Equity sent to DJS….I could just cut and paste..I mean really guys did you not do any due diligence yourselves!!!(Research piece enclosed)

3.Carbon Tax has started…the sky hasn’t fallen in yet…still find it weird that a tax designed to change our habits with energy use is then negated by giving compensation back to people …it’s like taxing Cigarettes and then giving smokers a rebate to keep them smoking!!

4.Diamonds aren’t a banks best friend…that’s two Diamonds now in troubkle..Jamie at JP Morgan and now Bob Diamond at Barclays for fixing the LIBOR rate! Chairman has now resigned and pressure will be on Bob to follow his lead..expect they will get a gig elsewhere though so don’t feel too bad for them…nice $450m fine!!Bank of England will be dragged in as well..Lieborgate!

5.Japan restarts a nuclear reactor…

6.VIX fear index drop 13.4% to 17…the World is now a safe place…SPI up 38 Gold up $45 and Oil up $7.. Spain’s 10-year yield fell 61 basis points to 6.33% …Italy’s 10-year yield fell 39 basis points to 5.81%.

7.RBS meets tomorrow but they will be on Hold especially now that all the Euro Trash have been bailed out!

8.Syria and Turkey continue to fall out.

9.Manufacturing data from China, the world’s biggest exporter, signal the government may need to add stimulus to arrest an economic slowdown that probably extended into a sixth quarter
.
10.Chinese Banks now account for a third of all World bank’s profits!! Eurozone banks accounted for 6 per cent of global profit last year, compared to 46 per cent five years ago and their 45 per cent share of global assets…that’s how much the World has changed!!!

Having watched “Too big to fail” last night I hope that it wasn’t too accurate because it certainly doesn’t show anyone in the Banking system in a good light and the consequences of that window of time will come back to haunt us.

And finally from Die Welt(German Newspaper)

When economic historians in a few years determine the turning point at which the euro zone turned into a debt community, they may refer to the last Thursday night. In those dramatic hours when Angela Merkel after massive pressure from Italian Prime Minister Mario Monti and Spanish Prime Minister Mariano Rajoy buckled – and agreed to an agreement whose scope is now very difficult to estimate.

Happy New Year!!



Clarence



XXX



Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Friday 29th June -End of Financial Year Sale

Morning,


The last day of the financial year brings a plethora of news..overnight the Italians destroyed any chance of a German bailout by beating them 2-1 in the Euro 2012 semis, and to cap it off for them both Italy and Spain emboldened by their football success appeared to withhold their approval of the new growth pact. I think last night’s dinner at the 19^th summit was looking to descend into an all in food fight.
The US markets were deeply disappointed by economic news on the jobs front and only a final hour rally on hopes of a Zombie revival helped pull thing s up a tad…still finished down 25 with the VIX hovering around 20..still quite low considering.

Yesterday STO came out with what it said was not a cost blow out but the market took it as a huge one..bringing forward $2.5bn of spending on its Gladstone LNG project sent the shares reeling and despite the company trying to spin the news,it failed…cost blow outs are now the new black..anyone who has ever had a any building work done knows that this is just fact! Think it may be too soon to buy this one but starting to look a little more attractive after a 6% fall yesterday.(Research enclosed).

Metcash was another disappointment yesterday with a profit downgrade and a fund raising of $325m at 3.50 a 6% discount..they should be back soon and will get hurt..I suspect the whole market is cum a profit downgrade or cost blowout!..they seem to be taking turns…Analysts have been too bullish and the next round of profit results will show the extent of the slowdown and the loss of confidence due to Europe and China.

For those of you that are interested in how the new computer driven market works I will tell you a little story..yesterday I had some shares to sell in something that is a little illiquid..every time I put an order into the screen to sell some, a computer program would beat me to the market and undercut my price by a cent for a tiny amount of shares..the order from the computer was fractionally faster than mine so their order went in before mine..so here you have my operator sending a message to the exchange that is read by my competitors and then an order put on in front of mine undercutting me …they must have a faster server than mine..but I call it front running and I reckon the buyer was the same man…that’s called a false and misleading market and its happening everywhere! Love the ASX!

Things to make me go mmm.

1.The Banking scandal in the UK is getting bigger and will make the phone tapping scandal look like a cake walk…Barclays took it pretty badly last night wiping nearly 16% off its hare price..fixing the market is not a good look..fine of $450m hurts too… and this scandal will like a vortex drag many more into it…how can we trust these institutions any longer?..now there’s a question.

2.Rafael Nadal was beaten by 100 seed unknown at Wimbledon..David Beckham left out of GB Olympic Soccer team..travesty!

3.Blackberry get squashed as their very survival comes under scrutiny…they won’t have a new phone for another year..I suspect they will be in even more trouble by then..cutting 5000 jobs and posting a quarterly loss 5 times bigger than projected!Stock fell 22%..gone!

4.Newscorp officially announced that they were going to split into two..now the big questions emerge as to who will run the two halves..interesting times in the Death Star…may the force be with you!

5.Obama gets his healthcare package through the Supreme court..the hope that accompanied his election a few years ago has gone and his Presidency is such a disappointment..maybe this at least will be something he can say he did!

6.Once again our glorious Politicians have failed to sort out the boats coming to this Country…how many more people will die..it’s disgusting..put away Politics and sort it..we are all fed up with you!

7.Stockbrokers had their awards last night..there will be some hangovers this morning..but at least the computers will be fine..not sure what the industry has got to celebrate but a worthy cause for Charity..well done to this that organised it in tough economic times..tip of my hat to you..no hangover here..

And finally the US/Zombie Debt crisis explained

“Heidi is the proprietor of a bar in Detroit. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar.
To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.
Heidi keeps track of the drinks consumed on a ledger (thereby granting the customers’ loans).
Word gets around about Heidi’s “drink now, pay later” marketing strategy and, as a result, increasing numbers of customers flood into Heidi’s bar. Soon she has the largest sales volume for any bar in Detroit …
By providing her customers freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages.
Consequently, Heidi’s gross sales volume increases massively.
A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi’s borrowing limit.
He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral!!!
At the bank’s corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINK BONDS.
These “securities” then are bundled and traded on international securities markets.
Naive investors don’t really understand that the securities being sold to them as “AAA Secured Bonds” really are debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.
One day, even though the bond prices still are climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar. He so informs Heidi.
Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts.
Since Heidi cannot fulfil her loan obligations, she is forced into bankruptcy. The bar closes and Heidi’s 11 employees lose their jobs.
Overnight, DRINK BOND prices drop by 90%…
The collapsed bond asset value destroys the bank’s liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.
The suppliers of Heidi’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the BOND securities.
They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds.
Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations; her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.
Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multibillion dollar no-strings attached cash infusion from the government.
The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Heidi’s bar….
Now do you understand?” Simple!

Have a great weekend and Happy New Year!!!Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Thursday 28th June..Here it comes my 19th Nervous Breakdown!

Morning all,


As we approach the 19^th Nervous Breakdown (or 19^th ‘Zombieland’ Summit) we finally had some good news from Spain as they pushed past Portugal in a penalty shoot-out. They now face Germany or Italy in the final…Spain v Germany would be a interesting showdown..much like what is happening on the Economic front..and where is France nowhere…of course nor is England but we won’t talk about that.


Last night we finally had some better economic news out of the US ,this coupled with hopes of Chinese stimulus package was enough to lift markets into the end of month close. This is not a rally to get carried away with I am afraid with the continual storm clouds over Europe and the refusal of Moaning Mertle to consider Zombie Bonds then it’s truly hard to see any sustained upside…one commentator described it as a slow motion derailment…I read last night that France is moving to increase the minimum wage and reduce the retirement age…aren’t they supposed to do the opposite…two days of nothing will ensure the Zombie’s fate is sealed..my only surprise is the citizens of these Southern States have been as well behaved as they have..



Here in the land of OZ expect more green on your screen..yippeeee…not that there will be too much business again..$3bn yesterday..even the audience numbers for CNBC are at a 7 year low..seems no one is watching anymore.SPI is up 28 points so lets get this party started…expect a solid day with the usual suspects pushing up..Mainly banks and defensives..risk is still a dirty word..
I remain a fan of BBG at these levels…for the brave but could be worth a punt…
Newscorp (NWS) look to be about to split into the Death Star and the Fourth Estate which is a positive according to some..may start a trend..Investment Bankers take note..lets split everything back up after putting Humpty together..good money in that surely. Enclosed research report on NWS..


Our market to test the 4100 level before reality bites! Still amazed that the Dow is 12600…looks like a safe place to hide..


Things to make me go all gooey!


1.The Queen finally meets the IRA chief Martin Mc Guiness and gets to ask why they scattered her cousin over a Lake!Not to mention the poor boys that were with him.

2.Barclays finally admits that it fiddled their LIBOR rate and gets smacked with a big fine….not sure how they got away with this …amazing stuff..

3.Dr Doom or Dr Roubini has some dire warnings for the Financial markets “”It’s getting worse, there’s already a sovereign debt crisis, a banking crisis, a balance of payment crisis, an economic crisis and all of those things together are getting worse.”

4.Stousur crashes out of Wimbledon…nearly as predictable as Zombieland..

5. The majority of Americans, nearly 65 percent, say Obama is better suited than Romney to handle an alien invasion, according to a new National Geographic Channel poll, USA Today reports.

6.Another day another downgrade..we had Boral yesterday and today its Metcash’s turn as it down grades from 135 to 90m for the full year and rewards shareholders by asking for more money..more?Buying the rest of Mitre 10 ..good luck with that..Bunnings kills it and with Woolies soon to enter the fray are you really sure you want to double your bet!!Morons!

7.Qatar has thrown a spanner in the Glencore Xstrata merger asking for better terms…soaring exec pay and increased risk is not that palatable …three cheers for Qatar..hip hip hooray!

8.Google comes down from Mount Olive with a new tablet to challenge the Apple …

9.FXJ board has rejected the Rinehart Cowboy and now she has two choices either get out with some serious egg on her face…or maybe just bid for the lot already and get rid of Ronnie Corbet and his merry men..it’s just getting interesting!

10.Looks like Slovenia is now lining up for a Zombie Bailout..its like a Pringles pack..once you pop you can’t stop..thanks to Tyler Durden for that gem!

And finally you can buy a whole Tuscan Town for 2m Euros…its on ebay..if only I had enough in my paypal account…

‘History teaches us that men and nations behave wisely once they have exhausted all other alternatives.’ Abba Eban

Have a good day..

Clarence


Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.

Market Commentary-From my Cold Dead hands!

Morning,

 

Here's a quick quiz..how many Zombie Summits have we had in the last two years?....19 ...thats right we have had 19 and look where it has got us..the 19th one in a few days is looking like a similar waste of time..even the new Greek PM has worked that one out!That's one in the eye for Germany..I think the Greek Football chants at the recent German game of 'We will never pay you back"says it all!!

 

Across the pond Obama is moving into election mode and telling the world how he wooed Michelle!!The economy is the issue and news of a slowdown in house price falls was enough to get the bulls out of bed and help the Dow up a tad..our market will make an attempt at a rally but won't be convinced as it meanders in a downwards fashion.I think we will see 3850 in the next week or so..especially as news out of the latest talk fest will disappoint..don't they all..

 

Yesterday I talked about BBG...I thought it was a buy for the risk happy punter around 90 cents..think I was being a little too cautious..maybe under 1.00....this is a huge takeover target if ever I saw one.Private Equity has already had one shot to be dismissed by the Merchant of Bells Beach...he is now looking at how to extract himself from this mess..I suspect that for one of the big Sports brands like Nike it would be a great acquisition and with their deep pockets and retailing skills should be able to make the most of it..this one is not without risks and disappointment but think the upside is around 1.80 to 2.00...a shrewd predator may wait until the rights issue is put away..but if anyone starts sniffing around seriously it may happen sooner..

 

SPI had a moderate bounce last night so expect to see a little green on your screen..

 

Things to make me go whatever!

 

1.Spain on the verge of Junk status...Germany gets a downgrade from a small ratings agency..they are not immune..as Ben Lee said,"I woke up this morning,I suddenly realised ,We're all in this together"

2.'faceplant' continues its short covering rally in the US...may get up to 35 before the rot sets in..lots of negative feedback from users re the new changes..changes to make money..how dare they!!

3.News Corp looking to split into two..the Death Star and the Fourth Estate...got the stock moving up 8% last night...Rupert listening or just the phone hacking scandal pushing him..

4.'Mertle' has had her Charlton Heston Moment this morning as she has said that a shared Euro Bond liability will "NOT happen as long as I live!!"...“I have only five words for you: From my cold, dead hands. Thanks Moses!

5.Seven Media has made a hot gas man the head honcho...Voelte ex WPL chief has replaced Leckie...inspired choice...let's hope he does a better job there..Thought he had retired to Texas or somewhere.

6.Forty five years after the War on Poverty began, there are 49 million Americans living in poverty. That’s a solid good return on the $16 trillion spent so far.

7.Gold continues to underwhelm despite its safe haven attractions..Crude oil at 79 bucks a barrel though does help with inflation numbers and economic activity...bit of pump priming!!

8.Spice Girls reuniting for another concert..as if the UK didn't have enough problems!!

 

As we limp towards the end of financail year lets hope that 12/13 is a better one for the World..the solutions to the 'Zombieland' problem is now blatantly obvious ..take out Mertle!

 

We need a hero!

 

Bueller?Bueller?Anyone?

Clarence

XXX

 

Market commentary for Tuesday 26th June

Morning,


Dow down 138 as fear stalks the market as usual!


Last night we saw the Greek finance minister take one look at the books and resign..ill health apparently..well, it would be enough to make you sick! Spain also went cap in hand to the money lenders and asked for more and to cap it all off in Zombieland Cyprus also asked to be bailed out...too much exposure to Greece...If I buy feta I reckon I have too much exposure to Greece! The Zombie Summit in three days could be the final act in this tragedy..the new Greek PM is not even going as he has choosen to poke his own eye out instead..must have been less painful!!...’Moaning Mertle’s’ refusal to consider Euro Bonds and her East German approach to bailing out the profligate Southern states is going to end in tears..not just for those wayward children but also we are now starting to see the effect on German industry coming through..downgrades are starting to happen.



Against this backdrop its very easy to feel negative..and you should be ...volumes are pathetic and interest is minimal from real investors..today’s bargains could be tomorrows tax loss!



In our market there are a few interesting things..Twiggy has bid to buy more of his own shares...the Rinehart Cowboy has said she will walk away from FXJ if she doesn’t get a few Board seats..maybe she has looked at the books like the Greek Finance Minister! Yesterday Billagone was wiped out as Gordon Merchant said today that maybe he had been a little hasty knocking back a $3.30 bid for his wetsuit especially now they are 96 cents..doh!!In fact he is starting to look like the guy who turned down the Beatles! Albeit from his beach house in South Africa..which is just as well as if he was here he may be lynched! or at least Dakked! I have enclosed the research from Morning star on this one...I reckon that for those with a large, and I do mean large appetite for risk, look at this one below 90 cents...but not for the feint hearted..I know my son who is prime Billagone demographic hates the brand..daggy and his father likes it!!He’s a teenager!!


Things to make me go all Gordon Merchant!


1.Twiggy bids for 60 m FMG shares all or none at $4.90...at least he still believes in China and Iron Ore...
2. Some 5.4 million Americans have been without work for at least six months, and an estimated 750,000 of them are completely broke or heading inexorably toward destitution. Read more: http://www.rollingstone.com/culture/news/the-sharp-sudden-decline-of-americas-middle-class-20120622#ixzz1yqlArN00 This article is truly frightening and so scary that a country as rich as the US can fall so far!
3.Here is one reason why if it does all go to custard, Gold may be the place to be!!China looks to make their currency the reserve and Gold the hot safe haven.

4.28 Spanish banks downgraded...can’t believe they still have 28 Banks to downgrade!!Cyprus gets bailed out as well!
5.SPI falls 34 points overnight..ASX 200 will next target 3850...another 150 points to go then!
6.The Rinehart Cowboy ups her stake in Channel Ten..this woman is not taking any chances ..FXJ and TEN...she doesn’t want those stories leaking out in the media...that’s for sure..
7.VIX spikes up to 20.38 up 12%..expect to see Gold have a good day very shortly!!Please!!!
8.Wimbledon gets under way so at least there are some distractions at night from watching Zombieland melt down!
9.Aussie dollar under pressure again as risk assets are off the table....Greek markets dropped nearly 7% and France down 2.24%..’Mertle’ should be taking notice as German DAX lost 2.1% as well!!
10.Gordon Merchant was once worth 430m bucks now 40!!And I thought I was having a bad run!!


Expect to see our market off 50 today...I got yesterday so right I am surprised anyone reads this newsletter...actually I am not sure if anyone does!!


Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof.


Galbraiths Law!


Have a good day!