Month: March 2015
It’s very easy to get caught up in a journalist’s headline; after all they have to sell newspapers. Yesterday, the Financial Review’s leading story was classic scaremongering, aimed right at the largest nerve of Australian share market investors. The Federal Government’s tax discussion paper released this week raised the idea of abandoning/restructuring dividend imputation as they attempt to balance the books as the mining boom fades into a distant memory. It would be unpleasantly ironic if just as investors pile into high yielding shares, due historically low interest rates, the Government were to change the rules.
• The ASX 200 reversed some of its losses from the previous day, up as much as 85 points, only to drift away and close 45 points higher at 5892.• The banking sector had a positive close, with regional, Bank of Queensland (BOQ) outperforming the ‘big 4’, ending 2.5% higher at $13.79.• The Iron Ore sector had a good rally; BHP Billiton (BHP) closed 3.1% higher at $31.03 and Fortesecue Metals (FMG) up 1.8% at $1.96, although they currently remain in a down trend.• There is now a ~70% chance of a rate cut when the RBA meets on Tuesday, 7 April.
After yesterday’s long report, I thought today would be a short concise report for this short Easter week. There was one point that I want to reiterate and put firmly in perspective, the current position of the Australian stock market:
• The ASX 200 sold off from the start of session this morning, down as low as 5828, only to recover some and close 73 points lower at 5846.• Following the Government’s release of its ‘tax discussion paper’, the sectors hit the most were stocks who offer imputation tax credits, predominately the ‘big 4’ banks. Both Commonwealth Bank (CBA) and National Australia Bank (NAB) closed 1.3% lower at $93.10 and $38.32 respectively as uncertainty and fear has risen to investors’ eyes. See the recent Hickman reports noting our view to transition Shawn’s portfolio away from High yield to predominantly growth stocks.• The Oil stocks sold off as expected, Santos closed 6.8% lower at $7.02 and Woodside Petroleum (WPL) down 3% at $34.00. Caltex (CTX) closed just shy of its recent placement price of $34.50, at $34.44.• Telstra (TLS) shed 1.4% off today at $6.29 as it is regarded in the same basket of the stocks that would be affected with a change in tax. • Panaust (PNA) rallied 40% to $1.715 after Gram revisits PNA and bids at $1.71 a share, versus its previous bids received at $2.20 and $2.30 a share.• Today, we reduced a percentage of a couple of high yielding stocks into a growth stock as proposed in the Hickman Report yesterday.
I apologise that yesterday’s alert confused a number of subscribers. I sold all of my Santos (STO) call options, making a profit of over 25% in a few days. The reason for the sale below my price target in STO was that Oil has already rallied over 20% in 7 trading days, within a whisker of my target.
• The ASX 200 recovered some of its losses from yesterday, after ending 34 points higher (+0.6%) at 5913.• The banking sector outperformed today. ANZ closed 0.9% higher at $36.74 and CBA up 0.5% higher at $94.35. Today, subscribers received a live alert on Shawn’s transaction in purchasing a regional bank ahead of dividend and its current underperformance.• Telstra (TLS) rallied 1.2% higher at $6.38 as investors look for the yielding stocks yet again with a 55% chance of a rate cut factored in May.• Please watch out for the Hickman Report on Sunday.
Mergers and Acquisitions continue as Heinz merges with Kraft Food
• The ASX 200 surprisingly closed lower than expected, ending 94 points (-1.6%) at 5879.• The financials sector led the red sea, Commonwealth Bank (CBA) down $2.00 (-2.1%) at $93.84 and Bank of Queensland (BOQ) down $0.47 (-3.3%) at $13.89.• The Energy sector was positive, Santos (STO) closed 2.9% higher at $7.55 after reports of Saudi Arabia and its Gulf Allies are bombing Yemen Rebels, Houthis. – Subscribers received a live alert today with Shawn taking a ~25% profit in his oil stock position.• Fortescue Metals (FMG) continues to be resilient and ended 3.9% higher at $2.12.
US Home Sales Rise to a 7-year high – any value out there?
US Home Sales Rise to a 7-year high – any value out there?
Really bullish, there's more to go in the reflation rally
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