Morning Report Tuesday 28th April 2015
Let’s focus on the present as it all gets very interesting
Even with the Dow falling 42 points overnight the ASX200 looks poised to again test the psychological 6000 area as local resource stocks remain firm. Whether we can make a strong assault on the +6100 region is likely to be determined by the RBA’s decision on interest rates next Tuesday as the yield stocks / banks are not participating in the current 3% advance. Today I want to focus closely on my views, positions and plans in coming weeks:
iiNet (IN) – We are enjoying being long the centre of a takeover battle as both M2 Group (MTU) and TPG Telecom (TPM) battle for the prestigious second spot in the sector behind Telstra (TLS). We have sold ½ of our position as the market started to price in the potential for a higher bid from TPG Telecom – yesterdays close was 30c above MTU’s implied bid. I believe there is around a 50% chance of TPG bidding around $10.50 so I feel our position is ideal.
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