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Markets Live: $A gets hammered

Date

Australian shares have shed their morning losses, led up by miners and NAB, while the dollar takes a hit on soft GDP data.

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Oops, seems we forgot our traditional farewell to readers: we're signing off now, thanks for reading.

Here's the evening wrap.

The sharemarket broke a three-day losing streak to close 0.3 per cent higher despite weaker than expected GDP growth figures for the September quarter.

BHP, Rio Tinto and the four major banks all recorded gains to help push the benchmark S&P/ASX 200 higher to finish at 5273.8.

By sector, oil and gas companies recorded the biggest gains for the day, up 1.2 per cent, with materials (mining) up 0.9 per cent. Dragging the market down were health care (-0.4 per cent) and consumer goods and services (-0.3 and -0.2 per cent, respectively).

The All Ords closed up 18 points at 5267.5.

 

 

Nine Entertainment has set its listing price at the bottom end of the range $2.05.

The issue was subscribed three times at that price and even at $2.10 orders would have been easily filled.

The pricing sets a better backdrop for the start official share market trading on Friday.

It is understood the major institutional shareholders including AMP, Colonial and Perpetual will take up allocations of between 2 and three per cent.

Even at this lower end of the range the price represents a multiple of 8.3 times.

Great day for shareholders in Melbourne IT after the announcement of a planned 54c per share capital return caused the stock to spike 18 per cent.

The capital return comes on top of a special dividend of 25c paid in August.

After hitting a high of $1.92, the stock has eased back to $1.81 - still 10 per cent higher than yesterday's close. It's been a rollercoaster ride for investors who have held the stock for the past year, with the stock running strongly to as high as $2.27 before falling off a cliff in late July.

The capital return, which will need approval from shareholders at the company's AGM in late January, "is being made to return surplus capital to shareholders from the sale of the DBS division", made possible by Melbourne IT's "strong financial position".

The company's chairman, Simon Jones, also confirmed that CEO Theo Hnarakis will officially vacate the top job tomorrow, with CFO Peter Findlay to be acting CEO.

 

The Australian share market today took bad economic news as good market news, in a reversal of the overnight US performance, CMC chief market strategist Michel McCarthy says:

  • A weaker than expected GDP read saw share losses turn to gains, as traders interpreted the slower growth as a sign interest rates will remain lower for longer.
  • This mirrored American investors reactions that saw stocks sold off on the back of better than expected manufacturing and motor vehicles sales.
  • Recent market weakness is attributed to investment funds preparing for an end of year rush of Initial Public Offerings.
  • Dick Smith Holdings debuted, initially gaining almost 3% before sinking back to the $2.20 issue price. Investors questioned the speed of the value turnaround, and some expressed concerns about a potential share overhang in 2015 – a period unexplored by company projections.

A weaker Australian dollar is unlikely to provide much of an economic buffer against price falls in commodities, which as an asset class are set to be the worst performing for the second year running – hurt by excess supply and slower growth in China.

The figures come as Australian gross domestic product (GDP) for the September quarter provided further evidence of the economy growing below trend, despite a weaker currency providing a boost to export income by helping prop up iron ore prices in particular.

Threadneedle investment specialist Douglas Cairns said although he expected a pick-up in emerging markets growth next year, commodities were likely to suffer continued underperformance in 2014.

“We are not getting more positive on commodities and the reason for that is because China gross domestic product (GDP) growth is stabilising, not picking up. "Infrastructure investment will slow down."

Deutsche Bank strategist Michael Lewis said that because of the tendency of past losers to become future winners, this might imply a more constructive outlook for commodities returns heading into next year. But, “ongoing hazards across the major commodity sectors remain”, he said in a note to investors.

Read more

 

The manager of the world’s biggest bond fund reckons cheap money means all risk assets have been mispriced.

Bill Gross of Pimco has used his latest monthly newsletter, released overnight, to warn investors to sell out of all risk assets.

A week ago, he used his Twitter account to tell investors they should “give ‘thanks’ but not your wallet to the Fed. Begin to de-risk if you haven’t already”.

But the newsletter takes the warning further as he explains that all the ultra loose monetary policies of global central banks has put global economies and all financial markets at risk.

“Global economies and their artificially priced markets are increasingly at risk,” Gross said, explaining that they “are all playing the same dangerous game that depends on a near perpetual policy of cheap financing and artificially low interest rates in a desperate gamble to promote growth”.

The message is what happens when everyone else realises that the cheap money has been keeping the price up and they all head for the exit at the same time.

He said that once everyone realises that stocks, investment-grade and high-yield junk bonds, alternative assets and hedge funds are all “artificially priced” and are not getting enough return for the risk they are taking then those investors will “gradually vacate” the historical asset classes.

He also talks about the possibility markets are at a T-junction. In the past Pimco has seen markets through a “New Normal’’ but the T-junction means as markets “approach a time-uncertain inflection point, and then head either bubbly right or bubble-popping left due to the negative aspects of fiscal and monetary policies in a highly levered world”.

Read more

 

Pimco's Bill Gross manages the world's biggest bond fund.

Pimco's Bill Gross manages the world's biggest bond fund. Photo: Tim Boyle

Falling state final demand in Western Australia - from a year-on-year seasonally adjusted rate of 15.9 per cent from June 2012, to a year-on-year rate of -2.2 per cent for the third quarter of this year - reflects the end of the mining boom, Bank of America Merrill Lynch chief Australian economist Saul Eslake points out:

  • But the annual growth in WA's exports of goods has also slipped from 5.9 per cent year-on-year to 4.4 per cent year-on-year.
  • So that's really striking, because Western Australia was the epicentre of the resources boom.
  • We now have the position where for the first time in a long time, NSW is in front of the average in terms of driving growth.

Here's the seasonally adjusted figures for state final demand in the three months to September:

  • NSW: 0.4 per cent
  • Victoria:0.5 per cent
  • Queensland: 0.1 per cent
  • South Australia: -0.5 per cent
  • Western Australia: 0.1 per cent
  • Tasmania: 1.1 per cent
  • Northern Territory: 1.1 per cent
  • ACT: 1.7 per cent
  • Australia's domestic final demand: 0.4 per cent

After experiencing a brief bump up to its IPO price, shares in Dick Smith have headed steadily south.

Trading down 0.7 per cent at $2.185, the electronics retailer may yet have to prove to investors that it can maintain profits.

CIMB analyst Daniel Broeren forecasts Dick Smith’s profits at $48 million, above the prospectus forecast of $40 million, and rising to $52 million the following year:

  • The sales base has declined slightly. There is a finite amount of costs that can be pulled out of any business and our view is that there is probably a little bit more cost that can be pulled out in the fiscal 15 year, so that should help support some earnings growth in that year.
  • We do see some small sales growth coming through next year supported by store openings, and we see some small cost reductions coming through both in cost of goods sold (COGS) and operating costs. Overall we are targeting 8 per cent earnings growth [in FY15].

Here's the latest on the Australian dollar. The local currency has fallen to a three-month low on the back of weaker-than-expected third-quarter GDP figures.

The currency was buying 91.36 US cents just before the release of the Bureau of Statistics data, but has since tumbled and was trading at 90.56 US cents about 1.30pm. That's its lowest level since early September.

The Reserve Bank has been calling for a lower dollar in the hope that a weaker currency would help to stimulate the non-mining sectors of the economy.

"The RBA is ... likely to direct some more effort into 'jawboning' the Australian dollar lower, possibly into the 85 to 90 US cents trading range in early 2014," CBA senior economist Michael Workman says in a note this afternoon.

"The potential stimulus from a lower Australian dollar is quite large. The RBA cites research implying that an Australian dollar depreciation of 10 per cent will stimulate GDP growth by ½ to 1 percentage point over the following two years."

The dollar since September.

The dollar since September.

S&P Capital’s earnings report is out, showing that 167 companies in the ASX200 have reported annual earnings thus far for financial year 2013:

  • Just 35 per cent have reported earnings better than street expectations, polled by S&P Capital IQ analysts.
  • Collectively, the S&P/ASX 200 has reported a -0.4% EPS surprise.
  • Last year, 40 per cent of all companies in the S&P/ASX200 had beaten earnings street expectations.
  • Of those companies who have announced earnings, 29 per cent have shown double digit or better Y/Y growth.

The share market is back in black, after 3.5 sessions of losses. Leading the way up are the big miners and NAB:

  • BHP: +0.9%
  • Rio: +1.2%
  • ANZ: +0.1%
  • CBA: -0.3%
  • NAB: +0.9%
  • Westpac: flat

 

Most investors know Woolworths and CBA are some of the most reliable earners listed on the ASX. That’s a big reason why they are considered the bluest of blue-chip stocks.

But if a steady earnings profile makes a blue-chip stock, then the list would extend beyond the top 50 to include other names – some better known than others – such as Carsales.com, Mermaid Marine, Silver Chef and Corporate Travel Management.

What most investors want when they buy shares in a company is exposure to a business that’s on a firm financial footing, a history of steady earnings growth, and decent prospects – all at a reasonable price. Sounds simple, really – except we all know it’s not.

But we’ve tried to make things a little bit easier for you by measuring the stability of earnings, operating income and dividends paid of each and every one of the biggest 300 listed companies by market capitalisation, to come up with a short list of the businesses that have had the steadiest earnings profile over the past 10 years.

Read more

 

Safe bets: the baker's dozen of strong ASX earners.

Safe bets: the baker's dozen of strong ASX earners.

Cabcharge today confirmed its founder and executive Chairman, Reg Kermode, is absent from his duties, but still failed to provide an explanation for his no-show at last month's AGM.

In a brief statement the company said Mr Kermode has been granted a "leave if absence from his board duties" but "is expected to return to full duties shortly".

Neill Ford is acting chairman of the taxi payments provider in his absence.

Tigerair Australia will launch four new routes over the next four months and make Brisbane its third Australian base, as it steps up the pressure on Qantas's budget offshoot, Jetstar.

The budget airline, which is now controlled by Virgin Australia, will open the dedicated base at Brisbane Airport in March, where it will position two new single-aisle A320 aircraft.

The opening of the base will create about 120 jobs in Brisbane, including roles for 65 flight attendants and 35 pilots. Tigerair's existing bases are in Melbourne and Sydney.

As part of the expansion into Queensland, Tigerair will launch three new routes from Brisbane early next year to Darwin, Cairns and Adelaide. The airline also begin flying between Sydney to Adelaide on March 11.

Tigerair chief executive Rob Sharp said its decision to open the new routes was based on extensive analysis and consumer demand, and would ''address an under-served budget market''.

Read more

The latest growth figures show one reason why the economy is still struggling to gain some traction: households are continuing to save at high levels.

The households savings ratio rose to 11.1 per cent in the third quarter, up from 10.2 per cent.

"I think all that the confidence measures tell you is that consumers and businesses are pleased with the change of government. But beyond that, not much has changed," Bank of America Merrill Lynch chief Australian economist Saul Eslake says:

  • While there used to be a channel from rising house prices to increased consumer spending 10 years ago, when people were willing to borrow against increases in house prices in order to fund additional spending, there's no evidence that they are doing that now.
  • So we've got a recovery that's narrowly based [in housing] and is not really spilling over into the broader economy yet.
More money in the piggy bank.

More money in the piggy bank.

Well, the good times didn't last long for Dick Smith shares - the stock has fallen back below the issue price of $2.20 and is currently trading at $2.19.

Energy and Resources Minister Chris Hartcher has resigned from the NSW government cabinet in response to a corruption inquiry.

Hartcher said he had been forced to resign as a result of an ICAC inquiry, but was confident he would clear his name.

"My resignation follows the issue of a search warrant by the Independent Commission Against Corruption against me," he said. "I am confident I will be cleared of any wrongdoing."

Hartcher said he would continue to serve as the MP for Terrigal while he awaits the outcome of the ICAC's investigations.

Read more

Stepping down from the cabinet: NSW Resources Minister Chris Hartcher.

Stepping down from the cabinet: NSW Resources Minister Chris Hartcher. Photo: Sasha Woolley

What can we read from the weak third-quarter GDP numbers? Here's a good take from Saul Eslake, the chief Australian economist for Bank of America Merrill Lynch:

  • The transition from growth led by resources investment to growth led by a combination of resources, exports and other components of domestic demand is going fairly slowly.
  • While we are seeing big increases in house prices, and we've seen some increase in building approvals too for units in Sydney, overall, dwelling construction is pretty soft.
  • The higher house prices are not evidently boosting private consumption expenditure in part because households are choosing not to monetise the increase in the value of their dwellings by borrowing against them.
  • So household spending growth is being constrained in line with what is relatively weak growth in disposable income.

 

The much anticipated stock market debut of Dick Smith has resulted in a small bump up for the electronics retailer.

Shares opened 3.2 per cent above the initial public offering price of $2.20, at $2.27 and rose as high as $2.32.

In November last year, private equity firm Anchorage purchased Dick Smith, and its 325 store network, for $94 million from Woolworths.

At an IPO price of $2.20 per share, Dick Smith was valued at $520.3 million, a more than 400 per cent increase on just over a year ago. Much of that increase will be based on investors’ interpretation of the company’s forecast $40 million net profit for this financial year.

Sales of new vehicles bounced in November, compared to the previous month, as brisk demand for sports utilities outweighed softness elsewhere.

Total vehicle sales in November were 96,924, an increase of 4.5 per cent over October. According to the Australian Federal Chamber of Automotive Industries' VFACTS report that number equated to a rise of 1.5 per cent when adjusted for seasonal factors. Sales were still down 1.4 per cent on November last year, however.

Helping was Australians' long love affair with SUVs where sales were up 9.9 per cent on November 2012.

For the first 10 months of 2013, sales were 2.2 per cent ahead of the same period last year, giving an annualised sales rate of 1.132 million vehicles.

For November alone, Toyota retained first place on the sales ladder with a market share of 19 per cent. Holden took second spot with 11.0 pe rcent, while Hyundai kept third spot with 9 per cent.

In the current airline tit-for-tat, Virgin Australia founder Sir Richard Branson has hit out at the prospect of government assistance for Qantas Airways, saying it would be "strange" for a Liberal government to tilt the playing field in the larger airline's favour.

"If Qantas was better managed and offered the public a decent service; it would not be in the financial mess it is currently claiming it is in," Sir Richard says. "Government should be there to encourage competition, not to prop up the weak when the going gets tough."

Qantas is seeking government assistance to shore up its investment grade credit rating, something that rival Virgin lacks despite being majority owned by three state-backed airlines.

That means Virgin has higher financing costs and has to set aside funds in restricted accounts to pay credit card companies.

The dollar has really plunged on the GDP figures, falling more than half a cent to a session low of 90.55 US cents.

But CBA chief economist Michael Blythe reckons the currency still isn't low enough to satisfy the Reserve Bank mandarins and expects more jawboning:

  • The interest rate sensitive parts of the economy are moving the way they want - not as clear as it could be in this data.
  • We’ll hear them continuing to talk about the need for a lower currency to help with the growth transition.
GDP and the dollar

GDP and the dollar

The latest GDP figures show that the Australian economy is underperforming but there's reason for some optimism, Moody's Analytics associate economist Katrina Ell says:

  • We are cautiously optimistic earlier rate cuts will bring growth back to trend at 3 per cent later in 2014.
  • There have been tentative improvements in the interest-sensitive sectors like retail and construction that should improve further in coming months.
  • Monetary policy takes about 12 months to filter through the economy and the latest cut was in August.

A couple of reactions on Twitter to the softish GDP numbers:

The Australian dollar, which was trading at 91.36 US cents before the release, slipped below 91 US cents. It was last buying about 90.97 US cents.

The economy continued to expand at a below-trend pace in the third quarter of this year, with the annual growth rate at 2.3 per cent.

The economy grew a seasonally adjusted 0.6 per cent in the three months to September, after expanding by 0.6 per cent in the second-quarter, Bureau of Statistics data released this morning showed.

Economists had consensus forecasts of 0.7 per cent growth for the quarter and 2.6 per cent year-on-year.

Growth in the third-quarter was driven by the mining industry, which added 0.3 per cent to GDP. The construction, transport, postal and warehousing, financial, public administration and healthcare industries also contribute 0.1 per cent each to growth.

Read more

Westfield Group's securities have jumped more than 6 per cent on plans to separate its global retail assets from its Australia and New Zealand businesses.

Westfield's Australia and New Zealand businesses will be merged with Westfield Retail Trust (WRT) to form a new company, Scentre Group. Its international assets will stand alone as Westfield Corp, the company said this morning.

Westfield securities have jumped 6.2 per cent to $11.00, while WRT are up 3.3 per cent at $3.10.

The third-quarter GDP figures out in 15 minutes are set to show that the economy is continuing to grow below trend, with consensus estimates at 0.7 per cent growth for the quarter and 2.6 per cent year-on-year.

Headwinds facing the economy include what the RBA believes is a still overvalued Australian dollar, continued spending cautiousness from consumers and businesses and rising unemployment, Commonwealth Bank economists say.

At the same time, it's not all bad news. Balance of payments data released yesterday pointed to signs that a growth transition is underway.

Export volumes grew by 0.1 per cent as import volumes fell by 2.4 per cent for the third-quarter. Net exports were expected to add 0.7 percentage points to third-quarter GDP.

"There are clear signs that one part of the required growth transition is under way … The stronger net exports position is, in our view, likely to continue through 2014 and 2015," CBA senior economist Michael Workman says.

 

 

James Packer’s $400 million Sri Lankan resort and casino complex planned by Crown faces additional delays and is unlikely to be approved before the end of the year, a top government official has said.

The new delay comes after opposition politicians alleged Packer was getting concessions not given to local entrepreneurs.

Buddhist leaders also said the casino could be detrimental to the culture of Sri Lanka, a predominant Buddhist country where gambling is not accepted morally, despite the on-again, off-again presence of casinos dating back to the 1990s.

"The delay is not unexpected given the Sri Lankan Parliament has been dealing with its recent budget and subsequent debate. Discussion between Crown and the Sri Lankan Government continue," a Crown spokesman says.

Crown shares are down 0.9 per cent at $16.36.

The site of James Packer's proposed $350 million resort and casino in Colombo.

The site of James Packer's proposed $350 million resort and casino in Colombo. Photo: Supplied

Fears the US Federal Reserve will reduce its massive stimulus program possibly in December are weighing on global markets as investors rush to sell equities ahead of the Fed’s last meeting of the year.

Consensus expectations around the outlook for interest rates in the US have become more aligned with the Fed’s own guidance which would give policymakers a degree of comfort that markets are ready for the much anticipated taper, ANZ economist Tom Kenny, says:

  • It’s going to be a long way off before rates start to rise. Even though the market has brought forward its timing for when the Fed could start to pare back asset purchases, pricing around the Fed funds rate has stayed relatively constant over the past few months.

The central bank has guided towards tightening no sooner than mid-2015.

ANZ suggests a taper coming in the first quarter of 2014 but Kenny says if anything, the risk now was that jobs data comes through stronger than anticipated and the Fed is moved to taper earlier.

“If there’s a 200 [thousand]-plus [employment growth] number and in combination with the fact that market expectations are better aligned with forward guidance the Fed will feel more comfortable about tapering by a small amount in December,” he says. “I think if you get a 200 plus number, expectations about tapering will only intensify.”

Today's IPO watchers may have the Dick Smith listing at midday in their sights, but there's more ahead:

In the biggest float of the year, Nine Entertainment is expected to list between $2.08 and $2.10 a share, after the $2 billion initial public offering received solid support from North American investors overnight, AFR StreetTalk is reporting.

The indicative share price range is $2.05 to $2.35, with the bookbuild believed to be three times covered at the bottom end, StreetTalk says.

It is understood the book was covered around $2.12 but the float’s co-ordinators want demand to exceed supply to help support the stock in the secondary market.

The bookbuild will close at midday and Nine’s bankers will look through the register to help determine the final price, ahead of a public market listing on Friday.

With most still talking about the vanilla RBA statement yesterday, I feel the ‘hard talk’ strategy that the RBA is currently using to weaken the AUD is breaking down, says IG's Evan Lucas:

  • There is growing evidence that the RBA is being pushed towards intervention (either through further rate cuts or an unconventional method), as its ‘hard talk’ is running out of puff faster than expected. 
  • Only three words were added to the December statement compared to November’s; but the key lines remained: 1. AUD is 'still uncomfortably high.' 2. 'Lower level of the exchange rate is likely to be needed to achieve balanced growth in the economy.' 3. 'The pace of borrowing has remained relatively subdued overall', which implies the RBA is aware of the housing pick-up, but is not worried about a bubble (yet).
  • However, unlike the Melbourne Cup statement which saw a tick up in the currency due to the interpretation that another rate cut in 2013 was highly unlikely (and this assumption was right), the jump in AUD/USD this time around is that idle threats are just that idle, and overriding macro data will push AUD/USD higher.

The dollar is currently fetching 91.36 US cents.

Here's the Warrnambool Daily: Saputo is continuing to steam along in the fight for Warrnambool Cheese and Butter, despite being banned from paying shareholders who accept its offer.

The Canadian dairy behemoth says has increased its holding in WCB from 10.99 to 13.56 per cent. But it doesn’t have ownership of these shares yet.

The Australian Takeovers Panel has banned Saputo for at least two months from processing acceptances to its offer after rival bidder Murray Goulburn protested that Saputo had ‘‘misinformed’’ the market.

Read more

 

Most sectors are in the red this morning, with energy leading the losses after Santos' profit warning pulled down the company's shares 2.3 per cent.

Here are the main winners and losers in the top 200:

Top gainers and losers this morning

Top gainers and losers this morning

The competition watchdog says Westpac's $1.45 billion purchase of Lloyds Banking Group's Australian assets will not substantially lessen competition in the market for car loans.

The deal - Westpac's biggest acquisition since it gobbled up St George in 2008 - has been the subject of an informal review of the Australian Competition and Consumer Commission.

The purchase is set to deliver Westpac $3.9 billion in car loans, and the watchdog has been probing its likely impact on dealers and buyers.

ACCC chairman Rod Sims this morning said it had looked closely at the degree of competition provided by financiers from Toyota, Nissan, ANZ and Macquarie Group.

The car company's financing arms competed to provide loans to dealers to secure new stock, he said.

The traditional Cyber Monday sale in the US is being trumpeted as the 'biggest online shopping day ever' - after  breaking through the $US2b barrier.

Sales grew 16 per cent from last year to $US2.29 billion ($2.52 billion), lifted by more shopping on mobile devices, a market tracker says.

The Adobe Digital Index survey said online sales for the key holiday shopping day reflected an 80 per cent jump in sales from mobile devices like smartphones and tablets. Mobile accounted for some 18.3 per cent of online sales.

"Retailers earned 10 per cent of their annual sales in just the last five days, an increase of 26 per cent year-over-year," said Tamara Gaffney, principal analyst for Adobe Digital Index.

Read more

A member of staff collects orders at a Amazon fulfilment centre.

A member of staff collects orders at a Amazon fulfilment centre. Photo: Reuters

The market has opened lower with the benchmark S&P/ASX200 down 24.4 points at 5,231, while the broader All Ordinaries index is down 22.5 points to 5227.

On Wall Street, the Dow and the S&P 500 fell for a third straight day, dropping from record levels in a broad decline as investors took profits amid signs of a weak holiday shopping season.

Retail and consumer discretionary stocks were among the weakest of the day. Amazon slipped 2 per cent to $US384.66 and was one of the biggest drags on the S&P 500. The S&P retail index shed 0.8 per cent after the holiday shopping season got off to a tepid start.

Earlier-than-usual online holiday discounts were expected to have dampened Cyber Monday sales in the United States. Still, data firm comScore forecast US online sales to have hit $US2 billion on "Cyber Monday," the highest since the firm began tracking such information.

"Retail sales have been mixed, and while I suspect they will be strong overall at the end of the season, right now, investors are looking for reasons to sell after the amazing returns we've seen over the past several weeks," said Joseph Tanious, global market strategist at JPMorgan Asset Management in New York.

Read more

The third-quarter GDP figures out this morning are set to show that the economy is continuing to grow below-trend, with consensus estimates at 0.7 per cent growth for the quarter and 2.6 per cent year-on-year.

Headwinds facing the economy include what the RBA believes is a still overvalued Australian dollar, continued spending cautiousness from consumers and businesses and rising unemployment, says Commonwealth Bank economists.

At the same time, it's not all bad news. Balance of payments data released yesterday pointed to signs that a growth transition is underway,

Export volumes grew by 0.1 per cent as import volumes fell by 2.4 per cent for the third-quarter. Net exports were expected to add 0.7 percentage points to third-quarter GDP.

"There are clear signs that one part of the required growth transition is under way ... The stronger net exports position is, in our view, likely to continue through 2014 and 2015," Commonwealth Bank senior economist Michael Workman says.

The latest figures also showed that the current account deficit for the three months to September widened to $12.7 billion from $12.1 billion in the previous quarter.

The terms of trade decreased by 3.3 per cent for the quarter, and was 3.5 per cent lower than a year ago.

It's IPO week and today we've got Dick Smith on the menu.

Shares are expected to trade strongly as investors rush the chance to invest in a mid-cap retailer with a national footprint of stores and chief executive Nick Abboud beats the drum over the electronic store's growth credentials.

''We are going to be a growth stock,'' Abboud on the eve of its first day of trading on the ASX following a lightning quick corporate reincarnation and turnaround since it was bought by private equity for only $94 million last year from former owners Woolworths.

With its shares issued in the IPO at $2.20 each, Dick Smith is primed for a market value of at least $520 million when trading begins at midday, crystallising a massive pay day for its private equity owners Anchorage, estimated to be around a quarter of a billion dollars.

Read more

Dick Smith.

Dick Smith. Photo: Glenn Hunt

Santos has signalled fiscal 2014 output to reach as much as 57 million barrels of oil equivalent in 2014, thanks to the start up of new projects, such as its gas export project in PNG.

In an investor briefing to be given later this morning, the company will flag fiscal 2014 output at 52-57 million barrels of oil equivalent.

This compares with output which is now expected to come in at 51 million barrels of oil equivalent for fiscal 2013.

Read more

Westfield Group will split its operations into an Australian and New Zealand business and an international business.

Westfield Group’s Australian business will be merged with Westfield Retail Trust.

Westfield chairman, Frank Lowy, said Westfield’s international business and its Australia/NZ business had both grown in scale and quality to the stage "where they can now stand on their own".

Read more

What you need2know this Wednesday:

  • SPI futures down 44 points to 5,210.
  • AUD fetching 91.30 US cents, 93.70 yen, 67.13 euro cents, 55.63 pence
  • On Wall St, S&P500 -0.3%, Dow Jones -0.6%, Nasdaq -0.2%
  • In Europe, Eurostoxx -2%, FTSE100 -1%, CAC -2.7%, DAX -1.9%
  • Spot gold up 0.1% to $US1221.42 an ounce
  • Brent oil rises 1.1% to $US112.63 per barrel
  • Iron ore gains 0.5% to $US131.70 per tonne

Read more

Good morning. Welcome to the Markets Live blog for Wednesday.

Contributors: Jens Meyer, Max Mason, Luke Higgs

This blog is not intended as investment advice

BusinessDay with agencies

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  • Get on QAN at 1.15 Contrarian? BTW how was the cruise? He he....

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 4:50PM
  • nice comeback from LEI......and it sustained thru the day,hope those ponderers/buyers got onboard at the cheap prices yesterday....keep on movin.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 4:35PM
  • Anyone seen BOQMAN?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 4:27PM
    • Mildred saw him stewing with his mate alfa lol

      Commenter
      George Roper
      Location
      46 Peacock Crescent
      Date and time
      December 04, 2013, 4:46PM
    • never mention the BOQ!!!!!!!!!!!!!
      what were you saying about the WBC this morning? nice call.

      Commenter
      BOQMAN
      Location
      Date and time
      December 04, 2013, 5:12PM
  • Taper means only ~$15B less from $85B per month. Meh, bring it!

    Commenter
    GS
    Location
    Date and time
    December 04, 2013, 4:20PM
  • Buyers quickly snapped up any WBC sellers near $32 and drove it to finish higher than yesterday. All is good.
    Next year's dividend is better than money in the bank.

    Commenter
    Chumlee
    Location
    Date and time
    December 04, 2013, 4:09PM
  • Go GSE - big trades (by GSE's standards) today but no announcement - anyone know anything?

    Disclaimer - I'm a long suffering shareholder :(

    Commenter
    Sir Toppen Hatt
    Location
    Date and time
    December 04, 2013, 3:44PM
  • It seems the market is continuing to punish GNC for something it had no control over. Pre-takeover price was about 11.50 i would have expected it to at least start the climb back. I have bought and am in for the long term, just a bit surprised no sign of a little bounce.

    Commenter
    Peter
    Location
    3rd world country - 1st world lifestyle
    Date and time
    December 04, 2013, 3:33PM
  • So Bill Gross is basically implying that no company will ever make a profit again?

    Sure when QE finishes share prices will fall while people adjust. But tell me people will stop shopping at woolies and coles, they will stop buying petrol, they will stop banking?? please what a drama queen.

    Commenter
    Gocats23
    Location
    Date and time
    December 04, 2013, 3:31PM
    • "Buy Bonds" is his pitch

      Commenter
      NSMR
      Location
      Date and time
      December 04, 2013, 3:40PM
  • "The manager of the world’s biggest bond fund reckons cheap money means all risk assets have been mispriced."

    You don't need a business degree or be a titan of wall street to comprehend that artificially low interest rates distort asset prices.

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    December 04, 2013, 3:25PM
    • I think he is trying to cover his ass in case there is a December taper. He can then say I told you so.'' Probably other fund managers may all follow suit and may just cause a stampede. My reading is that mostly they are mainly seeing March 2014 as the earliest possible taper. I see it much later.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 3:56PM
    • Or that those who stand to benefit from selling and/or managing alternative investments will talk up their book. Naked self-interest is the predominant concern. I keep a huge salt shaker by my desk to help in reading such opinions.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 4:20PM
  • AAD, CFX, and CMW all have their ex dividend dates in late December. What are people's thoughts about buying the stock now to get the dividend vs waiting until the ex dividend date or later to pick up the cheaper stock but waiting months until the next dividend.

    CMW confuses things because it pays out dividends 4 times a year rather than twice, so the stock shouldn't fall as much on the ex div date but you don't have to wait so long until you get the next dividend.

    Commenter
    Basic
    Location
    Date and time
    December 04, 2013, 3:23PM
    • I picked up some CFX today at 1.955. Can't complain with that price in the medium-long term.

      Commenter
      GS
      Location
      Date and time
      December 04, 2013, 4:18PM
    • CFX i hold dearly, would buy in at anything under $2.00 = yield around 6.5%., price dosnt move alot but solid earnings thru last coupla of years and more to come...seeing some selling down of assets lately but im in for the long haul.been fruitful so far.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      December 04, 2013, 4:32PM
  • "what happens when everyone else realises that the cheap money has been keeping the price up and they all head for the exit at the same time"

    Pollyannas have fingers in ears - "I can't hear you!" ROFLMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 3:14PM
  • Nice move on PDN. Long at 48c. Kiss of death lol.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 3:12PM
    • I'll give you that but your wins are few and far between. Still sub 10% profit for you on that little win.

      Commenter
      Contrarian
      Location
      Date and time
      December 04, 2013, 3:42PM
    • Almost as much of a classic dud trade as this:

      "Long SBM 52c, takeover target" 2-Oct-2013 Allan

      SBM is now just 25c, he's wrong again by only 50%...ROFLMAO!!!

      Commenter
      This_B$_Al_has_nfi
      Location
      Date and time
      December 04, 2013, 3:50PM
    • LOL "This_B$_Al_has_nfi" someone is very very angry with me. He has to cherry pick one trade and ignore the 20+ other wins this year. Cheer up mate.

      Oh Contrarian give it up and take the blinkers off. Did you miss the LNC LYC, FMGx3, QAN, CRZ, XRO, BHP, FLT, ANZ, CBA, MQG, BOQ shorts?

      How about 25% on FXJ long?

      He he....

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 4:47PM
  • Not that I am interested in cars but a Mercedes article on Bloomberg caught my eye. "“People were skeptical as to how luxury consumers would receive a sub-$30,000 Mercedes,”

    http://www.bloomberg.com/news/2013-12-03/mercedes-rides-29-900-coupe-to-wider-u-s-luxury-lead-over-bmw.html

    The same entry level CLA in Australia is $51k inc dealer delivery (whatever the hell that is). And there is no luxury car tax on it as the rrp is $49,900. Are cars the final bastion of unavoidable price gouging in Australia ?

    Commenter
    NSMR
    Location
    Date and time
    December 04, 2013, 3:09PM
    • No boats are the same. The Bayliner Bowrider 175 which is a cheap entry level boat (top selling boat in the world) is $30k in Australia and $20k in North America, Europe and Asia.

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      December 04, 2013, 4:21PM
  • "The manager of the world’s biggest bond fund reckons cheap money means all risk assets have been mispriced.

    Bill Gross of Pimco has used his latest monthly newsletter, released overnight, to warn investors to sell out of all risk assets."

    The ASX is high risk, the entire economy being propped up by houses and holes. Derisking means selling out of the ASX.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 3:09PM
    • He doesnt have the pull of the billionaires when they make a call....Icahn,Buffet,Stamos say something randomly and all hell breaks loose,maybe because they have their own money to play with and Gross uses everyone elses...out of risk into bonds...seethrough...oh yea thats right you manage bonds.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      December 04, 2013, 4:44PM
  • Anyone knows why TPG had a trade halt this morning?

    Commenter
    meems
    Location
    Date and time
    December 04, 2013, 2:59PM
    • AGM results?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 3:52PM
  • "annual growth in WA's exports of goods has also slipped from 5.9 per cent year-on-year to 4.4 per cent year-on-year"

    So there you have it. A massive increase in iron ore shipped has resulted in lower growth.

    The boom is well and truly over.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 2:54PM
  • Bugger! I'm still in the red for the year.

    Commenter
    Gee up
    Location
    Bedsit in Prahran
    Date and time
    December 04, 2013, 2:52PM
    • Black, but this week has peeled a little off it.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 3:45PM
  • More on the Dick Smith float - no way is it worth half a billion dollars, but $94m ??

    That is the supposed sale price from Woolies. Given that this FY's earnings are $40m - what were the Woolies execs drinking when they agreed to that deal?

    Not a growing company for sure, but selling on a P/E of 2? Or were those Woolies execs given equity in Anchorage?

    Commenter
    Bud Fox
    Location
    Date and time
    December 04, 2013, 2:44PM
  • The Vanguard Group getting out of BWP with a 6.4% yield and int divd date coming 21st dec really puzzles me? i thought these ETFz were in for $ back to the unit holders.Ok the capital gain for stock price might not be anything spectacular...but 15.8% avg sharehold return over 12 months and 6.4% yield says beat that conservative solid performance...anyone.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 2:31PM
    • In on BWP today for the first time in a couple of years. I'm enjoying the REIT drops of this last week or so!

      Commenter
      GS
      Location
      Date and time
      December 04, 2013, 4:22PM
  • MLB just gave us the best xmas present of all...+++ a 54c per share return of capital yaaaa
    all holders who held thru the last grim months,time to pop the corks,santa has arrived. up 14% on annouce as well

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 2:17PM
    • It's only a capital return, no franking and there will be a consequent massive ex-div effect. I couldn't believe how excited the market got before some either came to their senses and/or sold out. The capital return had been on the cards for several months with early Dec as the announcement date. I suppose it all depends on how irrational the market is as to whether there will be any gain in selling out beforehand.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 2:35PM
    • good for you @BSB...enjoy!

      Commenter
      Looking for Value
      Location
      Date and time
      December 04, 2013, 3:06PM
  • "The Reserve Bank had revised down its growth forecasts for Australia in 2014 and 2015"

    Why is growth slowing? I thought borrowing hundreds of thousands of dollars to buy investment property to rent out for a few hundred bucks a week (before expenses) was going gangbusters?

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    December 04, 2013, 2:15PM
  • How are house prices booming and doomed when the household savings rate is so high currently? Mabye people are ready for the rainy day and it wont be so scary this time.

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    December 04, 2013, 2:12PM
    • Wwwwhat ? Not exactly sure of your question but most FHB's can see value and price and realise houses are overpriced. They can save but the mortgage is horrendous. Investors and the Chinese are buying - who will bail out of the market if the Aussie heads to $0.80?

      Commenter
      NSMR
      Location
      Date and time
      December 04, 2013, 3:18PM
    • @Wwwish Lion, saving for the rainy day ? No RBA trying to encourage peolpe to spend by lowering interest rate and jawboning A$. If you save money now, it will worth less tomorrow.Spend it who care about the future. WTF

      Commenter
      Bank Bank
      Location
      Date and time
      December 04, 2013, 3:52PM
  • do you just love it!!

    Markets Live: NAB leads comeback

    Commenter
    NABMAN
    Location
    Markets Live: NAB leads comeback
    Date and time
    December 04, 2013, 2:10PM
    • NAB! The thing's got GRUNT!

      Commenter
      bearly_there
      Location
      Date and time
      December 04, 2013, 2:27PM
    • You have to wonder if you haven't stepped into a parallel universe !

      Commenter
      Peter
      Location
      3rd world country - 1st world lifestyle
      Date and time
      December 04, 2013, 3:28PM
    • The banks look like they are on the way back up...at least for December.... they will most likely move lower again in January when the Xmas credit-card bill come rolling in....

      Commenter
      mirage
      Location
      Date and time
      December 04, 2013, 3:37PM
    • @mirage...no..banks gonski for a little while yet.

      Commenter
      no banks .. no party!
      Location
      Date and time
      December 04, 2013, 4:17PM
  • Money is a good servant, but a poor master

    Commenter
    prometheus
    Location
    Date and time
    December 04, 2013, 2:09PM
  • I am out of MGX with nice profit. I have kept AGO and FMG as I have a feeling that they will announce an agreement for AGO to use their rail network very soon. When this happens, watch AGO go.

    Commenter
    GeoPerth
    Location
    Date and time
    December 04, 2013, 2:07PM
  • RIP ROFLMAO.

    Welcome "Dog Days"

    Sheesh!!

    Commenter
    Why?
    Location
    My Universe
    Date and time
    December 04, 2013, 1:59PM
  • I do feel sorry for all those that sold on the bell, esp. banks
    Moms Pops, you have to learn that this is one big game played by powerful sources
    HFT and Huge funds, look at the number of stocks changing hands
    Stick with it, do not panic , as 15-18th ranked in the world our banks are as good as it gets

    Commenter
    stu
    Location
    Date and time
    December 04, 2013, 1:45PM
    • agree 100% @stu

      Commenter
      Looking for Value
      Location
      Date and time
      December 04, 2013, 2:17PM
    • all good things must come to an end. CBA may not hit $80 again for a couple of decades.

      Commenter
      worried33
      Location
      Date and time
      December 04, 2013, 2:18PM
    • "as 15-18th ranked in the world our banks are as good as it gets"

      Except for 1-14.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 3:51PM
    • except Allan my dear man, the 14 aint here
      Went from 8400 down to 1400 up today, roll with the punches
      Nah, cba will reach 80 again and anz has a lot more steam to come

      Commenter
      stu
      Location
      Date and time
      December 04, 2013, 4:45PM
  • Market propped up today by the plunging $A.

    Won't last. Big correction ahead. Dog days.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 1:26PM
    • How's your 2500 call from last year going? Only 100%+ wrong at this stage. You're a broken record who has a history of getting it wrong.

      Commenter
      Contrarian
      Location
      Date and time
      December 04, 2013, 2:01PM
    • Is this prediction any more or less correct than the one along similar lines that you made back in October?

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 2:05PM
    • What sort of comments do we have to look forward to on here from primary school educated folks in a falling market?

      Commenter
      High School
      Location
      Graduate
      Date and time
      December 04, 2013, 2:27PM
    • Cheer up. Plenty of money to be made shorting eg banks.

      Big falls ahead.

      Any trades yet? Nope. Nada. he he....

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 2:40PM
  • The Household Savings Ratio graph certainly shows why retail is doing it tough. A slowing economy, as we now have, will only add to that as people nervous about their jobs either pay off debt or cut their spending in favour of saving. Just heard Joe Hockey talking about this morning's GDP numbers saying this gov't would add to economic growth but not a word as to how he would do it. Cutting gov't spending, as is the Libs' stated policy, will have the opposite effect.

    Commenter
    mitch of ACT
    Location
    Date and time
    December 04, 2013, 1:05PM
    • It's only natural that consumers' attitudes would be influenced by the GFC. This will eventually change. As house prices continue to increase, people will abandon the "dream" of owning their own house and will seek to live for the day if you like. They will rent, they will spend more, they will "enjoy" their lives. Owning your own home is based on a very outdated american dream. The world is not the same as it once was. Give it time and retailers will be fine.

      Commenter
      Andrew137
      Location
      Date and time
      December 04, 2013, 1:30PM
    • How? How? By wishing. Wishing will make it so.

      Commenter
      Roger
      Location
      Date and time
      December 04, 2013, 1:42PM
    • @Andrew137 people who own their own home spend more on that home on furnishings and fittings than renters. Renters are constrained by what is acceptable to their landlord. Retail will do it tough from relying on renters.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 2:03PM
    • Well lucky the retail industry doesn't solely consist of house fittings and furnishings hey?

      Commenter
      Andrew137
      Location
      Date and time
      December 04, 2013, 3:16PM
    • @Andrew137 Renters and homeowners both have to eat and buy clothes etc. Homeowners are the only ones who can buy what they like for where they live and are not subject to anyone else's restrictions or what's already in place.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 3:45PM
  • ASX200, crazy price action. 20 pt swings both ways. very unusual.

    Commenter
    J.
    Location
    Syd.
    Date and time
    December 04, 2013, 1:02PM
    • been crazy all year bud

      Commenter
      no banks .. no party!
      Location
      Date and time
      December 04, 2013, 1:40PM
    • Take a look at VRL over the sat two weeks, and today ..... that is wild. Maybe good opportunity for the in/ out guys, but not for me ..... Mr Long Long Long term !

      Commenter
      Pierre
      Location
      Date and time
      December 04, 2013, 1:42PM
  • Does anyone have a kind word for a Distribution Reinvestment Plan (DRP).

    Commenter
    Wally
    Location
    Flynn
    Date and time
    December 04, 2013, 12:52PM
    • A great thing to have in a growth stock, particularly if the new shares are issued at a discount. It's like compound interest for your long-term holdings. Not such a great thing to have if the shares have peaked as you may sustain a loss on shares acquired under a DRP.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 1:27PM
    • Tedious to keep the records of all the small acquisition packagesfor capital gains tax.

      Commenter
      confused
      Location
      syd
      Date and time
      December 04, 2013, 2:06PM
    • dodge the taxation on divds if you reinvest the distribution back into the stock,sometimes with a discount.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      December 04, 2013, 2:14PM
    • As someone new to the game, I've always wondered what happens to the remainder of the dividend. I.e. if you have a $10 dividend, and drp is $3 a share so you get $9 worth, what happens to the left over $1?

      Commenter
      newbie
      Location
      Date and time
      December 04, 2013, 2:16PM
    • @newbie it sits in trust until the next distribution and is added to your dividend then to work out how many shares can be acquired on your behalf.

      If you sell out of your holding when there is money on trust for you, the DRP has provisions, which will usually either send you a cheque / transfer you the cash, or in what is becoming a more common occurence, usually if the value is less than $X, the outstanding amount is donated to a charity nominated by the company on your behalf.

      Commenter
      WPHT
      Location
      Date and time
      December 04, 2013, 2:41PM
    • @newbie some of the larger companies maintain an account and you get the credit for it next time, some will round up the number of dividends, some will just keep the $1.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 2:43PM
    • @BearShapedBull, reinvesting the dividend does NOT avoid the taxation of that dividend, it is taxable plus any franking credits as are non-reinvested dividends. Plus you have to account for the cost of it for CGT purposes when you sell the stock.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 2:46PM
    • @bear - you still have to pay tax on the grossed up dividend even if it gets re-invested. Reinvestment amount is your cost base for CGT.

      Commenter
      confused
      Location
      syd
      Date and time
      December 04, 2013, 2:47PM
    • @newbie, don't worry about that, it is held in credit and will be used for adjustments on your DRP in next issue.
      Personally I use DRP on all shares except QBE where there is an alternative option.

      Commenter
      Pierre
      Location
      Date and time
      December 04, 2013, 2:50PM
    • @confused, yes the problem of keeping track of the DRP price for individual shares is a pain. I look after the accounting for quite a few super funds and I developed a s/sheet that records all share sales and purchases and a method of keeping track of the cost prices and holding period for individual parcels of shares. The s/sheet will even allocate deferred tax components on a pro-rata basis where such a distribution is made. It has made a complicated job very easy.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 2:51PM
    • @confused
      I don't agree with your comment - whenever I am advised of shares issued under a DRP I update the details in my "Shares and Tax" spreadsheet = this takes a few minutes at most.

      @newbie
      In your example, what happens is that the "extra" $1 (left over after three shares were issued at $3) is kept in your DRP account - it is added to the $ available for DRP issue when the next dividend happens.

      Commenter
      Dr Kiwi
      Location
      Date and time
      December 04, 2013, 3:08PM
    • Thanks to everyone for the info. Syd was in a trading halt for one week and have come out of it mentioning the plan. Syd price is down to $3.84 at present. Managed to buy in at $3.83 with div due on 21/12.

      Commenter
      Wally
      Location
      Flynn
      Date and time
      December 04, 2013, 3:40PM
  • Capatilism will not survive. It seems people are already starting to realise money cant buy happiness. Ideally, Governments job is to adminsitrate, not to be a purveyor of land. Thats where the system went wrong and people started to get greedy, which will lead to the fall.

    Commenter
    Ryan James Hardy
    Location
    Date and time
    December 04, 2013, 12:52PM
    • Capitalism will survive since it's the superior way of allocating resources. What we will find though is that the market will no longer be the ultimate driver of how we implement allocation, instead the wellbeing of ones people - in the ethnic sense - not just today but in the long term will be the driver of economic policy. Capitalism should thus take on a format which fulfills and enables a people's full capability and destiny.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      December 04, 2013, 1:50PM
    • Its not about happiness, its about giving people something to do. In that sense, it does work reasonably well

      Commenter
      igroki
      Location
      Date and time
      December 04, 2013, 2:11PM
    • Capitalism is really great but we no longer have it. Capital is no longer allocated to its best use, we have central banks printing, we have over inflated stock prices, we have huge financial sectors followed by a crippling economy...if that's capitalism then I am Lenin reincarnate...

      Commenter
      Fat Plutocrat
      Location
      Sydney
      Date and time
      December 04, 2013, 3:16PM
  • ACR down another 2.5% groan...maybe they already have too much testosterone in Brazil? Should top up but gut says lower still.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 12:51PM
    • @BearShapedBull check out page 11, 3rd column of ACR's 2013 annual report.
      http://imagesignal.comsec.com.au/docserver/01454635.pdf?fileid=01454635&datedir=20131018&edt=MjAxMy0xMi0wNCsxNDozOTo1OSsxMjArMCtjb21zZWMrcmVkaXJlY3QrL2ltYWdlc2lnbmFsL2Vycm9ycGFnZXMvUERGVGltZW91dC5odG1sKy9pbWFnZXNpZ25hbC9lcnJvcnBhZ2VzL3BkZmRlbGF5ZWQuanNw

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 2:59PM
  • The GDP number is 0.1% below estimates and the AUD takes a huge tumble relative to if this same result had happened in other countries, and despite falling over 10% in the last few months, still not low enough for the idiots at the RBA.

    This country is such a joke.

    Commenter
    Mike
    Location
    Date and time
    December 04, 2013, 12:51PM
    • Not just the 0.1% drop but the fact that the drop indicates a decline in GDP is underway as mining investment falls away with little to replace it. So Australia is losing its attractiveness as a growth stock and the $A and the share market fall. I haven't heard any policies from the new gov't that will do anything to add to growth but instead might contract it by cutting spending. A mass of newly unemployed would suit their agenda to reduce wages and conditions and make the workforce more compliant for their business mates.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 1:56PM
  • Not sure if I am allowed to post links here but people buying or shorting gold stocks should look at this from zerohedge. 'Peak Gold' around the corner??? How much lower can the price go?

    http://www.zerohedge.com/news/2013-12-02/gold-tumbles-towards-marginal-production-costs

    (RSI divergence bottom at the moment -- needs to head above 1228 to confirm)

    Commenter
    jezza
    Location
    Date and time
    December 04, 2013, 12:22PM
    • Indeed. The price of the commodity is below the production cost of said commodity.
      The price is down only due to fear and selling, whilst quietly China is the biggest buyer on Market, p1$$ed as they should be at the U.S for risking default on its US$ holdings.

      I hold Gold stocks expecting there to be a bottom very soon and looking to re-buy for capital growth (granted to offset some of my losses).

      Commenter
      Joe the POM
      Location
      Geelong
      Date and time
      December 04, 2013, 1:07PM
  • "Australia's economic growth falling short"

    Dog days.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 12:18PM
    • Why is every day a dog day?

      Commenter
      punters gift
      Location
      Date and time
      December 04, 2013, 1:02PM
    • It is not all bad, generational theft is still thriving.

      Commenter
      Opinion Only
      Location
      Melbourne
      Date and time
      December 04, 2013, 1:03PM
  • I wonder how many new cars were purchased with novated leases. My guess would be the majority, and MMS will be a huge benefactor in the passage of time

    Commenter
    Captor
    Location
    Date and time
    December 04, 2013, 12:16PM
    • Their share price is not reflecting it at the moment. All this money flowing out of Aust is holding the whole market back. After the last annoc, they jumped but are falling back to around $12 is my target entry again.

      Commenter
      GeoPerth
      Location
      Date and time
      December 04, 2013, 12:48PM
    • The market is not so easily fooled. MMS share price is on the skids, again. Probably those who bid up the price a few days ago on the release of lease data are now seeking to get out at any price. If they thought that the company would benefit they wouldn't be selling at a loss. The last thing people nervous about their jobs will be doing is buying a car on a novated lease. It's very expensive to break the deal.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 12:50PM
    • Beneficiary?

      Don't forget the 30% of their business coming from charities 30% tax rort. That won't last long under this government.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 1:15PM
    • Captor, the problem is there is now and always will be some level of uncertainty. Before the announcement salary packaging companies would tell you how the FBT legislation / ability to use the statutory method would never be changed as one of the largest users of novated leases was government employees, nurses, etc (they wouldn't do such a thing!), so when Labour made the announcement is shook the industry to the core. There now will always the uncertainty that if Labor gets back into power they won't just try to remove the statutory method again, and who's to say the Lib's won't go back on their word - I mean politicians never go back on their promises right? ;)

      Commenter
      JiMb0
      Location
      Sydney
      Date and time
      December 04, 2013, 1:25PM
    • Mitch, any method of finance with a fixed interest rate will have some sort of break cost, this isn't at all unique to novated leases by any means and would be the same if you had a chattel mortgage, hire purchase, personal loan, etc.

      If people were looking at getting a new car regardless a novated lease would definitely be of benefit as they might as well get some tax benefit using the statutory method whilst it's available vs other methods of finance where they would get minimal tax benefit if any assuming they have no legitimate business use.

      What can make getting out of a novated lease more expensive is that many people go through a broker rather than directly through a financier. The broker capitalises their brokerage fee into the finance (usually 3-6% of the finance amount) which they don't tell you about, and this is generally why if you're paying a novated lease out early on in the term it seems like they're ripping you with massive exit fee's, but it's just that they've tacked on their brokerage fee and this is why effectively even after you've made a handful of monthly payments if you asked for a payout figure it will likely be more than the GST inclusive purchase price of the car (and certainly more than what you would have thought the ex GST finance amount was).

      In most cases the brokerage charged actually negates most if not all the tax benefit, but most don't see this as when you get a "comparison" or estimate from these companies they compare it salary packaged vs non-salary packaged but assume their brokerage in the finance costs on both sides of the comparison so it's not at all a fair comparison. Sneaky sneaky.

      Commenter
      JiMb0
      Location
      Sydney
      Date and time
      December 04, 2013, 2:29PM
  • wow DSH up 1.82% on debut,aint no freelancer here,but doesnt have as far to fall back once the dust settles.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 12:15PM
  • Overseas investors are pulling the market down because they think the gov debt stand off will mean something if we get to Dec 12 without an increase to the debt ceiling. Great week of cheap buys ahead then nice gains in time for christmas.

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    December 04, 2013, 12:13PM
  • I dread at the prospect of iron ore prices going down. It is the only thing that is holding up Aus economy and stock market. Retail down, tourism down, gold and coal down, manufacturing down. It is really scary. May be we should encourage Chinese to buy real estate,

    Commenter
    Ronn
    Location
    Sydney
    Date and time
    December 04, 2013, 12:07PM
    • And the real estate the Chinese really want is those iron ore mines and perhaps a few coal mines. No point owning the iron ore if you gave to buy something to smelt it with.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 12:22PM
    • They are buying. In cash and alot of it in Perth CBD. Why ???

      Commenter
      Sullys Foot is Down
      Location
      South Freo
      Date and time
      December 04, 2013, 12:24PM
    • Same in Sydney, they are outbidding in every auction. Maybe the well off in China are de-risking by buying property overseas. Mostly it is accommodation for their Children who studies in Aus, in the future it will open up Visa for their parents.

      Commenter
      Ronn
      Location
      Sydney
      Date and time
      December 04, 2013, 12:45PM
    • yes, and lock out future generations out of housing so all the speculators feel better?

      I on the other hand look forward to the crashing of the Australian economy which will create a level playing field for my kids.

      Commenter
      worried33
      Location
      Date and time
      December 04, 2013, 12:51PM
    • @Freo. Perth is being touted as a hot population growth area. Not to mention a wealth area. CBD land can only become more valuable.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 1:01PM
    • @Mitch, re your comment of Chinese buying land for iron ore mining. I frequently spend time in several African countries which have abundance of other resources, and that is exactly what the Chinese have done, and are doing there. Of course corruption in such countries allows this ( first hand experience). People here would be gob smacked at the Chinese presence in resource rich African nations. Hence they can pay anything to us, as we are only the short term plan for them with resources, till they have secured their long term objective. What they want from us is land for food security.

      Commenter
      Pierre
      Location
      Date and time
      December 04, 2013, 1:24PM
    • Why do you say retail is down??

      Commenter
      Irish Phil
      Location
      Date and time
      December 04, 2013, 3:27PM
  • Hold on to your hats people! Dick Smith about to go live...

    Then drop like a stone...

    Commenter
    WPHT
    Location
    Melbourne
    Date and time
    December 04, 2013, 11:55AM
  • It seems like banks have turned the corner, they should go up from now. There is resistance in CBA, WBC and NAB is already in green.

    Commenter
    Not Happy
    Location
    Brisbane
    Date and time
    December 04, 2013, 11:47AM
  • So who thinks that the Taper will cause a small correction?
    or
    Who thinks the Taper will Drop the Markets into Chaos?

    Commenter
    Styx
    Location
    Date and time
    December 04, 2013, 11:42AM
    • Surely even the gormless lot that run the funds and brokers here in Aus are not going to be taken in by the continuous daily switching of the headlines between tapering coming and steady as she goes, well i suspect they are, but you get my point.

      Commenter
      Peter
      Location
      3rd world country - 1st world lifestyle
      Date and time
      December 04, 2013, 12:08PM
    • chaos

      Commenter
      jezza
      Location
      Date and time
      December 04, 2013, 12:10PM
    • IMHO, the end of the financial world is very very close...back to 1939 is fast approaching.
      enjoy!.

      Commenter
      muppett from prahran
      Location
      @crying
      Date and time
      December 04, 2013, 1:22PM
    • LOL end of the world? No. Just a 30-40% drop in asset prices that money printing has failed to prop up. Drama queen much.

      New owners of your assets (eg me) will get a decent return.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 2:43PM
  • WRT/WDC interesting today , with WDC outperforming WRT , i'm assuming this is due to there being substantial shorts built up over the last few weeks?..

    Also nice price action yesterday , when WDC finally found some support (did someone know an announcement was due)
    I've used this as as opportunity to clean up some long positions (not from great levels but a small profit is better than how it looked earlier this week :)

    Commenter
    Chris
    Location
    Sydney
    Date and time
    December 04, 2013, 11:30AM
  • shizen housen the new chart, sorry ED.

    ED: You can't win 'em all... There had been some complaints about the the chart being too narrow.

    Commenter
    no banks .. no party!
    Location
    my two cents
    Date and time
    December 04, 2013, 11:28AM
    • Yea looks like a work in progress

      Commenter
      NSMR
      Location
      Date and time
      December 04, 2013, 11:54AM
    • my problem with it is it isnt going up fast enough.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      December 04, 2013, 12:21PM
    • if it aint broke...??

      Commenter
      no banks .. no party!
      Location
      Date and time
      December 04, 2013, 12:34PM
    • seems to have fixed my problem with it about 1.15pm,great stuff, not sure how ya did it but keep up the good work.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      December 04, 2013, 2:25PM
  • The Fed are not going to taper until March at the earliest. Pure and simple manipulation at work!

    Commenter
    Captor
    Location
    Date and time
    December 04, 2013, 11:23AM
  • The iron stocks, AGO, FMG, MGX are roaring out of the blocks today.

    Commenter
    GeoPerth
    Location
    Date and time
    December 04, 2013, 11:22AM
  • 11:03am: Fears the US Federal Reserve will reduce its massive stimulus program possibly in December are weighing on global markets ........ It seems like no-one has been listening to J Yellen and co. They have diluted the Bernanke criteria for tapering. Once it was the unemployment rate. Now they will be also looking at the GDP. In other words they will be able to cherry pick as to why taper will be delayed. The recent Black Friday sales data was below expectations. The patchy recovery helps to show that there will be no rush to taper.

    Commenter
    bearly gruntled
    Location
    land of hot air
    Date and time
    December 04, 2013, 11:19AM
  • The market isn't really down this week, people are just taking profits to losses.

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    December 04, 2013, 11:18AM
  • The FTSE fell heavily last night, including RIO and BHP:

    http://www.marketwatch.com/story/mining-firms-bruise-ftse-100-hsbc-off-after-downgrade-2013-12-03

    Yet, this morning, both these big buys are up about 0.5%. I must admit, I don't fully understand, but is there opportunity for arbitrage between the two markets?

    Commenter
    Bud Fox
    Location
    Date and time
    December 04, 2013, 11:02AM
  • Optical cable jb hifi $40. Ebay $2.50.

    Australian shoppers still haven't completely woken up.

    Oh and with gst 2.75. Big deal.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 11:02AM
    • Yes Al, we have seen your jb hifi cable rants already...

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 11:17AM
    • You are forgetting the $20 administration and handling fee.

      Commenter
      IanD
      Location
      Date and time
      December 04, 2013, 11:24AM
    • bargain

      Commenter
      Major Minor
      Location
      ASX
      Date and time
      December 04, 2013, 11:29AM
    • We dont need a middle man to organise the purchase, distribution, and storage of our goods, we just purchase them direct cutting him out altogether and using the money we save to invest in worldwide postal systems.

      Commenter
      GStamos
      Location
      Date and time
      December 04, 2013, 11:34AM
    • @Allan - links please?

      Commenter
      Irish Phil
      Location
      Date and time
      December 04, 2013, 12:13PM
    • As I understand, overseas mail is delivered here by AusPost for free. This adds to the problem. When someone buys from Amazon there is no gst, Amazon dodges tax, people lose their jobs here, in some cases AusPost has to deliver for free. As well Amazon is trying to gain a worldwide monopoly. Amazon is, IMO, a rogue, one of the many ugly outcomes of the IT revolution.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 12:15PM
    • Now $2.09 on ebay inc postage

      http://www.ebay.com.au/itm/6FT-FT-OPTICAL-FIBER-OPTIC-TOSLINK-DIGITAL-AUDIO-CABLE-/110518816178?pt=AU_Television_Accessories&hash=item19bb6f4db2

      jb hifi $44

      http://www.jbhifionline.com.au/home%20theatre/tv-accessories/connexia-x05235-2m-toslink-cable/240331

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 12:27PM
  • 10:46am: With most still talking about the vanilla RBA statement yesterday, I feel the ‘hard talk’ strategy that the RBA is currently using to weaken the AUD is breaking down, says IG's Evan Lucas: ....... Glen Stevens must be feeling that he has been in pig heaven. Imagine, have a simple spray and it brings down the AUD, easy.

    Commenter
    bearly gruntled
    Location
    land of hot air
    Date and time
    December 04, 2013, 11:00AM
  • What is happening with SBM. It is bucking the gold trend this morning. Up 4% and not touching the big buy order.

    Commenter
    GeoPerth
    Location
    Date and time
    December 04, 2013, 10:57AM
    • Also has me intrigued. It has to be a consequence (direct or indirect) of the big buy order. With comparison to its peers SBM should be at least 5% lower. PS I'm with Etrade and cant see particular oders - just the aggregate. It would be useful.

      Commenter
      Yin or yang
      Location
      Date and time
      December 04, 2013, 11:13AM
    • E-Trade Pro has the individual orders and it is very useful.

      Commenter
      Looking for Value
      Location
      Date and time
      December 04, 2013, 11:33AM
  • Ed, why does my Chrome browser show the latest comment at 9:52Am by Bud Fox but 55 comments at the top. I have refreshed and no update. Is there some dodgy code you guys need to address?

    ED: Works fine for me across all major browsers. Keep an eye on it and let us know over the following days if you have any issues.

    Commenter
    Joe
    Location
    Work
    Date and time
    December 04, 2013, 10:56AM
    • sort comment by the oldest, then by the latest. Should bring everything back up.

      Commenter
      got brain
      Location
      Date and time
      December 04, 2013, 11:18AM
    • You need to refresh a few times.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 11:26AM
    • Hey Joe, You need to sort comments from oldest to latest and back again. The new comments then all appear. This is really annoying - don't know why they can't just fix it.

      Commenter
      confused
      Location
      Syd
      Date and time
      December 04, 2013, 11:28AM
    • Yep, but still can't filter out Allan

      Commenter
      Panhandler
      Location
      Date and time
      December 04, 2013, 1:08PM
  • 10:46, Evan Lucas. Have to agree with this article especially "its ‘hard talk’ is running out of puff faster than expected."
    Who in the world cares about the A$, except NZ and they don't really count, they manage to bleed us with all the no-hopers they send over here to get the dole. If the RBA and Stevens think that any of the big players listen to their ramblings they are deluded. Even the threat of intervention is facile, the money will disappear into a black hole, the dollar will find its own level in the market and we will be worse off than before. I am accused of not understanding 'big monetary policy' but even i can read a chart.

    Commenter
    Peter
    Location
    3rd world country - 1st world lifestyle
    Date and time
    December 04, 2013, 10:54AM
  • WBC low of 31.97 today is the new low! Can't go lower! Will only go higher! Promise!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 10:53AM
    • chumlee purchased shares in one of the nations finest companies....he'll lol'ing all the way to the bank in 2014 with WBC..what's the problem with that?

      Commenter
      no banks .. no party!
      Location
      Date and time
      December 04, 2013, 11:13AM
    • IMO, further to go but I agree not today.

      Commenter
      Yin or yang
      Location
      Date and time
      December 04, 2013, 11:16AM
    • Oh dear,my low has been blown away by a massive 0.5 of one percent, by a few nervous nellies who should've known better.
      Does that mean my strategy is all wrong?
      Of course not.

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 11:43AM
    • You can't pick bottoms. Simple.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 11:55AM
    • As per previous. For me BUY WBC on very decent dip and NEVER sell. An excellent 15 years !

      Commenter
      Pierre
      Location
      Date and time
      December 04, 2013, 12:36PM
    • The last 15 years were supported by massive credit expansion leading to a 5x blow out in household debt. You won't be getting that again.

      Australian banks are being heavily shorted by overseas hedge funds betting on a housing bust.

      Looks like a winner to me.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 1:17PM
    • Alan, well as always, only time will reveal who has made the best position !
      I believe it will be me

      Commenter
      Pierre
      Location
      Date and time
      December 04, 2013, 1:28PM
    • I quite like Allan's comments, wouldn't want to filter them out, he's a bit like the old inappropriate Uncle at a wedding.

      Sat quietly in the corner coming out with old legacy scandals about the Bride's parents when they were younger.

      Way too cool to shut up.

      Commenter
      Joe
      Location
      Work
      Date and time
      December 04, 2013, 2:25PM
  • Gotta laugh at the pollyannas who think they can accurately predict short term price movements. Share price daily movements are completely random.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 10:47AM
    • WBC now $32.22 and climbing,,,,don't you just hate it.

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 11:02AM
    • Oh look it's down again. You said it could only go up.

      Short at 32.92.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 11:19AM
  • All bank shorts well in the money inc BOQ.

    Kiss of death. He he....

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 10:41AM
  • Pollyannas who paid 2.60 for Freelancer must be kicking themselves.

    Now $1. It's not worth 50c

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 10:37AM
    • Amazing, I actually agree with you on this one,,,,there is always hope...

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 10:59AM
    • As shareholders in FLN will soon find out, when the share price crashes to 5 cents.

      Commenter
      Kingly
      Location
      Oz
      Date and time
      December 04, 2013, 11:29AM
  • FRR boostd 35% by acquisition of cloud subscription software provider Newlease...melbourne based...is this the future of tech startup... clouds and blue skies.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 10:36AM
    • until you discover there is a problem connecting to the cloud and your company is dead in the water and cant access anything. at least with infrastructure on site your IT people can do something. instead you sit twiddling your thumbs waiting for someone in the phillipines to "look into it".

      Commenter
      smilingjack
      Location
      Date and time
      December 04, 2013, 10:41AM
    • And because of the lack of an NBN servicing wireless towers the bandwidth is saturated.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 11:00AM
  • When will DSH start trading ?

    ED: At midday

    Commenter
    Peter
    Location
    3rd world country - 1st world lifestyle
    Date and time
    December 04, 2013, 10:36AM
  • WHC had a big day yesterday, seems like Maule's Creek is in the sight of a few Joint Venture partners. Takeover possibility maybe?

    Commenter
    Happy Jack
    Location
    Date and time
    December 04, 2013, 10:28AM
  • CAJ got a reversing ticket..been in freefall
    i was thinking of buying in around 0.30...but growth prospects are all but taken up already,maybe takeover target by larger healthcare company? last 2 days 6 million,3 milion and already 1.7 million in first 1/2 hr.
    SLX looking positive for new tech..aussie start up finally coming to fruition.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 10:27AM
  • Whats the odds of NCM going below 7 today. Pretty good i would think. Cheers me up no end watching them when i am having a down day on the ASX.

    Commenter
    Peter
    Location
    3rd world country - 1st world lifestyle
    Date and time
    December 04, 2013, 10:20AM
    • Cheers mate .. I'm sticking with this white knuckle ride.

      Commenter
      Joe the POM
      Location
      Geelong
      Date and time
      December 04, 2013, 10:41AM
    • Sorry for your loss Joe, and good luck on the rapids (more to come i think), i do not enjoy seeing other 'real' investors lose money, its just my joy at dodging a bullet. I have been in NCM 3 times for 1 nice win and two painful losses, this time i got out early. However i am angry at the management that seems to have turned a $40 per share company to a $7 per share company in a little over 1 year. It beggars belief.

      Commenter
      Peter
      Location
      3rd world country - 1st world lifestyle
      Date and time
      December 04, 2013, 11:08AM
  • JB HiFi dropping like a rock. Everything they sell is 30-70% cheaper on ebay. Same goes for Dick Smith.

    Short $$$$$

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 10:20AM
    • Cheaper for now. The GST on <$1000 will be changed to suit the owners of government. Big business.

      Commenter
      JohnBB
      Location
      Date and time
      December 04, 2013, 10:40AM
    • true. but at dick smith I can take back my dodgy bit of electronics ( external hdd's media players digital TV etc ) when it fails ( and they inevitably do ) and get an instant on the spot replacement. something HN or JB wont do. I like DSE.

      Commenter
      smilingjack
      Location
      Date and time
      December 04, 2013, 10:45AM
    • I didn't know we can buy a macbook pro for 30% discount on ebay. Just how to throw it out there.

      Commenter
      got brain
      Location
      Date and time
      December 04, 2013, 10:47AM
    • "when it fails ( and they inevitably do ) "

      Nope. MTBF is higher than its ever been and drives rarely fail within the warranty period.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 10:55AM
    • Of course you can: http://www.ebay.com.au/itm/Apple-Macbook-Pro-13-Core-i5-Solid-Unibody-8GB-500GB-2-/221329981725

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 10:57AM
    • that's used goods though, can't compare with new stuff from the box.

      Either way I know what you meant.

      Commenter
      got brain
      Location
      Date and time
      December 04, 2013, 11:12AM
    • And this:

      http://appleinsider.com/articles/13/02/26/apple-using-ebay-to-blow-through-13-macbook-pros-for-999-dozens-of-refurbished-ipads

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 11:22AM
    • both my western digital media player and external hdd ( cable from hdd to usb ) failed within 6 months.flv file corrupted the device - known cause no fix. hdd cable - factory only not usb to usb. hdd was useless.
      I always get an extended warranty for a few bucks and everything I have ever bought has failed. Im not complaining - Its great customer service and you always get a newer model.

      Commenter
      smilingjack
      Location
      Date and time
      December 04, 2013, 12:39PM
    • "everything I have ever bought has failed"

      Oh yeah... over 500 drives in over 100 servers total across my customers, 2 failures in 5 years.

      MTBF average is now over 100 years.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 1:22PM
  • detroit has been given approval to proceed with bankruptcy today.
    watch for many many more USA cities to do the same. many already have with new york looking likely to follow suit.
    millions of retirees in the USA have seen and will see their entire pensions wiped out. they are last on the list of creditors.
    should go down a treat. your house is worth half what you owe on it. your unemployed and the pension youve been contributing to for 30 years doesnt exist.
    people in australia still believe their super is safe.

    Commenter
    smilingjack
    Location
    Date and time
    December 04, 2013, 10:17AM
    • rates and taxes aren't a contribution to your future pension!

      Commenter
      Gocats23
      Location
      Date and time
      December 04, 2013, 10:51AM
    • If they start filing several things are assured. Tapering won't happen and in fact would be increased which would define a golden moment in history.

      Commenter
      nolongerconfused
      Location
      Date and time
      December 04, 2013, 11:43AM
    • I didnt say they were. yank workers took a pay and conditions cut 30 years ago in lieu of a pension. they have been right royally shafted. I can absolutely guarantee you in 20 years time the rules for super wont look remotely like they do today. there will be a massive tax on them - if they still exist and your super fund didnt get obliterated in the great financial catastrophe of 20XX.

      Commenter
      smilingjack
      Location
      Date and time
      December 04, 2013, 12:34PM
  • So is this start of the "correction we have to have" or will that be early in 2014.?

    Commenter
    DJ77
    Location
    Sydney
    Date and time
    December 04, 2013, 10:16AM
  • Chumlee on WBC yesterday: "They are still holding nicely above the low of $32.13 on 13/11 which I called as the low. You expected them to be much lower by now. Watch them go higher every week from here."

    Oh dear.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    December 04, 2013, 10:14AM
    • I guess he could always buy some more at a lower price!

      Commenter
      Easy Solution
      Location
      Date and time
      December 04, 2013, 10:25AM
    • Wow,that was quick off the mark Al.
      A little premature perhaps. A few nervous nellies will soon be swamped by buyers.
      I am just so happy I didn't follow your lead and buy SBM for a 20% decline .

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 10:27AM
    • What's your beef with NCM holders? You gave your usual kiss of death going long yesterday. Will play out like your SBM long. Another fail for Allan.

      Commenter
      Contrarian
      Location
      Date and time
      December 04, 2013, 10:32AM
    • I am a WBC holder too and I am not the slightest bit worried because they will bounce back, but my question to you is why do you get delighted at other peoples misfortune?

      Commenter
      ajay
      Location
      Date and time
      December 04, 2013, 10:38AM
    • he he... like QAN I suppose. DOH! Long 1.15.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 10:39AM
    • @ Chumlee $32.13 at 10.34am. One thing you can take satisfaction from is you won't have to help Allan get the cork back in the champagne bottle because he is an expert by now. You are correct about SBM, what a disaster story they are!

      Commenter
      Captor
      Location
      Date and time
      December 04, 2013, 10:48AM
    • Short at 32.92. Correction ahead. What cork? He he...

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 11:00AM
    • Allan seems to have got increasingly bitter over the last 6 months or so. He is open enough to call his shorts most of the time beforehand, but as a shorter i suspect he is in a bad place right now. C'mon Allan lighten up and at least put a bit of humour into your posts.

      Commenter
      Peter
      Location
      3rd world country - 1st world lifestyle
      Date and time
      December 04, 2013, 11:11AM
    • Even jb hifi short is in the money. They will get whacked by a price war with Dick Smith.

      Laughing! he he...

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 11:46AM
  • I'm so glad I'm not holding any gold stocks. The alarm goes off and I awake to the reality. Small in my case but hurting nevertheless. Seems an overreaction to the gold price especially for hedged producers but you cant fight the 'trend'.

    Commenter
    Yin or yang
    Location
    Date and time
    December 04, 2013, 10:14AM
  • Another wipeout coming up today, told you so!

    Commenter
    Happy Jack
    Location
    Date and time
    December 04, 2013, 10:10AM
  • I am amazed at the strength of FMG. In-spite of Canadian Tek dumping 100M shares few weeks ago it is going strength to strength. Good on you Twiggy.

    Commenter
    Ronn
    Location
    Sydney
    Date and time
    December 04, 2013, 10:09AM
    • You mean well done Nev!

      Commenter
      Happy Jack
      Location
      Date and time
      December 04, 2013, 10:11AM
    • Blackrock (world's largest investment manager) don't think so.

      Commenter
      Pig Iron Slob
      Location
      Date and time
      December 04, 2013, 10:18AM
  • Nice to see the ACCC still doesn't like its job!

    Fuel Docket or not Fuel Docket ... That IS the question (thank must go to one Will I AM Shakespeare for the cultural theft).

    Commenter
    Joe the POM
    Location
    Geelong
    Date and time
    December 04, 2013, 10:09AM
  • RMD , a single trade went thru for 1000000 @ 5.338,crikey

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 10:04AM
    • That can be seen either as a sign of confidence by the purchaser (institution x) or a sign of the opposite from the seller (institution y). Both, I suspect. I'm going to buy more RMD if it goes below $5.

      Commenter
      Yin or yang
      Location
      Date and time
      December 04, 2013, 10:27AM
    • true dat

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      December 04, 2013, 12:11PM
  • "what the RBA believes is a still overvalued Australian dollar"

    The AUD is worth whatever the market says its worth. End of story.

    Commenter
    Edward
    Location
    Date and time
    December 04, 2013, 10:02AM
    • Stagflation

      Commenter
      GStamos
      Location
      Date and time
      December 04, 2013, 10:14AM
    • Well done Edward, you certainly are on top of things and have a keen eye of what is going on in the world :)

      Commenter
      Opinion Only
      Location
      Melbourne
      Date and time
      December 04, 2013, 12:49PM
  • ORL are looking really undervalued, either someone knows something not announced or everyone is playing wait and see on the GAP and Brooks Bros deals. Either way adding a little more to this as i think they will show good next year

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    December 04, 2013, 9:55AM
    • I agree,holding them will pay off I think.

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 10:14AM
    • ORL, the NCM of the retail world. The market has really set its mind against them. I shall refrain from topping up my very small holding as the Mitch effect says that any purchase I make will only drive the price down further.
      In their most recent announcement they mentioned a decline in net earnings due to margin loss from discounting to achieve sales. That's the curse of retailing in the current climate. But until people shift into spending mode that will continue. They probably stand to benefit from Christmas spending.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 10:32AM
    • Trading at 4.15 even if they cut the div in 2 for the next year its still a 6% yeild and i get to keep trying to catch a knife in the mean time.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 10:38AM
    • ORL clawing its way back after the panic sellers or bots or both forced it down to just shy of $4.00 Might have had something to do with me putting in an unfilled buy order at $4.02. The Mitch effect. Let's see if it can continue to improve or if those with an urge to sell out force it back down when the price gets a little higher and reduces their losses.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 11:33AM
    • oh so its your fault eh mitch, maybe we need to ask Al nicely to short it so we see some big price gains. The counter mitch effect

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 12:03PM
    • these guys sent me unsolicited spam last week for GAP, they must be desperate!

      Commenter
      worried33
      Location
      Date and time
      December 04, 2013, 12:54PM
  • Commodity prices should lead some positive tilt, but the highlight will be DSE debut,good luck to those involved...timing a little neg but we'll see.
    expect 5220 ^ 5280 ranging

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    December 04, 2013, 9:54AM
  • Re: Dick Smith's listing -

    "We are going to be a growth stock,'' Mr Abboud said.

    With all due respect to Mr Abboud, what exactly is their competitive advantage? Price? Service? Product Range? Location of stores? Sorry.

    Even their colours remind customers of their rival, JB Hifi.

    I can't wait to get on board, will be buying today!

    Commenter
    Bud Fox
    Location
    Date and time
    December 04, 2013, 9:52AM
    • Closing price prediction... $1.50??

      Commenter
      Gocats23
      Location
      Date and time
      December 04, 2013, 9:58AM
    • Why buy today? wait till next year and buy the whole thing for 20M again. Theres only 500M of Aussie Super lost in this one.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 9:59AM
    • Be wary of spin doctors and investment bankers. They are more sophisticated than one can imagine.

      Commenter
      Ronn
      Location
      Sydney
      Date and time
      December 04, 2013, 10:04AM
    • Another retail disaster. If they didn't learn from the Myer experience they will never learn.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 10:11AM
    • I share your sentiment.

      Dick Smiths is a loss making enterprise.

      Low margin on its stock.

      Low stock turns meaning high inventory cost.

      They are the Radio Shack of today and will lose money for ALL its investors.

      Commenter
      Joe the POM
      Location
      Geelong
      Date and time
      December 04, 2013, 10:11AM
    • I've been in a Dick Smith Store last Sunday.....nothing there expect the usual that one finds in JB Hifi and the like...seen one, seen all. I wouldn't get into it at any price...where's the value?

      Commenter
      Market Guru
      Location
      Sydney
      Date and time
      December 04, 2013, 10:12AM
    • Either Woolies sold them too cheap,or share buyers now are paying too much.

      Commenter
      Chumlee
      Location
      Date and time
      December 04, 2013, 10:12AM
    • I won't be buying but I expect them to try to increase market share. JBH is probably going to be undercut in a price war, good for consumers.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 11:07AM
  • Those expecting a Santa Claus rally in the US are being wrong footed by the Big Boyz.

    Commenter
    hammer
    Location
    Date and time
    December 04, 2013, 9:43AM
    • and your call is?

      Commenter
      nail
      Location
      Date and time
      December 04, 2013, 9:53AM
    • It Ain't over till it's over, Santa Claus is coming to town!

      Commenter
      Lenny Kravitz
      Location
      Date and time
      December 04, 2013, 11:40AM
  • http://www.smh.com.au/nsw/bleak-employment-prospects-for-young-australians-20131203-2yo79.html

    Boom time ahead.

    Commenter
    got brain
    Location
    Date and time
    December 04, 2013, 9:35AM
    • Dog days.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      December 04, 2013, 9:51AM
    • What, jobs should be tumbling from the sky now that we have gotten rid of that bad, bad Labor gov't. Perhaps the solution isn't that simple and now will only get worse as the Budget contracts and tax concessions for small business are withdrawn.
      http://www.financialstandard.com.au/news/view/36613047

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 9:59AM
    • I think you are right mitch it will get worse before it gets better, but under labor it was just worse.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      December 04, 2013, 10:06AM
    • Cannot remember the last time a Labor Government created a "real" job! Pink bats, school halls etc don't count!

      Commenter
      Happy Jack
      Location
      Date and time
      December 04, 2013, 10:18AM
    • Hey happy jack, they created one for that pomme turkey adviser to Gillard, and look how that worked out.

      Commenter
      Peter
      Location
      3rd world country - 1st world lifestyle
      Date and time
      December 04, 2013, 10:43AM
    • @Happy Jack, pink batts & school halls created lasting benefits. As a bonus, and what was the real purpose of the expenditure, those and other programs pushed a lot of cash into the economy that kept us going during the worst and the wash-up of the GFC. Your Liberal heroes would have stopped spending for fear of going into debt. The economy would have contracted severely, hundreds of thousands of jobs would have been lost and we would have ended up with a diminished economy and still a huge pile of debt from the increasing welfare bill and the loss of taxes from wages and profits. Sometimes "real" jobs aren't the main objective, sometimes it can be any jobs just to keep things going until conditions improve. But now we have a contractionary gov't so that's not going to happen.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 10:58AM
    • @Mitch, both programs were a disaster, you know that. Please have some balance in your argument.

      ps - I support the Greens

      Commenter
      Happy Jack
      Location
      Date and time
      December 04, 2013, 11:18AM
    • Mitch,

      Pink bats and school halls gave us poor implementation, deaths, flase claims for funds, useless and in some cases totally unwanted schoold buildings at grossly inflated prices.

      Waste of money.

      Take your obviously biased politico comments elsewhere.

      Commenter
      More Political
      Location
      Blabber
      Date and time
      December 04, 2013, 11:34AM
    • Pink batts have reduced recipients heating and cooling bills. School Libraries have assisted education. These projects created many jobs during the GFC. The problem was the Contractors were, in many cases, charlatans or thieves. Eg, claims for pink batt installation were phoney. I am aware that there are a lot of batt millionaires who have fled Aus for their homelands. School Halls, big Contractors here padded their tenders eg by adding costs for safe working and just plain padding. My argument has always been that public servants shouldn't police Contractors.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 11:41AM
    • @Happy Jack, yes both programs were a disaster of sorts. But the objective was to get as much cash out into the economy as quickly as possible to support jobs. That's why the $900 cheques were issued at the same time. The pink batts and school halls programs were rushed out without the normal planning and vetting processes that would have taken place. Those processes would have only slowed the stimulus down. Those programs still achieved their objectives and were a little more dignified than flying low over suburbia shovelling out cash. The school halls will still be there for many years and those tens of thousands of people with pink batts in their rooves (whose house didn't burn down) will be cooler for many summers to come and warmer in just as many winters without adding to their electricity bills. As a greens supporter you would appreciate the environmental benefits of that. I put 5kw of solar panels on my roof as part of the deal. ROI is 17%pa.

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 11:45AM
    • that kid in the photo could do himself a favour by getting a decent haircut first. would you hire that?

      Commenter
      green sheep
      Location
      shear the wool
      Date and time
      December 04, 2013, 11:59AM
    • @bearlygruntled Glad to see that someone else can appreciate the basic points of Keynesian economics. The lack of knowledge by some is either willful ignorance or a reflection of a poor education system. For the Liberal fans on here who appreciate that Wikipedia is a valid reference tool, here is a useful link:http://en.wikipedia.org/wiki/Keynesian_economics

      Commenter
      mitch of ACT
      Location
      Date and time
      December 04, 2013, 12:02PM
    • @Smiling Jack. "ps - I support the Greens". A red-neck masquerading as a green-neck? Gives new meaning to the watermelon metaphor. So what is a real job? When Leightons gets $3 billion govt contract for a freeway does it create real jobs?

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      December 04, 2013, 12:28PM
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