Avoid Getting It Wrong This Reporting Season
Market reaction to full year or interim earnings releases is hardly predictable as is evident this reporting season. Stocks with fairly solid earnings have been aggressively sold off, while the market has rewarded other companies revealing eye-opening losses. Indeed, irrational price movements surrounding earnings season call into question the theory that share prices reflect company…
Will Junior Gold Miners Rally or Bust?
Contrarian investors everywhere often look to 52 Week Rolling Low Lists for buying opportunities. This is a strategy fraught with considerable risk, as even if the market sentiment is wrong about a particular stock or sector, buying into a company on a downward trajectory can lead to an investment that keeps falling and falling. Early…
Aussie property slowdown has just begun
These days it’s cheaper to buy a home in the playground of New York’s rich and famous, The Hamptons, than it is to buy in most Australian capital cities. Home prices in New York’s beachside retreat fell 13% last year, and are expected to tank again this year. Today, the median sale price in The…
Opportunities galore in Aussie shale gas boom
Australia has ambitious plans to unseat Qatar as the world’s leading supplier of Liquefied Natural Gas (LNG) but internationally renowned oil and gas consulting firm Wood Mackenzie warns we Aussies should be looking in the rear view mirror. The Yanks are coming. At the dawn of the 21st Century natural gas prices in the US…
6 Stocks On Takeover Alert
One way to generate capital growth in this market is to own shares in listed takeover targets. Suitors generally pay a handsome share price premium for an acquisition. If the premium is big enough, the target’s board may recommend the deal. Companies with good assets, earnings, prospects and manageable debt appeal as potential takeover targets….
Stocks to watch at noon on Monday
Stocks to watch on the Australian stock exchange at noon on Monday: ADD – ARDENT LEISURE GROUP – down one cent, at $1.035 Queensland’s embattled tourism industry can ill afford a transport strike, says Premier Anna Bligh. BOW – BOW ENERGY LTD – up 1.5 cents, or 1.03 per cent, at $1.475 BOW says it…
The Tangled Web of the Australian Housing Bubble
Oh what a tangled web we weave,When first we practice to deceive. Scottish poet Sir Walter Scott penned those lines in the nineteenth century, but the essence of his words applies to much of what happened in the Great Financial Crisis, as well as to things yet unseen. Perhaps you think the word “deceive” is…
Bullish Signs For Oil And Oil Stocks
Averaging $96 so far this summer, crude oil certainly doesn’t feel cheap. Nevertheless, its technicals are looking increasingly bullish. After recently bouncing out of a major correction, oil appears to be embarking on a new bull-market upleg. If one is indeed brewing, speculators and investors alike ought to capitalize on this excellent buying opportunity in…
Will the property bubble burst or simply deflate?
As Aussie housing prices have risen dramatically in recent years and LVRs have skyrocketed, leading economists and investment advisers have weighed in on the issue of whether Australia is experiencing a “housing bubble” and, if so, whether it will eventually “pop” or quietly deflate. Today we summarise several perspectives: 1. Jeremy Grantham, Chairman, GMO Australians…
Commodities risk an extension of the stockmarket
Commodities prices have been exceptionally volatile in recent weeks, with big daily rallies and plunges intermingled. Seemingly without rhyme or reason, commodities surge one day as traders crave riskier bets but then fall the next as they flee risk. While this commodities risk trade often looks capricious and schizophrenic, it actually has a logical and…
