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Australian Share Market Update, June 24, 2010

admin — Thu, 24 Jun 2010 08:08:40 +0000

What a day, the Mini Movers Van gets called to the Lodge and we get a new PM, oh and by the way, the All Ordinaries Index fell 5.3 points to close 0.1% lower at 4504.1.

Macquarie Group (MQG) ended the day 4.7% lower at $40.65 after stating uncertain market conditions are adversely impacting certain business units. MQG did not issue any FY11 profit guidance.

Transfield Services Limited (TSE) gained 5.6% to close at $3.36 after reaffirming its FY11 profit guidance for net profit after tax to be flat to modest against the prior financial year.

Major stock rises:

Transfield Services Limited (TSE) $3.36 +5.66%
Downer EDI (DOW) $4.20 +5.53%
Challenger Financial Services (CGF) $3.45 +5.18%
UGL Limited (UGL) $14.13 +3.90%
Rio Tinto Limited (RIO) $71.73 +1.69%

Major stock falls:

DUET Group (DUE) $1.65 -7.54%
Macquarie Group (MQG) $40.65 -4.73%
Caltex Australia Limited (CTX) $10.35 -4.52%
Stockland Group (SGP) $3.78 -3.82%
Brambles Limited (BXB) $5.60 -2.95%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

Please Note:

This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances. This information is provided for persons in Australia only and is not provided for the use of any person who is in any other country.

Australian Share Market Update, June 23rd, 2010

admin — Wed, 23 Jun 2010 07:53:35 +0000

On a day when we would all have been better served playing golf, the All Ordinaries Index fell 71.9 points to close 1.6% lower at 4509.4.

Perpetual Ltd (PPT) ended the day 1.5% lower at $29.93 after announcing the resignation of Managing director, David Deverall. Mr Deverall will stay on until a new CEO is appointed or until 31 March 2011.

Seven Group Holdings (SVW) ended the day 2.9% lower to close at $5.98 after announcing plans to invest $US250m as a cornerstone investor in the IPO of Agricultural Bank of China as part of a broad strategy to underpin the development of the group’s WesTrac business in China.

Major stock rises:

Telecom Corporation of New Zealand (TEL) $1.57 +1.95%
Amcor Limited (AMC) $6.47 +1.25%
Ansell Limited (ANN) $13.43 +0.98%
Coca-Cola Amatil Limited (CCL) $11.73 +0.95%
Telstra Corporation Limited (TLS) $3.29 +0.92%

Major stock falls:

Incitec Pivot Limited (IPL) $2.88 -5.26%
Iluka Resources Limited (ILU) $4.69 -4.87%
Challenger Financial Services (CGF) $3.28 -4.65%
Boral Limited (BLD) $4.96 -3.69%
Nufarm Limited (NUF) $5.50 -3.51%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update, June 22nd, 2010

admin — Tue, 22 Jun 2010 19:47:20 +0000

An uninspiring day after a negative lead from overseas saw the All Ordinaries Index fell 51.4 points to close 1.1% lower at 4581.3.

Elders Limited (ELD) ended the day 46.3% lower at $0.44 after substantially downgrading its FY10 profit forecast. ELD now expects to report an underlying net after tax loss of between $8-$14m, versus previous expectations of a profit of $55.7m. ELD has attributed the weaker than expected performance to a fundamental shift in the farm supply markets towards low priced generic products.

Major stock rises:

APA Group (APA) $3.78 +1.61%
Commonwealth Property Office Fund (CPA) $1.00 +1.52%
Goodman Group (GMG) $0.71 +1.43%
GPT Group (GPT) $2.94 +1.03%
Myer Holdings Limited (MYR) $3.28 +0.92%

Major stock falls:

Elders Limited (ELD) $0.44 -46.34%
Nufarm Limited (NUF) $5.70 -5.00%
Transfield Services Limited (TSE) $3.20 -4.76%
Downer EDI (DOW) $4.05 -4.48%
Perpetual Ltd (PPT) $30.40 -4.46%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update June 21st, 2010

admin — Mon, 21 Jun 2010 07:36:10 +0000

A good start to the week, although tempered by news of the missing mining executives, we saw the All Ordinaries Index gain 58.6 points to end the day 1.3% higher at 4632.7.

Telstra Corporation Limited (TLS) gained 3.4% to close at $3.34 after signing an $11bn non-binding Financial Heads of Agreement with NBN Co to participate in the rollout of the National Broadband Network.

Fortescue Metals Group Ltd (FMG) gained 4.6% to close at $4.57 after signing an agreement with the Chinese engineering group China Gezhouba pursuant to FMG’s expansion planning for 95 million tonnes per annum of capacity within its Chichester Hub.

Major stock rises:

Fortescue Metals Group Ltd (FMG) $4.57 +4.58%
BlueScope Steel Limited (BSL) $2.40 +4.35%
OneSteel Ltd (OST) $3.33 +4.06%
Telstra Corporation Limited (TLS) $3.34 +3.41%
CFS Retail Property Trust (CFX) $1.99 +2.84%

Major stock falls:

Transfield Services Limited (TSE) $3.36 -2.61%
Downer EDI (DOW) $4.24 -2.30%
Primary Health Care Limited (PRY) $3.85 -1.79%
News Corporation (NWS) $18.29 -1.67%
Foster’s Group Limited (FGL) $5.76 -0.86%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update, June 18, 2010

admin — Fri, 18 Jun 2010 08:20:25 +0000

On a day when the CEO of BP was grilled by the US Congress and the CEO of David Jones resigned, the All Ordinaries Index gained 27.1 points to end the day 0.6% higher at 4574.1.

David Jones Limited (DJS) ended the day 0.4% lower to close at $4.49 following the unexpected resignation of Chief Executive Officer, Mark McInnes. Mr McInnes has admitted to behaving “in a manner unbecoming of a chief executive to a female staff member” at recent Company functions. The board of DJS has appointed Paul Zahra as the new CEO of the Company, effective immediately.

Major stock rises:

Downer EDI (DOW) $4.34 +4.58%
Origin Energy (ORG) $15.84 +2.26%
Telstra Corporation Limited (TLS) $3.23 +2.22%
Mirvac Group (MGR) $1.41 +2.17%
Lihir Gold Limited (LGL) $4.35 +2.11%

Major stock falls:

Brambles Limited (BXB) $5.89 -5.15%
ConnectEast Group (CEU) $0.39 -3.66%
WorleyParsons Limited (WOR) $22.36 -3.25%
Metcash Limited (MTS) $4.15 -3.04%
Caltex Australia Limited (CTX) $10.85 -2.95%.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share market Update, June 17th 2010

admin — Thu, 17 Jun 2010 09:02:54 +0000

A fairly uninspiring day with little overseas lead saw the All Ordinaries Index end the day 0.5% lower to close at 4547.

UGL Limited (UGL) ended the day unchanged at $13.85 after announcing it has secured more than $280m in new works and project extensions with a range of blue chip customers in the resources sector. UGL also reaffirmed its previous profit guidance.

Leighton Holdings Limited (LEI) gained 2.2% to close at $33.01 after securing a $1.1bn, 6-year contract extension for the expansion of the mining services at the MSJ coal mine in Indonesia.

Major stock rises:

Asciano Group (AIO) $1.66 +2.46%
Leighton Holdings Limited (LEI) $33.01 +2.17%
Nufarm Limited (NUF) $6.00 +1.69%
Newcrest Mining Limited (NCM) $34.64 +1.41%
Lihir Gold Limited (LGL) $4.26 +1.19%

Major stock falls:

AWE Limited (AWE) $2.07 -2.82%
Aristocrat Leisure Limited (ALL) $3.97 -2.70%
WorleyParsons Limited (WOR) $23.11 -2.49%
Billabong International Limited (BBG) $9.45 -2.48%
Lend Lease Group (LLC) $7.67 -2.42%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update June 16th, 2010

admin — Wed, 16 Jun 2010 07:57:03 +0000

After a good night on the overseas market, the All Ordinaries Index gained 54.5 points to close 1.2% higher at 4572.1.

Rio Tinto Limited (RIO) gained 2.8% to close at $71.34 after announcing plans to invest US$469m to construct the Kennecott Eagle nickel and copper mine in Michigan’s Upper Peninsula (USA), following receipt of final environmental approvals. First production from the mine is expected in late 2013.

News Corporation (NWS) gained 4.3% to close at $18.66 after launching a US$11.5bn takeover proposal to acquire all shares it does not already own in British Sky Broadcasting Group Plc. NWS currently already owns 39.1% of BSkyB’s issued capital.

Major stock rises:

OneSteel Ltd (OST) $3.20 +4.58%
AWE Limited (AWE) $2.13 +4.41%
News Corporation (NWS) $18.66 +4.33%
SIMS Metal Management Limited (SGM) $19.24 +3.55%
Qantas Airways Limited (QAN) $2.47 +3.35%

Major stock falls:

Downer EDI (DOW) $4.23 -5.16%
Foster’s Group Limited (FGL) $5.77 -2.70%
Coca-Cola Amatil Limited (CCL) $11.75 -1.09%
CFS Retail Property Trust (CFX) $1.95 -1.01%
QBE Insurance Group (QBE) $18.95 -0.58%

Finally go Queensland, 5 in a row tonight.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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House Prices – Are they too high and implications for retirement

admin — Tue, 15 Jun 2010 18:46:05 +0000

I had a meeting with some potential clients yesterday and the discussion turned to their (to me anyway) lack of preparation for retirement.

The husband (like all good dominant alpha males with a strong case of denial) advised that given that they had not accumulated anything other than their house, would be able to sell that to fund their retirement.

This always concerns me when I hear it for a couple of reasons:

1) Yes you can sell your house – but you will still need to live somewhere and very few people want to move from where they are comfortable to a smaller house in a less affluent suburb;

2) There is a social stigma to doing this – “It doesn’t bother me,” they say – 10 years before they have to, but when they do have to, they cannot move. Actually it also amazes me when people say they can live quite frugally if they have to but have a house full of plasma televisions;

3) Downsizing for many people is a smaller property – but usually at the same price; and

4) I am yet to actually witness a family selling their house to fund their retirement – have seen a few have to sell their house because they hit hard times or the breadwinner died, but that is a story for another day.

So it is with interest that I again read that market commentators say that our housing market is one of the 2 most overvalued in the world and needs to fall by 42% to reach its long term price ratio compared with family incomes – I have mentioned this a number of times in the past, see the following link : http://www.thebfsreport.com.au/featured/house-prices-again-is-it-a-bubble-or-not/

But I do think that Australians need to be aware of housing trends, particularly if they do think it will be the mainstay of their retirement income – have a look at this article, the link is attached and let me know what you think: http://www.theaustralian.com.au/business/housing-market-a-time-bomb-says-investment-legend/story-e6frg8zx-1225880119320

PS – The couple won’t be clients; they didn’t pass my screening tests.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Cost of Living Increases – the Past decade and the implications for investors

admin — Fri, 11 Jun 2010 09:15:22 +0000

For the past 2 years we have heard how tough all people are finding it in the real world.

An article in the Financial Review on Saturday June 5 actually quantified price increases for the past decade – given my view that we are now post GFC more accountable for meeting our income needs in retirement and this actually made me a bit nervous – am I doing enough, are you doing enough, but look at the table below to see what has increased by how much over the past decade:

Item	10 year Increase
Fruit and Vegetables	60%
Milk	36%
Cheese	66%
Bread	49%
Beef and Veal	44%
Lamb and Mutton	109%
Beer	64%
National Electricity Prices	91%
*Wages*	*44%*

In the past 10 years, household indebtedness as a percentage of disposable income – what you owe divided by what you earn has grown from 90% to 156% – this is far greater than in the UK and the US – and they are supposed to be the basket cases – we better hope China does not slow down.

Interestingly, according to RP data, house prices have risen by 146% nationally in that time with Brisbane showing the highest gain of 185%. Melbourne rose by 153% and Sydney by only 83% – I think this could be the better than building a gate at the border to stop the southerners coming on – they simply won’t be able to buy a house here, actually none of us will, last person out, please turn off the overpriced electricity.

What this means for the average investor is that you really do need to ensure you discuss with your advisor the strategies you can employ to ensure that your portfolio manages to keep pace with inflation, capital growth needs to be an important part of your forward planning.

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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Australian Share Market Update June 11th, 2010

admin — Fri, 11 Jun 2010 09:08:10 +0000

Following on again from strong overseas leads, the All Ordinaries Index gained 68.1 points to end the day 1.53% higher at 4516.5.

Amcor Limited (AMC) said it has received approval from the US Department of Justice to acquire Alcan’s Medical Flexibles operations from Rio Tinto Limited (RIO) as part of the Alcan Packaging acquisition.

AV Jennings (AVJ) said it has entered into a conditional contract to sell its contract building division to the Japanese listed company, Sekisui House Limited. The Australian residential development company said the arrangement would also see the two companies form an alliance around land and the use of the AVJennings brand, ownership of which would remain with AVJennings Limited.

Major stock rises:

Centennial Coal (CEY) $4.43 +5.23%
Macquarie Group Ltd (MQG) $44.72 +3.93%
Fortescue Metals Group (FMG) $4.11 +3.79%
Westpac Banking Group (WBC) $23.43 +3.49%
Perpetual Limited (PPT) $30.48 +3.39%

Major stock falls:

GPT Group (GPT) $2.78 -2.46%
Commonwealth Property Office Fund (CPA) $0.965 -1.53%
Transfield Services (TSE) $3.41 -1.16%
AXA Asia Pacific (AXA) $5.70 -1.04%
Downer EDI Ltd (DOW) $4.46 -0.89%

If you do have any questions about this or would like to know more about us, please email me at paul@bronsonfs.com.au or visit us at www.bronsonfs.com.au

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