On Track
November 23rd 2006 10:38
The Monday massive plunge wiping out $20 billion was plugged with a recovery of $18 billion back to the market on Wednesday accompanied by the buzz on Qantas being a target of a takeover by Macquarie Group and a US private equity group, Texas Pacific Group (TPG). The takeover hype continued its momentum today as the ASX S&P 200 benchmark index posted a gain of 21.2 points to a closing of 5446.9 points, which was further boosted by another takeover talk of Foster's after having been approached by the Belgium-based, world's largest brewer, InBev.
With a string of takeover frenzy by foreign private equity groups taking Australia by storm recently, does it, in anyway, indicate a degree of confidence on the local economy for time to come? By logical assumption, it would be so, as no one wants to buy companies in a country that is sliding to economic downturn. But, of course, it takes two to tango, in the sense that Aussie companies have the potential to run further than they can, if the tinkering was done, as believed by the private equity groups. However, one wonders why Qantas?, afterall they are sitting on some heavy debt and not to mention that the takeover, if through, will be financed by debt as well. Are they seeing something we are not seeing? or are they having a really good plan to turn the carrier around?
Raising eyebrows, indeed, but the most intriguing question is that whether the string of private equity group takeover bids could be used as a predictive content tool of the market future returns, which is a result that could be witnessed in a relatively short time, as successful takeover results are usually followed by years of restructuring of the target companies.
Despite the confidence boost by the private equities, we must be reminded that global inflation could punture the party as cheap money evaporates.
On the portfolio*
The Portfolio 1.5 - EW have recovered to the territory of above 30% as after-cost profits rose by $234 to $12,405 at today's closing. Returns are standing at 31.66%, on top of a gain of 0.55% from the previous trading day. Since 16th November, 2006, the portfolio was running in the 20s range until Wednesday, the 22nd of November, which it closed at 31.11%. Today's closing total value of the portfolio stands at $55,452.
*Disclosure
NOT SPECIFIC INVESTMENT ADVICE
This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person.
The blogger makes no recommendations as to the merits of any investment opportunity referred to in its website. It is advisable to obtain specific investment advice before making anyinvestment decisions relying on the information provided. While the information available in this publication is obtained from sources believed to be reliable, the blogger gives no assurances or guarantees that the information is accurate, complete or current.
The information is provided for informational purposes only and not intended to constitute legal, financial or professional advice. It has no regard to the investment objectives or circumstances (financial or otherwise) of particular recipients, and is not an exhaustive outline of available investment opportunities.
Appropriate professional advice should be obtained prior to acting on any information contained in this publication. The blogger will not be liable for any loss or damage incurred by any person directly or indirectly as a result of reliance on the information contained in this publication.
PAST RESULTS
Any past results shown or mentioned in any of our reports or web pages do not guarantee future performance.
ACCURACY OF DATA
Whilst all information on this site is believed to be accurate, we take no responsibility and give no assurances that it is accurate. We advise that you to double check any
data before acting upon this information.
With a string of takeover frenzy by foreign private equity groups taking Australia by storm recently, does it, in anyway, indicate a degree of confidence on the local economy for time to come? By logical assumption, it would be so, as no one wants to buy companies in a country that is sliding to economic downturn. But, of course, it takes two to tango, in the sense that Aussie companies have the potential to run further than they can, if the tinkering was done, as believed by the private equity groups. However, one wonders why Qantas?, afterall they are sitting on some heavy debt and not to mention that the takeover, if through, will be financed by debt as well. Are they seeing something we are not seeing? or are they having a really good plan to turn the carrier around?
Raising eyebrows, indeed, but the most intriguing question is that whether the string of private equity group takeover bids could be used as a predictive content tool of the market future returns, which is a result that could be witnessed in a relatively short time, as successful takeover results are usually followed by years of restructuring of the target companies.
Despite the confidence boost by the private equities, we must be reminded that global inflation could punture the party as cheap money evaporates.
On the portfolio*
The Portfolio 1.5 - EW have recovered to the territory of above 30% as after-cost profits rose by $234 to $12,405 at today's closing. Returns are standing at 31.66%, on top of a gain of 0.55% from the previous trading day. Since 16th November, 2006, the portfolio was running in the 20s range until Wednesday, the 22nd of November, which it closed at 31.11%. Today's closing total value of the portfolio stands at $55,452.
The winner stocks are highlighted in yellow.
*Disclosure
NOT SPECIFIC INVESTMENT ADVICE
This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person.
The blogger makes no recommendations as to the merits of any investment opportunity referred to in its website. It is advisable to obtain specific investment advice before making anyinvestment decisions relying on the information provided. While the information available in this publication is obtained from sources believed to be reliable, the blogger gives no assurances or guarantees that the information is accurate, complete or current.
The information is provided for informational purposes only and not intended to constitute legal, financial or professional advice. It has no regard to the investment objectives or circumstances (financial or otherwise) of particular recipients, and is not an exhaustive outline of available investment opportunities.
Appropriate professional advice should be obtained prior to acting on any information contained in this publication. The blogger will not be liable for any loss or damage incurred by any person directly or indirectly as a result of reliance on the information contained in this publication.
PAST RESULTS
Any past results shown or mentioned in any of our reports or web pages do not guarantee future performance.
ACCURACY OF DATA
Whilst all information on this site is believed to be accurate, we take no responsibility and give no assurances that it is accurate. We advise that you to double check any
data before acting upon this information.
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