E.L & C Baillieu meeting

Hi all,

Yesterday I had a briefing with E.L & C Baillieu, mainly they just talked about the market environment for Australia and the world, key points:

They expect Australian interest rates to rise by 1% – 1.5% by the end of next year.
Continued volatility in Europe with small growth in the US, Australia should grow on the strength of the BRICS.
Australia economy to overheat based on our low unemployment rate, which will cause inflation to increase.

Stocks they like:
CPA
APA group
Adelaide Brighton cement
Brickworks
Dexus
Westfield
And the banks (they didn’t pick a favourite)

Stocks they didn’t like:
Telstra (they have had a sell on them for months) – their Dividend is unlikely to be able to be maintained, a few analysts have this view. The company is struggling to keep it’s existing customers and isn’t competing well with others.

In general they were down on the telco’s but liked some of the engineering companies who will be implementing the NBN.

At present they are expecting short term volatility in the markets, especially if Labour gets in due to the sovereign risk they have brought with the Resources Tax. Labour (under Krudd) scared a significant portion of foreign investment away from Australia for the short term; however with the new Resources Tax deal or the Libs getting in this should return to our market in the medium term.

Cheers,

trav

 

 

 

Travis Lepp is an apple fan and managing director for http://www.enunc8.com. Enunc8 specialises in consolidating MYOB, Quicken and disparate Data in addition to it’s web based analytics and reporting.

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