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Author: David Press Created: 1/22/2011 11:43 PM
Blogs and discussion on the latest market news, trends and much more.

Is the Market Creating a Social Media Bubble?

By David Press on 5/20/2011 8:12 PM


Having eagerly followed LinkedIn's IPO and first trading day, I can't seem to shake that strange feeling of deja vu. LinkedIn shares traded as high as $122.70, closing at $94.25, a whopping 109% premium to the company's listing price of $45 per share on the NYSE. It's certainly not the first time a company's first trading day has created a frenzy and pushed shares significantly higher...but the thing that worries me are the all too familiar parallels to the late 1990's early 2000's dotcom boom and bust.

 

According to Bloomberg, at the close, LinkedIn was valued at $8.91 billion dollars, some 24 times 2011 revenue (annualised from first quarter revenue figures). Should common sense prevail, I feel there may very well be some punters walking away from LinkedIn a little lighter...
Comments (23)

Cash vs Equities in 2010...6 Months Later.

By David Press on 7/6/2010 9:04 PM


Time is flying by and June 30th been and gone. As such I thought it fit to revisit the article I wrote at the start of the year discussing whether cash had overtaken equities as the investment of choice for 2010. While Europe's debt woes, the United State's slow recovery and China growth concerns have thrown oversize spanners in the works for equity investors (some may say these spanners only unlock great bargains), the effect on wholesale funding for banks has resulted in a continuation of great returns for cash investors, albeit at a slighter lower rate of return in some cases.

 

At the start of the year we were in the middle of a “perceived” rapid recovery with expectations of continuous rate rises and many an economist predicting a cash rate of 5% or more. Earnings too were expected by many to be on the rise, leaving many discussing whether to invest in cash or equities in 2010. It took only months however for the world economic concerns mentioned above to change the perceptions and expectations of must pundits.

...
Comments (16)

Merger and Acquisition Activity Increasing

By David Press on 4/1/2010 6:31 PM
Newcrest's bid for Lihir Gold today joins a string of high profile M&A attempts of late and signals the intent of big mining companies with large cash surplus' going forward.   Lihir's board today rejected the offer but signalled they may be more open to a higher bid in an effort to maximise the return for shareholders.  LGL's shareprice closed up over $1 to $4.04 today.

 

Newcrest's bid alongside Peabody Energy's bid for Macathur Coal, Bright Food Group for CSR's sugar unit and Shell's successful bid for Arrow Energy signals an impressive return to M&A activity.  Looking forward, it is hard to see a slow down in mergers and acquisitions given the cash surplus many larger material's companies will be building as a worldwide recovery continues to unfold.  The stength in the materials sector should fuel purchases by larger diversified companies of the likes of BHP.  Balance sheet strength and strong cash flows after the slowdown through 08/09 offer great opportunities to add new assets and fuel growth.

...
Comments (16)
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Are You Offsetting Your Home Loan?

 
Article by David Press (B.Comm)
03/06/2010
 
Offset accounts are nothing new to banking, however it still surprises me to see how many people with home loans still do not know what an offset account is or how it works. Before explaining the key benefits, I'll explain how the offset account works and then we'll look at why you potentially should have one.  Read On...

 

Has Cash Overtaken Equities as the Investment of Choice in 2010?

 
Article by David Press (B.Comm)
17/01/2010
 

That is the question many are now pondering as equities have come off their March 09 lows and rebounded over 50%, making many of the top companies in the ASX look to be at fair value or even expensive based on current price earnings ratios...Read on  

 

Are You Outsourcing the Wrong Tasks?

 
Article by David Press (B.Comm)
21/10/2009
 
Whilst outsourcing tasks has become a fantastic way to increase efficiency and effectiveness in business' of all sizes, the small to medium enterprise owner must remain careful not too outsource the wrong tasks or roles. All too often the roles which produce income are that of an employee or are outsourced, leaving the owner/manager in a back office completing unproductive tasks...Read on

 

Make The Most of Your Transactional Banking

 
Article by David Press (B.Comm)
 
Do you have a transaction account, a savings account and a credit card? Are you using them to their full potential? In this article I'll outline a simple and effective transactional banking strategy that could maximise the earnings on your savings and help you achieve the goals you are saving for even faster.  Read on...
 
 

The Forgotten Rates Decision

 

Article by David Press (B.Comm)
In a time when rates are sitting at 50 year lows, the major decision for most is whether to fix their lending rates or remain exposed to interest rate changes. However there is an ever growing percentage of our society who has another side of interest rate choices on their mind.    As our population ages, more and more will be less concerned with mortgage rates as they are with term deposit and cash interest rates in which a large amount of their retirement income is derived...read on

 
 

Package Your Products for Massive Savings at the Bank

 
Article by David Press (B.Comm)
 
Whether you’re a professional or not, ‘professional packages’ offered by the big four banks (and other institutions) are a fantastic opportunity to make some real savings on your banking fees, interest charges and insurance premiums...read on

 

 

Time In the Market vs Timing the Market – A Long Term View to Investing

 
Article by David Press (B.Comm)
 
The power of fear and greed in the market has been as evident as ever through the last five or six years in which we have seen a sustained bull run, largely due to the growth of China and demand for commodities in which almost any stock proved a winner, followed by the rapid collapse in which virtually no stock was spared the wrath of a worldwide credit crunch and failed financial markets.  Read on...

 

  
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