What a Difference a Week Can Make! What About a Day?

Well we started the week with the Labor Day holiday for everyone but us stock brokers, and ended with the market dropping 54.5 points or 0.89% on Friday. The drop was due to economic news coming out of the USA but that wasn’t the big story for the week. The real exciting part of the week was the rumour BHP was taking over RIO. This forced up the price of RIO to as high as $99.69 before settling back and closing at $92.00 for the week.

It appears this was just a rumour but a number of analysts have commented that there’s a real chance the private equity plays could in fact make a bid for BHP or RIO. This may or may not happen but makes for interesting times. I’m still happy to hold both stocks for now.

Another stock which grabbed my attention this week is Macquarie Media (MMG), on Wednesday they held their investor briefing night at Jupiter’s here in Townsville. This road show was an effort by the company to tell their investors what they’ve been doing since they floated. Some of the key points on the stock are below, I have also attached a copy of our latest research for you to take a look at.

Download Macquarie Media (MMG) research.pdf

Key Points of MMG

1. Forecast yield for 2008 is 11.5%, no franking but will have a tax deferred component.
2. Price target is $5.29, it closed at $4.49 on Friday giving the stock a 17.8% up side.
3. The business not only has a large foot print in regional radio, but has recently acquires a two international media businesses both of which are leaders in their market.

What will happen next week? 

To start with we’ll be hearing from Jamie Packer, he’s providing us smaller players the opportunity to invest along side him in his own listed managed fund.

We’ll have more for you on this next week until then please contact us at ABN AMRO Morgan’s Townsville on 07  4771 4577 for all your investing needs.