Tuesday, May 30, 2006

Financial Review Review

I thought I'd include a segment about once a week based on my reactions to the day's publication of the Australian Financial Review. Today, the articles which caught my attention were:

* China heading for a tight spot in iron ore game. This article discusses the possibility of China being unable to secure fixed-price iron ore supply. While many of China's competitors have secured fixed prices, the market remains open to manipulation. Secured fixed prices are at a discount of around 35% to the current 'spot' or market prices. Impacts for major suppliers are obvious.

* Netting sales. This article discusses the potentially undervalued company Clean Seas Tuna. They have established a fishery and are experiencing a strong demand for their stock. The new agriculture?

* ASX backflip on index sparks a fear of foreigners. This article is talking down the benefits of listing more foreign companies on the ASX, but that would seem to me to be a positive step. The downside is said to be that the competition for capital would harm capital raising by Australian companies. However, such protectionist attitudes seem to be a bit 1950s. I would have thought that having a more diverse market could only advantage the buyer, and having global competition would allow the market to more strongly direct specialisation.

(This is not financial advice. I'm just this guy, you know?)


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