Expiry fast approaching

September 17th, 2009  by Neil Gynther

Closing Data

	Current	Change	%
Dow Jones	9791.71	108.3	1.1%
NASDAQ	2133.15	30.51	1.5%
S P 500	1068.76	16.13	1.5%
FTSE 100	5124.13	82	1.6%
Nikkei 225	10270.77	53.15	0.5%
ASX 200	4,650	110.1	2.4%
COMEX Gold - Dec 09	1020.2	13.9	1.4%
COMEX Silver - Sep 09	17.43	0.43	2.5%
COMEX Copper - Sep 09	293.65	9.15	3.2%
WTI Spot	72.34	1.41	2.0%
AUD-USD	0.8738	0.0106	1.2%
Aluminium	1851	38	2.1%
Copper	6315.5	159.5	2.6%
Lead	2220.5	107.5	5.1%
Nickel	17155	430	2.6%
Tin	14810	110	0.7%
Zinc	1872	45.5	2.5%

Wall Street

Stocks gained Wednesday, pushing Wall Street to its highest level in a year, with a rise in industrial production and a spike in commodity prices fuelling the advance.
Overall, the Dow Jones Industrial Average closed up 108.30 points, or 1.12 per cent, at 9791.71. The index has now gained in eight of the last nine sessions and closed at its highest level since October 6 2008. For the month, it is up 3.1 per cent.

Australia Market

The local share market is likely to follow Wall St’s positive lead and open higher this morning. U.S. stocks rallied overnight in response to some positive economic news that spurred hope that the economy is well and truly on its way to recovery. A rise in commodities and oil may give resource stocks and energy companies a boost.

Shares in budget airline Virgin Blue Holdings Ltd (VBA) rose 5.48 per cent to $0.38 yesterday. Virgin Blue is reportedly in talks with Boeing to acquire up to $4 billion of new planes to replace its existing 737 domestic fleet. According to a report in the Sydney Morning Herald, CEO Brett Godfrey says the last 12 months was the most challenging, unexpected and taxing period with the impact of the global financial crisis, high oil prices and the outbreak of swine flu. The paper reports Mr Godfrey saying Virgin is in discussion with Boeing to purchase up to 50 aircraft to replace its existing 737 fleet from 2011. Virgin Blue expects to break even this financial year. Virgin Blue posted a $160 million loss in 2009.

Shares in manufacturer of building and construction materials, Boral Ltd (BLD), gained 2.39 per cent to $6 yesterday. The company has announced the appointment of Mark Selway as CEO effective from January 1 2010. Current CEO Rod Pearse announced earlier this year that he will be retiring at the end of December 2009 after 10 years as the head of Boral. His replacement, Mr Selway, has been CEO of the listed Scottish headquartered Weir Group Plc, an engineering business, since 2001. Boral’s 2009 net profit was $142 million.
The Australian dollar hit 13-month high going above US87 cents overnight. With the recession receding and financial markets in recovery, investors have become more confident there's no longer a need to hold their money in a safe-harbour currency like the US dollar.
 AS this market continues to rise many investors will be asking the question “Should I let my stock be exercised?” If you are treating it as “money in the market” then the answer is yes, take profit and move on to the next situation. We will provide you with the companies that have the best premiums to write into October. There may be some capital gains or other tax implications that you will need to consider when contemplating exercise but overall the best strategy is to let the stock exercise and go again.

I wrote a couple of days ago as to what I expect this market will do. To reiterate, I expect it to steadily rise. It will have some pullbacks along the way of a general uptrend. It is these flat periods that our advisers will be able to identify as the best times to reinvest.

Expiry is next Thursday and, with the market at this level, it will be very busy for us here at Freeman Fox. Please look at your positions NOW and contact your adviser should you wish to discuss your position.

 Please NOTE WELL that NCM goes ex dividend ( 15c ) in two days time so you have today and tomorrow to discuss any open “in the money positions” with your adviser.

Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.

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