Liams Last Post : ANglo pursues its former CEO , Greencore talk the talk but investors wait for the placing.

Good Afternoon ,

  What goes around comes around....The most interesting news this evening is that Anglo Irish Bank has issued proceedings against its former chief executive David Drumm relating to a recent move by the couple to transfer property out of their joint names into Lorraine Drumm's alone. That would have the effect of putting the property which was used as a security on a Eur8m loan out of reach of the bank.

Wow is all I can say... a NAMA case in his own right ?  I wonder how the other directors are getting on with their loans... Putting the property out of reach suggests that they are all caught on the horns of their own hype that the market would go on forever and now it looks like the collateral which is obviously personal recourse to the family home etc maybe called…. There will be few tears shed when this news which appeared on the RTE website gets into general circulation.

 

In Economic News in the USA today , the good news continued to come with Sales of single-family homes increasing +6.2% to a seasonally adjusted annual rate of 430,000. Home sales in September fell 2.4% to 405,000. Year over year, sales were up 5.1% since October 2008 and Inventories declined. There were an estimated 239,000 homes for sale at the end of October. That represented a 6.7 months' supply at the current sales rate. An estimated 250,000 homes were for sale at the end of September,  equivalent to 7.4 months' inventory.

 

Greencore produced its results this morning , , all looked ok and certainly the company is continuing to talk the talk about the prospets in the USA. The disposals of Water and the possibility of a disposal of the MAlt business would take pressure off the fears about how they would fund this growth. THe stock was however quiet onth enews and closed +0.54% , obviously buyers await the Carroll Stake placing...

 

The Banks were a bit better today , not much on the news front , I spent the day yesterday with one of my Kepler Friends Dirk Becker and the subject of bank capital and amounts which needed to be raised across Europe just reminded me about how the Irish Banks like their European breethren were too slow in recognising the looming problems and they have faile drepeatedly to take advantage of any opportunities to tap the markets for the capital that they require. It woudl appear that Bank capital is back, on the agenda across Europe again , It never went off the agenda in Ireland but the scale of fund raisings suggests that the banks who move fastest when or if any window opens up will be the best positioned over time. We have written a note to that effect some time ago but the shift in sentiment since the heady days of September when some of the large European Banks were testing the waters for investor appetite with investor days and presentations which served to get everyone bulled up for a while are now firmly behind us...   

 

The Irish Market opened at its high and range tradede before taking the decisive move downwards at midday. Looks Like someone range the bell to trigger the sell off or just nerves ahead of the US economic releases.  Most markets rallied at 14:30 but Ireland and it does look like Wall Stret too has seenthe best of the day. Lets see how it plays out . 

 

The Dollar continues to Slide to 1.5088 and Gold touches $1200 an oz with Oil just a touch stronger

 with Brent touching $78 a bbl.

 

 

Thanks Giving Week , a big week for US retail sales , not many irish flocking to take advantage of the weaker Dollar , I was pleased to buy my son a new bike for his 1oth Birthday yesterday. I was left scrambling around Dublin as inventories appeared low for some reasonand I was pleased to buy the appropriate bike. I have to say I was less pleased to day to see that the same Bike is for sale in Belfast for a whopping 23% less ...Guess where I am going to my christmas shopping....it wont be Dublin.

 

Have a good evening ...

 

Liam

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

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