Liams Last Post : Morgan Kelly depresses , Bond yields rise again wih financials tanking. Tomorrow brings DCC and CRH.

Good Afternoon ,

 

The storm in Irish financial markets continues and this one is now such a tempest that it is in danger of bringing down the whole system.

 

The Financials stocks are now very weak reacting to the Bond market paralysis. The Budget pronouncements have done little to assuage investor fears and as Bond yields soar so too does the markets fears about the Banks access to funding. Irish Life is the number one geared play to funding markets and the stock has fallen by 60% in a week. The value destruction and the loss of confidence is enormous. Banks of Ireland also has been hammered but closed only down -4.25% at 39c after being down -13% at one stage.  AIB is trading at 27c an enormous discount to the price level at which the government has agreed to subscribe for shares.

 

I can only refer you to Morgan Kellys article in the Irish Times as perhaps the single most depressing thing I have ever read. Of course the bears are in the ascendancy now and there is absolutely no mention in the article about businesses which are re-structuring , re-shaping their proposition and increasingly competitive. Not everyone is a loser and there are some great companies whose track records at management during these toughest times are clear.

http://www.irishtimes.com/newspaper/opinion/2010/1108/1224282865400.html  If you thought the bank bailout was bad, wait until the mortgage defaults hit home

Tomorrow we get news from CRH and we await to see news about aggregates deliveries, and pricing and European Cement pricing with bated breath. Lets hope it is positive news showing trading performance at least in line with sector trends.

DCC report on their seasonally quietest period. The consensus of for eps of 52c , the fears were that the winter would be warner thaan last year but last nights storm and the sudden cold will give people confidence that a multi year big freeze may be imminent. Also the news I wrote about and highlighted last week about the prospects for the Xbox Kinect may help drive the stock depending on their own comments.

With Bond yields near 8%  I hope you have a good evening

Liam

 

 

 

 

 

 

 

 

 

 

 

___________________________________________

Liam Boggan

　

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

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