The day before they issued there downgrade on aio, look which company pops up in there value section. It is just so wrong. I will never listen to brokers again.
Credit Crunch to Credit Crisis: Is the End in Sight? Investors around the world have been scrambling to slash their forecasts of economic growth as the turmoil in financial markets spreads rapidly to the “real” economy: from Wall Street to Main Street. This has prompted unprecedented action from monetary and fiscal authorities globally in the midst of a share market slump. For equity markets, the battle continues: policy makers and valuation on one side versus earnings fears and forced sellers on the other. With global GDP numbers being revised down, corporate earnings are also being revised downwards. From the peak of corporate earnings in October 2007, global reported earnings have fallen 10%. In a typical earnings downturn, earnings fall 25% from peak to trough. But despite the earnings downgrades, share prices have moved ahead of fundamentals. We estimate the Australian market is pricing in an earnings decline of -30% over the next 12 months. In other words, expectations of very weak earnings – i.e. a recession level downturn or more – are already in equity prices. We discuss these themes in this month’s edition of the Private Client Portfolio Strategist. Private Client Stock Suggestions Core/Long Term Growth Income Value ASX Consolidated Media Commonwealth Bank Asciano Group Cochlear Incitec Pivot Coca-Cola Amatil Arrow Energy CSL Leighton Holdings Insurance Australia Harvey Norman QBE Insurance Metcash Spark Infrastructure James Hardie Santos Newcrest Mining St. George Bank OneSteel Toll Holdings OZ Minerals Suncorp Metway Wesfarmers Westpac Banking Sonic Healthcare Tatts Group Westfield Group Telstra Corporation Woodside Woolworths Source: Citi Smith Barney Research Services Group, changes in bold, stock under A$1bn market cap in italics. Citigroup Global Markets Limited is advising BHP Billiton Ltd in relation to the proposed takeover of RIO Tinto Ltd. As such we are restricted from commenting on both compa
AIO Price at posting:
92.1¢ Sentiment: None Disclosure: Not Held
