Here’s a selection of the best comments from the last two week’s comments on the Air Blog.

TLS Nears $4/Lihir Gold Down But Looks Up

B dennisl on 1 Nov 2006

Telstra T3 offer

There seems little to attract astute retail investors to the T3 offer, especially when the final total cost is unknown, and although many have suggested $4, that has already been reached with the rapid price increase over the last week, and there would appear no reason to believe such a rise could not continue even beyond the three trading days upon which the final share purchase price will be determined, resulting in a much larger cost than investors anticipated. This will considerably erode the value of the retail investor discount, set at 10 cents per share, and also the ROI. It may also set a price that market will not sustain resulting in a repeat of the T2 scenario, where the price falls below the purchase price, quite possibly before the final payment is made, and the issue of the 1:25 bonus share will do little to ease the pain to investors

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Housing Slows, Retail Grows?

By Observer on 1 Nov 2006

I like the comment about "food retailers remain strong".

People have to eat. There is no alternative.

Indeed, the obesity epidemic suggests that people are eating more than previously. It is good for my WOW shares.

Housing would slow if the general consensus is for prices to fall due to rising interest rates and some investors switching from property investments into superannuation due to recent tax changes.

Retail spending for the Christmas season will probably be strong. Annual bonus payments in the mining sector and finance sector will be a 'liquidity flush' for the lucky ones.

The resumption of the bull market in shares will also add to the 'wealth effect' for people with ownership of shares, especially the ones collecting from some of the takeover activities.

Over the next year, more people will replace their old TVs with new Plasma/LCD TVs as part of the normal renewal time frame. Prices of new TVs have fallen and the products are better as well. New generation sets have built in HD digital tuners, eliminating the need for a separate set top box. I have been waiting for this and will buy one for Christmas.

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Rinker Battle Starts, Watch Perpetual

By Bigbadbob on 1 Nov 2006

Once we've sold off all the strong performing Companies what will be left for us to invest in locally..Telstra..No sorry I said strong performing..Think long term Perpetual!

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T3 Trading Booms

By veritas on 31 Oct 2006

Once the government has sold its majority stake in TLS the handcuffs will come off the Regulator who will burden TLS with huge capital costs as it will have to provide infrastructure for little return to the parasitic nine who don’t do any of the heavy lifting but just piggyback on the work and assets of the TLS shareholders while whingeing to the regulator about the onerous TLS charges and then making hefty donations to the Liberal Party's re election campaign.

By Mr Regulator on 31 Oct 2006

My work is done, all phone subscribers (that's every one of us) are enjoying ultra low prices today because regulators have made sure that Telco competition is fair. The people owned the infrastructure since the government funded it with our taxes; it’s only fair it be used by other companies to force prices down.

I say call 1800 MY T2 SHARES STINK and get over it.

By Observer on 31 Oct 2006

The $200 million in fees for T3 has created a lot of 'smoke and mirrors'.

If the broker's commission had not been doubled for T3, the selling gimmicks might be more subdued.

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Housing Slump To Continue, Rents To Soar

By Observer on 31 Oct 2006

Rents have to rise to compensate for rising interest rates. Rental yields remain very low, even with the rises.

As around 33% of households rent their homes, rising rents will add to inflationary pressures.

Drought’s Toll To Grow

By Steve on 29 Oct 2006

Hi.The reason why markets didn't react to revised crop production figues is that everyone in the industry already knew the true picture. Actual production may still (will) be lower than forecast.

Rice- there's plenty around the world. It's only Australian grown rice that will be substantially more expensive. Imported rice may rice 5% or so or so but for such a cheap commodity that's insignificant.

Wait till you see the increase in the price of chicken meat. I suspect it may end up being imported as there is a possibility that there won't be enough grain to feed enough poultry to cover Australian requirements.

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Rinker Chased

By Bigbadbob on 30 Oct 2006

Another strong performing Aussie Co to disappear? Think of all the so called investors who walked away from Rinker when the share price hit the $20s..Little faith.. They lost their dough. Tough this Co. has been an outstanding performer but was sold off on downgrades because of a supposedly softening US economy. It takes the Mexicans to appreciate how good Rinker is. And some like me who bought at $12/13 for the long term I hope

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Fertility Rites; Australia booms

By Ron on 27 Oct 2006

I think a declining population is good. I don't understand how the government is (finally) worried about climate change and environmental issues on one hand, then trying to encourage population growth on the other. The two are specifically related issues. Yes, it will be economically difficult as the boomers get old, but the world will be far better off if we tighten the belts and cop it for twenty years until the demographics balance out again than if we keep trying to grow populations to avoid a bubble. What is Costello thinking "one for mum, one for dad, and one for your country"!?!?

By saildog on 27 Oct 2006

Your article on birth rates is predictable based as it is in current economics.

There are a considerable number of very well informed people who believe that world population has passed its long term sustainable level and that a die back this century is inevitable.

The unholy trinity of energy depletion, climate change and water shortages (rainfall redistribution) are already causing death, war and famine. The government, as usual, has not comprehended the problem, let alone put appropriate policy in place. Dimly, unwillingly and far too late it seems to be waking up to climate change. "Peak Oil" has not even entered its lexicon and there is no national policy for water.

I would like to see a Department of Energy and Water created with national authority. However it is probably too late. My kids, still at school, will have a harsh and difficult life, because our generation has been profligate with finite resources and utterly failed to consider how the next generation will cope with a world that includes more people, less oil and a wrecked climate.

Supporting ever more mouths to feed is simply irresponsible. We need to adjust our thinking to zero growth economics.

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Situations: FXJ, FCL, COH And More

By dover121 on 27 Oct 2006

Rupert's dabble will delay the day of reckoning for FXJ. For the near time they look expensive.

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Interest Rates: Standby

By Observer on 26 Oct 2006

A survey by Bloomberg yesterday indicated that 25 out of 25 economists agree that a rate rise in Nov. 2006 can be expected.

Now that consensus has been reached, the commentators have moved on to speculate on one further rate rise in Feb. 2007 (two economists in Westpac - including its Chief Economist, Bill Evans; and BIS Shrapnel's Frank Gelber are in this category).

All it takes for further rate rises in 2007 is inflationary pressures to continue.

An additional inflationary pressure is on its way. China raised its export prices by up to 10% recently. Take a look at all the various imports from China. Prices for those items will soon rise when they are unloaded from shipping containers and hit the shelves.

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By Don on 26 Oct 2006

Not sure about this??.."Farmers are de-stocking because they've run out of money"..erm..Wouldnt be a shortage of food for the stock would it? Or do they eat money?

By Tim on 26 Oct 2006

Petrol goes down (albeit marginally and not in line with world oil prices) and food goes up. Interesting that our largest food and petrol retailers, Coles Myer and Woolworths profits continue to grow.

One way to assist in counteracting the interest rate increases is to grow your own fruit and vegetables (watered from your rain water/grey water) and ride a bike.............................................

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