Report Cover Page

Contents

Where are we in the Cycle?
Helped by another possible delay in a Fed interest rate rise, a weaker US dollar was a help to commodity prices at the end of the week but left the cyclical downtrend in prices intact. There was more evidence of a loss of European growth momentum.      More...

Market Directions
Equity markets appear to have lost their sense of direction with global growth, corporate profits and policy all languishing in no man’s land between what had been and what is to come. US labour market conditions, offering the prospect of a longer period of monetary accommodation, ended up dominating the outcome for the week.      More...

Portfolio Performance and Positioning
There were no changes to the portfolio models. The Phase I model benefited from having included Lucapa Diamond Company. The 1.4% gain in September for the macro model was 11 percentage points better than its benchmark. Cash holdings remained elevated.       More...

Stock Reviews and Rating Analysis
Mincor Resources (MCR:AU) is putting in place a growth platform for the future it may not survive long enough to enjoy. Mincor is a Phase IV company with a declining output profile as its resources are exhausted facing the prospect of costs remaining above its selling price. Despite a historically strong operational and financial track record, Mincor faces the prospect of having to close its existing mines to await better conditions. Ironically, Mincor will probably retain an investor following as it becomes one of the companies most leveraged to a cyclical improvement in nickel market conditions.
For recent company reports...

DAILY BRIEFING: The PortfolioDirect market diary offers brief thoughts on current issues affecting sector investment strategies.

Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

All opinions and estimates in this communication constitute judgments by E.I.M. Capital Managers as of the date of this communication and are subject to change without notice. The publisher is under no obligation to make public any change in view about any matter referred to in this or any linked documents.

No references to past investment performance should be taken to indicate anything about future performance.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.