Report Cover Page

Contents

Where are we in the Cycle?
There has been no change in the assessment of cyclical positioning with global growth momentum - the single most important ingredient for any cyclical improvement - still absent.    More...

Market Directions
Corporate earnings and supportive liquidity conditions have returned as influential market factors but resource sector equities are showing signs of running out of steam for the time being.    More...

Portfolio Performance and Positioning
Phase III stocks lost ground but selected Phase II stocks have shown relative strength coming from positions of prolonged poor performance. In the absence of improved cyclical conditions, high macro model cash positions have been retained.      More...

Stock Reviews and Rating Analysis
Kidman Resources (KDR:AU) and Silver City Resources (SCI:AU) have both been diverted from credible strategic plans by the allure of lithium. Kidman Resources had a well defined gold exploration and mine development strategy. Silver City Resources was embarking on a zinc/silver strategy around Broken Hill. While both received positive initial market reactions to announcements about lithium exploration initiatives, the beneficial price effects have not been sustained as scepticism about the near term investment returns from lithium has grown. Now, the strategic plans of both companies risk confusing investors as the companies must once again define credible development priorities.
For company reports & ratings...

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.