Report Cover Page

Contents

Where are we in the Cycle?
Paradoxically, investible savings have never been more abundant and capital has flowed most freely to where sector returns are proving most inadequate. Companies seeking funding are failing to meet the challenges thrown up by the structure of the modern capital market. The resulting gloom is needlessly shrouding the points of light emanating from deserving projects.          More...

Market Directions
Equity prices remain tied to oil prices although both appear to have been uncomfortably stretched. Gold price downside also looms based on the historically stretched connection with silver prices.    More...

Portfolio Performance and Positioning
Across the board weakness in sector equity prices last week eroded March returns with Phase I stocks in the portfolio models giving up most ground. High cash postions have been retained.    More...

Stock Reviews and Rating Analysis
Heemskirk Consolidated Limited (HSK:AU), developing a hydraulic fracturing sands property in western Canada, has been classified as a Phase II company and rated ‘3+’ on the five point PortfolioDirect rating scale. The PortfolioDirect valuation model implies a premium to the current market price of 140%. The absolute value of the company would increase 76% from completion of the anticipated second stage, based on the PortfolioDirect modelling. While market liquidity does not directly impact valuation considerations, investors should be aware of the difficulty in trading shares in Heemskirk arising from the low market liquidity of the stock. Liquidity aside, the company offers an unusual commodity exposure which would assist investors to improve diversification of a resources portfolio.
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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.