Welcome to Wednesday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) has crashed at the opening, down 0.9% already, following the leads set by Wall Street overnight. The S&P 500 and tech-heavy NASDAQ both lost 0.1%, while the Dow Jones Index fell 0.2%.The spot gold price dropped 0.6% to US$1,208 an ounce, while iron ore continues to fall, losing another 90 cents overnight to US$77.50 per tonne.
At times like these, it may help investors to turn some advice from the world's greatest investor – Warren Buffett. Here's a free report we've written, which may interest you.
The Wisdom of Warren Buffett – and 2 ASX stocks he could love - Is Rio Tinto Limited (ASX: RIO) a takeover target?
Bernstein Research on Wall Street certainly thinks so. Analysts at the firm suggest Rio is a logical takeover target by giant resources and commodities trade Glencore.News reports also suggest that Glencore CEO Ivan Glasenberg has told institutional investors that Rio was a more likely play than London-based Anglo American.The main issue is that Rio's market cap is around $105 billion compared to Glencore's circa-$84 billion. But any takeover may not occur for years – BHP Billiton Limited's (ASX: BHP) tilt at Rio was launched two years after first devising the plan.
- Liquefied Natural Gas Limited (ASX: LNG) boss Maurice Brand has told the Australian Financial Review that he's surprised by the timing of the company's rocketing share price, rather than the magnitude. LNG shares are up 1,300% so far this year, and 1,637% in the past twelve months – and you can read more on why in this article we wrote yesterday.No other company in the ASX 200 has even doubled in price since January.
- Tweet of the Day.
A photographer has made over $10,000 by licensing this photo of bitcoins: https://t.co/LQWAsgOfo5 pic.twitter.com/8O07Iz0roy
Bloomberg News (@BloombergNews) September 30, 2014
More money to be made in taking photos of bitcoins than in actual holding bitcoins? - Stock of the Day – brought to you by Motley Fool Australia – our writer's selection of their Top Stock Picks for October. Eagerly awaited by investors each month, this is a must read.
