Welcome to Friday Fools. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened 0.7% higher after Wall Street hit all-time highs overnight.
The Dow Jones soared 1.1% as did the broader S&P 500, while the tech-heavy NASDAQ rocketed up 1.4%.
Oil prices fell with Brent Crude Oil down 0.3% to US$66.59 per barrel while WTI Crude also fell 0.3% to US$59.72 per barrel. (WTI stands for West Texas Intermediate and is the benchmark oil price in the US while the Brent crude oil price is more widely used in Europe.)
The spot iron ore price fell for the third consecutive day, losing 0.5% to US$62.30 per tonne.The Australian dollar has slipped slightly against the US dollar and is currently buying 80.2 US cents.
- Vocus Communications Limited (ASX: VOC) is pulling every trick out of the bag to try and get its takeover offer for Amcom Telecommunications Limited (ASX: AMM) approved by shareholders. Reports suggest Vocus has sold its 10% stake – which wouldn't have been able to be voted.
Rival TPG Telecom Limited (ASX: TPM) holds 19.99% of shares in Amcom – a stake large enough to block the takeover, if Vocus had continued to hold its 10% stake.TPG can't raise its stake, without making a takeover offer – as it would push it over the 20% threshold. Vocus needs 75% of Amcom shareholders to vote for the takeover for it to proceed.
- Retailers have been in the news the last few days, after Treasurer Joe Hockey announced a number of boosts to small business, including a lower tax rate, the ability to purchase and write off any assets purchased up to $20,000 and GST for digital purchases under $1,000.
Clearly, the government expects thousands of small businesses to go out and spend – much of it likely to boost motor dealer groups, particularly in the lead up to the end of the financial year in June, as well as the likes of retailers such as Officeworks and Bunnings, both owned by Wesfarmers Ltd (ASX: WES), consumer electronics retailers JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN).
Listed motor groups AP Eagers Ltd (ASX: APE) and Automotive Group Holdings Ltd (ASX: AHG) have already posted above-market gains and more could be in store.
- Tweet of the Day
"Investors generally overestimate what they can do in the short run but greatly underestimate what they can do over a lifetime."-@iancassel
D.Muthukrishnan (@dmuthuk) May 14, 2015
Ahh, the power of compounding. How often we dismiss it in favour of something more exciting, fresh and hip, instead of letting it do its job for us, especially when it comes to investing. - Stock of the Day – brought to you by myself – Woolworths Limited (ASX: WOW). If you want an in-depth view of the retailer's major woes – here it is.
