Should I be worried when…?

when furniture stores that offer 4 year interest free deals start to get customers wanting to return furniture once the interest has kicked in as they can’t meet the repayments?

when my bank is actually offering me reward points for paying off my credit card debt?

when my newspaper instructs me “What to do if you’re about to lose your home”?

when I’m offered credit cards as impulse buys at train stations or airports by a bloke in a suit and white socks?

when my bank’s call centre congratulates me on being able to increase my credit card limit when I just called to get my on-line log-in details?

when house auctions try and draw out starting bids by offering free bottles of red wine? 

Futuris – Groundhog Day

Futuris is one of Australia’s listed agricultural stocks.  It’s a diverse business that is trying to be everything to Australia’s farmers – retailer of farm products, insurer, plantation operator offering tax effective respite, an auto parts business and grain aggregator.  Unfortunately that doesn’t include being an investment grade stock pick.  Consider that since of 2005 the stock has delivered a 6% annualised return compared to 17% for the market.

Furthermore, if you have seen one of their management presentations you’ve seen them all.  The story remains the same but nothing ever progresses.  The only thing that changes is the menu and my increasing frustration at not being a coffee drinker.

That said, given that Australia is coming out of one its longest droughts and that China’s appetite for soft commodities can only increase, it becomes clear that it is the agricultural sector’s time to shine…and frustratingly Futuris will likely be taken along for the ride almost by default.  My money, however, is on the likes of Incitec Pivot that actually have quality management, greater leverage to the ag cycle and have a commendable track record.

Bogan-Again Australians

Aussies love a battler and there is no greater battler than your suburban bogan.  So strong is our affection for the humble bogan that we have even elected a bloke called Kev to run the country, we have exported the bogan’s car of choice – the Monaro – to the rest of the world, we gave ugg boots to Britney, we gave Wimbledon Lleyton and presented Hollywood with Eric Bana and Rusty Crowe. 

Hot Wheels…

I have entered into the fast lane…and all it took was a journey through 15 postcodes, 2 bridges, a Game Boy and a washer.  By the end, all restrictions were off.  Finally my Italian steed would roam free.  My 50cc Aprilia has come of age and accordingly became unrestricted…So, it’s goodbye to the 50km/h cap and hello windburn.  To celebrate life in the faster lane I even purchased a genuine riding jacket with actual padding rather than sown on elbow patches.  Now, where do you get racing stripes?