The Good Morning Report – 12th December

5 Things that Grabbed my Attention

1. Chemist Warehouse (CW) is being basically backdoor listed via the much smaller Sigma Healthcare (SIG) in an $8.8bn deal (most of it in new shares issued to founders of CW).....CW is an absolute beast of a business and with doctors hooking kids on cocktails of pharmaceuticals from very young ages, they'll have regular customers for life.

2. Aussie crypto exchanges have been reporting some big volume recently as punters pile in again.....Understand: this market is not for the feint of heart and loading up after already strong gains can be a recipe for disaster - especially if done with leverage. 

3. Wells Fargo is warning of massive layoffs in 2024....Another RED FLAG for the US economy. Wells Fargo is considered a "Main Street" bank rather than a "Wall Street" one.

4. Mining giant Anglo American is expecting to produce  200K tons less copper in 2024 than previously forecast and also plans on cutting spending by US$1.8bn out to 2026.....Great copper shortage is coming!

5. Regis Resources (RRL) finally closed out its disastrous GOLD hedge book. They had 70K ounces remaining which were sold @ A$1571 Vs current GOLD price of $A3015 - the banksters did an absolute number on a very gullible board (which saddled shareholders with losses)...Anyway...it should be onwards and upwards for RRL when we get over the current correction in GOLD. BUY last sale $1.895

ASX Market Update

ASX 200 up 4 points to 7199

Star Group (SGR) shares fell another 8.7% to a fresh all time low $0.475. Kind of amazing that a small group of individuals, getting paid like rockstars, managed to destroy a business that had been granted a number of very cushy casino monopolies.

Remember the old saying "The house always wins"? Hahaha - we can safely toss that one in the bin; SGR has blown up billions.

Random Observation

This is a great little chart...

Calculating the gain need to recover from a loss seems to give some investors trouble. If you need a quick and easy resource to help, the below visual will come in handy! pic.twitter.com/bmwLYSWbou

— Barchart (@Barchart) December 10, 2023

The Day Ahead

• Our SPI is up 8 points
• Bitcoin down 7% to $40,640
• BHP in US down 0.5%
• Newmont down 0.69%
• Block Inc in US down 0.67%

Movements affecting our resource stocks today (USD)

• Gold down 0.89% to $1996
• Paper Silver down 0.61% to $23.135
• Platinum down 0.35% to $916
• Copper down 1.2% to $3.78
• Brent Crude up 0.33% to $76.09
• Iron ore down 0.5% to $134.09

Asian Market Update

Japan up 1.5%, Hong Kong down 0.8% and China put on 0.74%

Hang Seng briefly fell below 16,000 points yesterday - tough times continue over in the financial district of Hong Kong.

Global Market Update

US Market

DOW up 157 points to 36,404

Shares in department store operator Macy's rallied 20% after receiving a $5.8bn takeover bid from Brigade Capital.....Macy's topped out at around $64 in 2014 but Amazon has been chewing it to pieces ever since.

"Hahahaha $5.8bn for department stores...They don't understand I won't stop until the world is one big fat AI run warehouse. I know what's best for humanity!"

European Markets

Germans up 0.21%, Brits dipped 0.13% and Frenchies put on 0.33%

Giant copper/platinum/iron ore miner, Anglo American shares hit a fresh 52 week low in London as the market is not happy with it's future production expectations.....The stock does looks very CHEAP on paper, but with heavy exposure to South Africa the risks are through the roof.....You are not going to believe the South African mining story I'll put in my report tomorrow.

Like pulling teeth for shareholders this year.