Billabong (BBG.AX)

I took a small dip on Billabong today at $3.22. Feels a bit gingery already :)
Nobody knows what is going to happen in the near future.  Billabong share price has been hammered by many events lately. Negative sentiments on retail, euro debt crisis, broader economic slowdown, etc..etc.. to name a few.  My aim in owning BBG shares is mainly for dividend purpose.  It will go ex dividend on the 19th September, with dividend payout of 13 cents per share.  It will make a nice 4% return.. IF the share price is not going to tumble.

According to an article in Sydney Morning Herald, Analyst at Macquarie have an outperform recommendation on Billabong with a 12 month target price of $7.50. This means, that if they are correct, I will double my money in a year time. That sounds good, but then again.. How little we know.. Those analysts are too often making mistakes.

Job Cut

Strong Australian dollar and poor business environment keeps creating a havoc in many Australian companies. Apart from the mining industry, many businesses in Australia are suffering. Manufacturing sectors has shrunk dramatically and continue in the struggle street. Most recently, this has been accompanied by job loses.
Last week, Australian employment rate increased to 5.1% from 4.9%.  While the number is still very low, this has just shown that things are not as good as what Wayne Swan wants us to believe.

In recent weeks, you can hardly read the news without noticing a job cut announcement in the business news section. Here are some of them:

• Qantas is planning for 1000 jobs cut.
• One steel cuts 400 jobs from manufacturing
• BlueScope may cut 300-500 job direct and maybe twice or even thrice indirect from Port Kembla.
• SPC Ardmona will cut 150 jobs in the Goulburn Valley over the next 12 months
• Penrice Soda announced it would axe 25 of its 265 workers
• Channel Ten (TV) cuts 170 jobs from its news and sales division.
• ABC Television, job cuts number unknown.
• Tasmanian government announced 25 middle management position in Health job will go 
• Heinz Factory at nearby Girgarre - 140 job loses
• ACL Bearing, car part manufacturer from Launceston is sacking up to 35 workers over the next two weeks after more than 100 redundancies in 2009
• Brisbane City Council to cut 50 development jobs
• How many from construction industry?
• How many from retail?
• And the list going on and on.

The Big Falls

This post has little thing to do with my ASX investment, but I've just read an article about housing in Australia and love the image they put on it.
Here's the link to the article:
http://www.news.com.au/money/david-and-libby-koch/koch-beware-of-property-porkies/story-fn7kicty-1226065440533

Pharmaxis Run