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A fright for investors over new rules

Woolworths and Wesfarmers’ liabilities will double, and Myer’s liabilities will treble in 2019 – not because of a major acquisition but because of new accounting rules (AASB 16 Leases).    Putting this in very simplistic terms – companies that rent space to sell their goods, record that rental expense in their profit and loss account with other expenses such as wages, electricity etc.    However, they would very likely have entered into a lease agreement for a 5 or 6 or even 10-year lease, and it is this commitment that up to now has not been reflected in the accounts of the operator.    Companies are now being forced to bring operating leases onto their balance sheets for the first time, from January 2019.    Whilst the new accounting standard will improve transparency it will also have a major impact on key financial metrics such as gearing ratios and return on invested capital, as the present value of leases will be represented on the balance sheet as an asset and liability. It becomes a bit more complex as companies have [...]

By |2018-09-10T12:25:34+00:00September 10th, 2018|PIG, Uncategorized|0 Comments

What to do about franking credits

Marcus Today 30th August, 2018 In March this year Bill Shorten pledged that should Labor win the upcoming election they will axe cash refunds for excess imputation credits paid to individuals and in superannuation funds. This would reverse the cash refund of imputation credits introduced by John Howard two decades ago. It would also be introduced with no grandfathering or transition arrangements. Malcolm Turnbull rejected it as a “cash grab”. The removal of Malcolm Turnbull means the Liberals can renege on that position and even adopt the changes should they feel it politically expedient. Read the complete article here:

By |2018-09-06T12:29:13+00:00September 6th, 2018|PIG, Portfolio|0 Comments

RBA, analysts warn of ‘ticking time bomb’ on mortgage stress

The Reserve Bank has raised the spectre of widespread mortgage stress against a backdrop of high household debt, rising home loan rates, declining home prices and years of irresponsible lending by banks. The RBA, which revealed that the official cash rate would remain on hold at 1.5 per cent on Tuesday, flagged a potential rise in mortgage arrears.“Banks’ large exposure to a potential deterioration in housing loan performance is expected to remain a key issue.

By |2018-09-04T20:53:39+00:00September 4th, 2018|Uncategorized|0 Comments

Cannabis Update

I have not researched Ecofibre and don't know anything of Barry Lambert but this article has all the hallmarks of pre IPO broker spin. Rugby celebrity associates (potential Directors), China market interest (big as A2 milk), hemp a superfood !!! Lets tease it some more at the next PIG meeting. Regards Roman

By |2018-09-04T05:55:13+00:00August 27th, 2018|PIG|0 Comments

ASX Lithium stocks: Should you invest in these companies?

It is no secret that Australia’s Lithium stocks have staged a spectacular run of late. The share prices of miners such as General Mining Corp (GMM:ASX), Pilbara Minerals (PLS:ASX) and Neometals Limited (NMT:ASX) skyrocketing several hundred percent. https://www.australianstockreport.com.au/asx-lithium?campaignid=819500343&adgroupid=44644641800&gclid=EAIaIQobChMIhs6hy42l3AIVRUgBCh0-2Q3wEAEYASAAEgLvU_D_BwE

By |2018-08-28T21:12:12+00:00July 17th, 2018|PIG, Portfolio|0 Comments

Jobs and billions on the table if WA gets ‘Lithium Valley’ right

Western Australia stands to gain 93,000 jobs and a $56 billion shot in the arm of its economy by 2025 if it expands its lithium and new energy metals sector beyond just exports. Regional Development Australia's Lithium Valley report outlined the impending lithium battery boom and how WA could capitalise on it by becoming a centre for processing battery minerals, making them, using them and recycling them. The report found Australia misses out on 99.5 per cent, or $213 billion, of the potential value of its lithium assets because it doesn't have any downstream processing like electrochemical processing, battery cell production or product assembly. The state has plentiful lithium reserves and supplies of every other metal required for battery production like cobalt, manganese, vanadium, nickel, copper, tin and rare earths. The report called for WA to become a 'lithium valley' in the same way California became a hotbed for the world's biggest software and technology industries, known as Silicon Valley. https://pro.portphillippublishing.com.au/p/u6asicannabis/EASIU7CG/?a=20&o=24347&s=68768&u=774966&l=983353&r=MC2&vid=HLhWE3&g=0&h=true

By |2018-07-28T13:16:20+00:00March 18th, 2018|PIG|0 Comments