Report Cover Page

Contents

Where are we in the Cycle?
Exchange rates (and related expectations about monetary policy) continue to drive metal prices. On the assumption this continues, the balance of probabilities points to metal price downside.    More...

Market Directions
A shock low U.S. employment gain in May caused interest rate expectations to be revised yet again with resulting exchange rate impacts driving metal and related equity prices sharply higher at the end of the week.    More...

Portfolio Performance and Positioning
Phase I companies followed up strong gains in May with further gains in the past week. Those in Phase III remained weak. There were no fresh portfolio recommendations. Cash positions remain high with Phase II and III portfolio segments below target weights. More...

Stock Reviews and Rating Analysis
Elk Petroleum (ELK:AU) is uniquely positioned among ASX listed companies to access low cost oil through enhanced oil recovery processes superior to conventional recovery techniques, in many ways. Historical management inexperience and poor market conditions have left the company unable to cover the full cost of the historical capital invested in its Grieve property in Wyoming. A modest return on incremental capital is being sought from a restructured joint venture. Lessons having been learned, Elk’s capacity to generate future competitive investment returns and validate the current market value of the company will depend on it being able to successfully manage post-Grieve development opportunities. A PortfolioDirect report has rated the company ‘3’ on the five point rating scale.
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Although the statements of fact in this communication have been added from and are based upon sources E.I.M. Capital Managers Pty Ltd, the publisher, believes to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed.

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