Report Cover Page

Contents

Where are we in the Cycle?
Despite ongoing worries about global growth, the cyclical position of metal prices has improved further in the past week although it remains below average this far from the most recent peak in prices.    More...

Market Directions
Equity prices have been encouraged higher by expectations of lower interest rates or more prolonged periods of low rates. Gold prices have benefited but historically high gold equity response rates are likely to decline.    More...

Portfolio Performance and Positioning
Strong gains across all development categories in the past week resulted in a 4% benchmark gain and a 3% gain in the macro portfolio model. There were no portfolio changes initiated. Cash positions have remained high in line with the PortfolioDirect cyclical guideposts.    More...

Stock Reviews and Rating Analysis
Kasbah Resources (KAS:AU) has displayed all the elements typifying the cyclical conditions facing the mining industry over the past five years: a project ready to go, a 95% fall in share price and a horrendously high cost of capital stifling development. With a 67% share price rise over five days, Kasbah is now displaying the bottom of the cycle leverage which, one by one, companies with an underlying value proposition produce as the cycle progresses. The timing of the move higher among these companies depends less on company specific events under the control of management than on seller exhaustion over which they exert little influence. Queried by ASX, Kasbah highlighted the removal of a share overhang as the catalyst for its large share price rise. Now for the next challenge: implementing a strategy to maintain the flow of new investors so as to sustain the higher price.
For company reports & ratings...

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.

All opinions and estimates in this communication constitute judgments by E.I.M. Capital Managers as of the date of this communication and are subject to change without notice. The publisher is under no obligation to make public any change in view about any matter referred to in this or any linked documents.

No references to past investment performance should be taken to indicate anything about future performance.

This communication is directed only to Australian wholesale investors and licensed financial advisers for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of a security.