sally malay mining

Top 200: Movers and Shakers 29 JUNE 2007
Top 10
ASX Code Company Name Market Cap
Last week’s
price ($)
This week’s
price ($)
CSM Consolidated Mineral 653.6 2.84 3.14 10.6
IPL Incitec Pivot 3846.0 72.50 79.70 9.9
WOR WorleyParsons Ltd 5371.2 31.00 34.00 9.7
BKN Bradken Limited 1077.3 9.89 10.70 8.2
AWB AWB Limited 1422.9 4.10 4.31 5.1
ABC Adelaide Brighton 1149.9 3.50 3.67 4.9
ENE Energy Developments 486.5 4.30 4.50 4.7
TPI Transpacific Indust. 2102.8 12.80 13.36 4.4
IVC InvoCare Limited 583.0 5.97 6.21 4.0
WES Wesfarmers Limited 17385.5 44.01 45.73 3.9
Bottom 10
ASX Code Company Name Market Cap
Last week’s
price ($)
This week’s
price ($)
201 CDR Commander Communica. 338.1 1.44 1.19 -17.4
200 CMR Compass Resources NL 486.4 4.70 4.19 -10.9
199 PEM Perilya Limited 763.8 4.89 4.37 -10.6
198 LEI Leighton Holdings 5698.3 45.94 41.25 -10.2
197 FMG Fortescue Metals Grp 4159.7 37.35 33.80 -9.5
196 AOE Arrow Energy NL 1297.7 3.07 2.80 -8.8
195 PDN Paladin Resources 5132.6 9.03 8.26 -8.5
194 ERA Energy Resources 1243.9 20.89 19.18 -8.2
193 SGP Stockland 11313.7 8.85 8.15 -7.9
192 KZL Kagara Zinc Limited 1351.0 6.91 6.38 -7.7
Produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this report is correct and any opinions, conclusions
or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law,
neither Commonwealth Bank of Australia ABN 48 123 123 124 nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.
The report has been prepared without taking account of the objectives, financial situation or needs of any particular individual. For this reason, any individual should, before acting on
the information in this report, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek
appropriate professional advice. In the case of certain securities CBA is or may be the only market maker.
This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 a wholly owned but not guaranteed subsidiary of Commonwealth Bank
of Australia. This report is approved and distributed in the UK by Commonwealth Bank of Australia incorporated in Australia with limited liability. Registered in England No. BR250
and regulated in the UK by the Financial Services Authority (FSA). This report does not purport to be a complete statement or summary. For the purpose of the FSA rules, this report
and related services are not intended for private customers and are not available to them.
Commonwealth Bank of Australia and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this

Point of view – Transpacific Industries Limited and All Ordinaries
15-Jun-06 15-Oct-06 15-Feb-07 15-Jun-07
Percentage change
All securities adjusted to a common base.
Transpacific Industries Limited – Transforming waste management
Transpacific Industries Limited (TPI) provides integrated industrial cleaning and total waste management solutions to
customers across Australia and New Zealand. While it may come as a surprise to potential investors the waste
management sector has three key attractions from an investment perspective:
•Waste grows faster than Gross Domestic Product (GDP), ie economic growth. Waste per capita is estimated to
have increased by 4-5% pa over the 10 years to FY05. Drivers of this have been rising wealth levels and falling
household size, which are expected to continue.
•There are high entry barriers in waste disposal. Landfills offer high profit margins (circa 45%). The private sector is
also positioned to win more outsourced work from municipalities (it is estimated that State governments and
councils own 50-60% of landfills).
•The market economics support consolidation of commercial waste collection because combining two waste
collection businesses offers route density benefits.
TPI is the dominant player in the fragmented market. It is estimated to have a 29.1% share of the Australian waste
management market. But there are still 1100 businesses in the industry, with 74% having fewer than four employees.
TPI has been mopping these businesses up at attractive multiples (~5-7x earnings before interest tax and amortisation
(EBITDA), compared to its own multiple of 9.8x, making the acquisitions earnings per share accretive).
The company has the opportunity to target further bolt-on acquisitions in the SME commercial and industrial segment
and leverage further synergies. SMEs are the cream to target because they provide the most attractive profit margins.
CommSec believes TPI’s large internal mergers and acquisitions team will continue to find acquisitions at attractive
TPI has $500m available for acquisitions through its debt facilities. It could spend up to $150m pa to acquire waste
management businesses over the next three years. Doing so could add significant shareholder value and further drive
strong growth in earnings per share.
Adrian Lemme
Industrials Analyst

Australian market wrap
Index Weight
View Comment
Discretionary 5.9% Overweight Recent Budget was mildly positive for retailers, childcare
centre operators. Some media consolidation still possible.
Consumer Staples 6.4% Indexweight Coles still in play. The Budget was mildly positive for
consumer stocks. But the sector is well priced.
Energy 5.1% Indexweight Upside risks remain for oil prices, especially refined
Financials 32.0% Indexweight Risk of rate hike remains, despite good inflation data.
Housing market to begin modest recovery later in 2007.
Health Care 2.7% —
Industrials 9.7% Indexweight
Mixed prospects. Valuations stretched in a number of areas
but construction and mining-focussed areas retain solid
Technology 0.6% —
Materials 21.5% Overweight
Building material stocks supported by record engineering
work and prospects for housing recovery. Mining stocks
underpinned by strong global demand, low inventories.
Real Estate 10.3% Negative Sector is expensive and offers a relatively low dividend
yield premium compared to historical average
Services 3.7% Indexweight Outlook dependent on 3G take-up and trends in margins.
Utilities 2.2% Underweight
Interest buoyed by merger & acquisition activity. But
investors still adopting growth, rather than defensive
Market summary
After falling into negative territory earlier in the day, the Australian stock market recovered on the back of stronger metal
and oil prices.
Early this week Bank of Queensland (BOQ) continued its downward trajectory since Bendigo Bank (BEN) rejected its
revised, informal bid last Thursday. BOQ has been able to remain momentum, gaining 1.05% to close the week at
Macquarie Bank (MBL) shed 1.05 to $85.00, amid concerns earlier in the week about its exposure to the US financial
sector, which has been under pressure due to Bear Stearns Co. Inc.’s (BSC) hedge fund troubles.
Publishing & Broadcasting (PBL) shares finished up 0.9% to $19.60 on the back of news that Hostworks had signed a
new three year deal with ninemsn. PBL will provide technical infrastructure to ninemsn’s web portal.
Coca-Cola Amatil (CCL) declined during mid-week due to the continuing deterioration at its South Korea unit and the
12% growth forecast for the first half of 2007 being below market expectation. CCL has recovered, rising 2.1% to end
the week at $9.54.
A private equity consortium led by Texas Pacific Group has confirmed that it will not be bidding for Coles Group (CGJ)
as the June 30 deadline approaches. Wesfarmers (WES) is the remaining bidder for the whole CGJ business, in the
country’s biggest takeover. Shares in WES rose 2.1% to $45.73 as the market believes the chances of WES acquiring
CGJ has increased. CGJ shares were down 0.1% to close at $16.12, below the $16.47 per share offer from WES.
Billabong (BBG) was also a strong performer, after an upgrade of its valuation today. There are increased expectations
of its performance in the near future, due mainly to the size of the global board sports market, which is increasingly
gaining preference within the core youth market. Billabong rose 1.1% to $17.95.

Economic signposts
Economic forecasts
Economic growth (ann %) 2.6 2.7 2.8 3.5
Inflation (CPI, ann %) 2.4 3.2 2.3 2.5
Unemployment rate (end June %) 5.0 4.9 4.3 4.0
(June 29 2007)
End Sep
End Dec
End Mar
90 day bills (%) 6.44 6.42 6.35 6.35
10 year bonds (%) 6.26 6.35 6.25 6.10
AUD/USD 0.8506 0.8700 0.8800 0.8600
All Ordinaries index 6310.6 6450 6600 6800
An interest rate decision by the Reserve Bank heralds the start of a new month, quarter and financial year. The good
news is that it is all but certain that rates will be left on hold for the eighth straight month. But with Census data
confirming that more people are paying off mortgages, there will be plenty of Australians watching for the latest news.
The Reserve Bank Board meets on Tuesday with a decision announced at 9.30am AEST on Wednesday morning. But
apart from the interest rate decision, there is a fair spattering of economic data to watch. On Monday, the Performance
of Manufacturing index is released together with the inflation gauge, followed by retail trade and building approvals on
Tuesday. The latest trade figures will be released on Wednesday together with the Performance of Services index and
car sales. Data on tourist arrivals and departures is issued on Friday alongside the Performance of Construction index.
The Reserve Bank Governor certainly can’t be accused of leaving people in the dark on interest rates, saying a fortnight
ago that he had time on his hands before deciding the next move. Rates are set to be left on hold on Wednesday,
meaning that attention will then shift to the release of inflation figures on July 25. But with the annual headline rate likely
to fall to 2.0 per cent and underlying inflation to 2.5 per cent, interest rates are poised to stay on hold for a good deal
In terms of the economic data releases, we expect that retail trade rose by 0.7 per cent in May, after a soggy 0.1 per
cent gain in April. The prospect of interest rate hikes, warm autumn weather and higher petrol prices constrained
spending in April. And while petrol prices were still on the rise in May, interest rate fears had dissipated, and news of tax
cuts would have lifted confidence. In addition, department stores and clothing retailers were forced to discount stock in
May in response to record warm temperatures.
The number of building approvals probably rose by only 1 per cent in May, keeping approvals below the levels of a year
ago. The bottom-line is that we are still not building enough homes and apartments to meet the demands of the growing
population, exacerbating the housing affordability problem.
And Australia is on track to post the 62nd consecutive trade deficit with the shortfall in May likely widening to $1.4 billion.
The drought certainly can’t be blamed for our trade woes as rural export receipts have gone sideways for four years.
Rather it is a case of new imported equipment not yet paying off in higher export receipts, together with higher oil
In the US, the highlight in the coming week is the latest non-farm payrolls data or employment report, to be issued on
Friday. Job growth has been solid, but not spectacular, in recent months, restrained by weakness in the housing market.
Payrolls probably rose by 120,000 in June, in line with the average of the past four months, but below the 157,000 gain
in May. The jobless rate is tipped to remain at 4.5 per cent with hourly earnings rising by an inflation-friendly 0.3 per cent
in June.
Of the other data releases, indicators to watch include the ISM manufacturing index on Monday and ISM services index
on Thursday. The manufacturing gauge probably fell from 55.0 to 54.0 in June with the services gauge down from 59.7
to 58.0. But with both readings still above 50.0, suggesting that both sectors are still expanding, the latest figures will not
be viewed with undue concern.
Craig James
Chief Equities Economist

Corporate and economic calendar – week beginning 1 July 2007
Coming week’s economic news Ex-dividend dates
Australia July 3 RR Australia Limited RRA 0.97 cents
July 3 Retail trade (May) July 3 Tutt Bryant Group TBG 3 cents
July 3 Building approvals (May) July 5 Programmed PRG 10 cents
July 3 Reserve Bank Board meeting
July 3 International trade (May)
July 2 US ISM manufacturing (June)
July 5 US ISM services (June)
July 6 US Non-farm payrolls (June)
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The ageing population in Australia and New Zealand continues to grow. This increase is driving a demand for Senior
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Babcock & Brown Communities Group (BBCG) represents the consolidation of three significant Senior Living
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This is an opportunity to invest in an integrated Senior Living business, which is expected to deliver an attractive income
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Potential highlights
Australia’s largest “pure
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Diversified portfolio of 61 Senior Living communities and 18 under development across Australian
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Strong growth prospects Organic growth through owned development pipeline of 2,110 Retirement Village units, with
acquisition opportunities as the consolidating vehicle of a highly fragmented market.
Attractive forecast yield Annualised distribution yield of 8.0% in FY08.1 Yield is expected to be 100% tax deferred for at
least the next three years.
Unique exposure to
retirement property market
Stable and largely government-funded Aged Care revenue, with favourable industry dynamics due
to an ageing population.
Management expertise The combination of Babcock & Brown’s experience as a Senior Living adviser and investment
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1 Annualised yield based on Main Offer Price and on period from Allotment Date (expected to be 3 August 2007) to 30 June 2008.
All investment involves some risk. There are both general and specific risks involved in investing in BBCG and its
assets. Details of risks are set out in Section 8 of the prospectus and product disclosure statement dated 15 June 2007
(together referred to as the Offer Document). Before applying for Stapled Securities, prospective investors should
consider whether an investment in BBCG is a suitable investment for them.
Find out more
Please visit for more information about this investment opportunity or to obtain a copy of the Offer

Important Notice
Capitalised terms in this document have equal meaning to the capitalised terms in the Offer Document.
Commonwealth Securities Limited, ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the
Commonwealth Bank of Australia ABN 48 123 123 124 (Commonwealth Bank) and a Participant of the ASX Group.
The information contained in this document should not be taken as a recommendation to invest in BBCG. The information has been prepared for
general information only and not having regard to a particular person’s investment needs, objectives and financial situation. Before making a decision
you should consider, with or without the assistance of a financial adviser, whether investment in BBCG is appropriate in light of your particular
investment needs, objectives and circumstances. In receiving this document you represent and warrant that you will not distribute this document to
any person outside of Australia.
This document is not an offer document. The terms of the Offer are set out in the prospectus and product disclosure statement (together referred to as
the Offer Document) dated 15 June 2007. The Offer Document was lodged with the Australian Securities and Investments Commission (ASIC) on that
date. We recommend that you read the Offer Document before deciding whether to invest. Applications to invest can only be made on an application
form attached to or accompanying the Offer Document. A decision to subscribe for BBCG should be made on the basis of the information in the Offer
We believe that the information herein is correct and any opinions, conclusions or recommendations contained in this document are reasonably held
or made as at the time of its compilation, but we make no warranty as to the accuracy, reliability or completeness of that information. CommSec has
not independently verified the information given in this document. Except to the extent that any liability under any law cannot be excluded, no liability
for any loss or damage which may be suffered by any person, directly or indirectly, through relying upon any information or statement in this document
is accepted by the Commonwealth Bank of Australia ABN 48 123 123 124 or CommSec or any of their directors, employees or agents, whether that
loss or damage is caused by any fault or negligence on their part or otherwise. Commonwealth Bank and its subsidiaries do not guarantee the
obligations or performance of CommSec or the products or services offered.
Disclosure of Fees
CommSec is a Co-Lead Manager to the Offer and may receive a fee of up to 1.75% on all successful applications lodged by us. CommSec or one or
more of its associates may perform, or may seek to perform, other financial or advisory services for the entities mentioned in this document, or its
associates and may have other interests in or relationships with BBCG or its associates, and receive fees, commissions or other compensation in
such capacities. CommSec or one or more of its associates has received fees, commissions or other compensation from BBCG or its associates in
the past 12 months, and expects to be entitled to receive such fees, commissions or other compensation in the future, including the fees referred to

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