The world is a difficult place for phone companies. The margins and profits for companies like Telstra in earlier years were based on an environment that no longer exists.
Times will change, but not in 2006. It's not so easy for phone companies like Telstra to make money like they used to. They're a hard sell to investors.
Investors are set to close out the year with good gains.
Figures like these are reassuring for the global companies here. Nothing about the U.S. is concerning for us on this side of the globe right now.
I simply don't think that resources shares have priced in all of the potential for even further commodities price hikes yet.
Earnings growth is still in the pipeline for next year and commodities forecasts are being revised up, so no one is willing to pull the plug on resources stocks just yet. Some of them are in play, so there's added incentive to buy gold stocks.
It's mostly a function of the aging population, the increased spending of people over 55 on health, the whole skew in society toward litigation and the need for extra tests. If you happen to be the company that's doing the tests, well that's good for your revenue.
With commodities prices still firm, these stocks should continue to benefit for some time. Commodities stocks have been leading the charge the past quarter.
The big-picture fundamentals for commodities stocks is still in place. Nothing has actually changed. The sell-off in some sectors was not warranted.
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