Yong-Long Lai

Reason
The US market did very well yesterday night and the Australian market followed, although the Australia market did not close on a high I believe due to the world market sentiment the Australia market will perform well for next week.

CTX (Caltex) – the price dropped heavily due to poor production performance reported a few weeks back. Nothing else really changed on the stock apart from the underperforming production reports. They still have the same number of employees and factories so they should fix up their problem and perform well for the future. I only see this stock going up, plus its trading at support levels

LGL (Lihir Gold) – Gold prices usually move together with Oil prices, the prices of oil has been running for a long time and the gold prices hasn’t followed. LGL is very exposed to the gold price and a good vehicle to use to be exposed to gold prices. LGL has been trending upwards (slowly) for the past year… more like side-way with a tilt towards the bullish side. There’s plenty of support on this stock and should perform well in my portfolio.

The Trade – 13th July 2007
Buy 500 CTX @ $24.924 ($12,462)
BUy 4,000 LGL @ 3.186 ($12,744)