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THE ECONOMY

Whoever wins the US Presidential election this month will bring with them a slow down in the US economy. This will see a rise in the Aust $ value therefore the comments set out below in last months letter still apply.

The Australian economy is very strong.

If you are looking for a bargain investment buy Australian Dollars, or better still invest in Australian Property.

Why the Au $ is at its present low value has all the financial wizards scratching their heads. Buying Australian property with US Dollars at the moment equals a discount of 25 % in a strong commodities and property market. This is an unusual combination.

THE STOCK MARKET

Last month I predicted a hic-up in the market and I doubt the ups and downs are over yet. Take care and good luck.

TOURISM

Thanks to the Games tourism is booming at the moment and indications are that many visitors intend returning.

With the AU dollar at its current level overseas visitors receive exceptional value for their money.

The spring horse racing in Melbourne rates as one of the top events in world horse racing . I rate the Melbourne Cup as the best horse race in the world.

I have attended racing at Lexington, Saratoga and Arlington in the US and Epsom, Ascot, Newmarket plus a number of other racecourses in the UK and Ireland. So I am able to compare these with our racing in general and the Melbourne Cup is a very special horse race.

The outback and Northern Australia are wonderful from May until September and Southern Australia from September until May.

WONDER OF THE WORLD

The Outback area of Australia have been declared one of the wonders of the World. Now we have 2002 being declared The Year of the Outback. If you intend to visit Australia at some time in the future, try and make it during the period between March and September 2002. For more information check out the new Outback web page

CARBON CREDIT NEWS

Very little attention has been given by the media to CC's over the past six months but things should warm up as time is catching up on those that wish to obtain credits by 2002/4. Companies or private parties that wish to invest in trees or buy credits should contact me as soon as possible. There are a number of planned and proposed projects around that are not moving due to a lack of support and direction from government or industry.

I have no doubt that CC trading will be as big as the IT share scramble was. The potential trading in CC's will be better than $100 million world wide. Australia is very well placed to form the base for these trades but must get off it's butt and get projects up and going.

CATTLE REPORT

Cattle markets remain strong and should continue over the next two to three years. Cattle through the meat works are running at record numbers in Queensland. Live exports continue out of all states but supply out of Darwin may suffer a shortage of preferred weights which may see more stock being shipped out from the Eastern Seaboard.

DID YOU KNOW???

That one hectare of three year old, Old Man Saltbush will remove 20 tonnes of Carbon from the air per year.

The US exports 8.4% of its total beef production, Australia 64%.

There is a labour shortage in US meatworks, wages are below the national average and likely to rise.

Large areas of cattle country in the U.S. have been taken out of production to cater for public use.

Ted Turner is the biggest landholder in the US, much of it former beef country now used for public entertainment and raising exotic animals.

There is a very strong possibility of large areas of public owned range land in Dakota, Wyoming and Nebraska being restricted to cattle grazing by up to 40% This along with the present world wide controversy surrounding G.M.O crops, (some grains from these crops are being fed to cattle), augers well for Australia's clean green beef export future.

PROPERTY SALE NEWS

Bolwarra was sold for $7 million to a local partnership. This property of 557,210 acres can carry 25,000 head, offers low cost production in a very strong, stable area 200kms inland from Cairns. Included in the sale are 20,000 head of cattle (14,000 quality breeders) plus all plant and equipment. This sale price equates to $350 per head for the cattle included. Using this as a guide the asking price for MOOLA BULLA is a little high.

Moola Bulla in the Kimberleys West Aust. is for private sale at $17 million. This large holding, 1.6 million acres is carrying approx. 34,000 head of cattle. This property was offered for sale by tender about five years ago but struck problems with native land rights. I believe this problem has been solved. The property has many attractive features suitable for a tourism business alongside the cattle operations.

The first part of the National Mutual (AXA) properties have been listed for sale by tender. Located in the lower South Western corner of West. Aust. Comprising a number of properties covering 285,000 acres with a carrying capacity of 540,000 sheep or cattle equivalents. These properties are under good management and can produce grain crops sheep or cattle with areas suitable for timber plantations (Blue Gums). Included in the sale are 18,000 Hereford and Angus cattle with 10,000 calves expected and 125,000 sheep. with 64,000 lambs expected.

The rumor is that these as a group should bring around the $100 to $130 million mark. This is a big operation with good returns that I will not even attempt to put a figure on.

The balance of the National Mutual properties have now been put out to tender. These properties run cattle in Queensland and will I feel be purchased separately. If you wish to know more about these properties please contact me.

The potential for long term investment in Northern Australia is enormous.

If you are looking for a rural property, I can find it for you, inspect it, asses it and advise on the potential it offers.