Multiplex’s spectacular stockmarket mauling highlights the risk
investors take in chasing growth without regard for the risk premium
involved, says the AFR’s Chanticleer. The construction giant’s
woes may be company specific but the warning bells should be sounding
for investors next time they are sold the “growth story.”

Stockholders
in General Property Trust and WMC Resources face challenging decisions
which will materially influence their long- and short-term fortunes,
says Robert Gottliebsen in The Australian.
And today he summarises the key issues facing stockholders in both
organisations to help them determine which courses of action best suit
their circumstances.

In the world of Australian commercial
property, Frank Lowy is a master of lurking in the background and in
some way extracting a great cut for his shareholders. One could pit
Lowy against any of his competitors and he would always come out the
victor, says Elizabeth Knight in the SMH.
So the General Property Trust board’s proposal to sell prime assets to
Lowy’s Westfield can’t considered a win-win deal – only a win for Lowy.

Analysts and investors who say they can’t find any value in the market at the moment aren’t looking hard enough, says Alan Kohler in the Smage.
After a 13% correction, peppered by some huge maulings, the small-cap
end looks a cornucopia of value. Likewise many of the resources stocks
– both large and small. In general, good value is easy to find.

The
unseasonably warm and dry weather knocked the sales plans of clothing
retailers for six during April, reports David Bassanese in the AFR.
The figures were so weak that the Australian Bureau of Statistics
undertook verification checks with large retailers, which only
reconfirmed the dismal news. Andwith department stores sales
down 11.3% in April, Myer and David Jones have brought forward their
stocktake clearance to this week and while smaller retailers think it’s
a last resort to discount when winter has barely begun – they’re
prepared to join in so as not to miss out. Also in the AFR,
Coles Myer subsidiary Liquorland has been fined $4.75 million for
harassing its competitors when they applied for takeaway liquor
licences in NSW.

On Wall Street, US stocks ended lower
overnight, but still managed to maintain solid gains for May, with the
Dow Jones up 2.7% and the Nasdaq posting its best one-month performance
since October 2003, amid improving sentiment on the economy.
MarketWatch has a full report here.