When we initiated coverage of Provet with a buy recommendation last month (FAT490), we thought the company had a great story to tell and its stock price did not fully reflect this. It seems we were not alone in this view, with the company last week announcing a takeover offer from America’s Henry Schein, which has an existing North American Animal Health division.

Catalpa’s stock price has performed very well this year, more than recovering the sell-off that we saw into the close of 2009. Gold’s price strength is a factor, but so too is the initiation of production at the miner’s 100% owned Edna May project, which occurred on 15 May 2010. This was the first step in what management expects to be a journey to becoming an established mid-tier gold producer for Catalpa.

The demerger of Tabcorp’s casino business from its wagering and gaming business is a logical and arguably overdue move. The company says it recognises the different opportunities and investment profiles of each business. In our view, the new ‘Tabcorp’ (wagering and gaming) is the business that has contained most of the regulatory uncertainty and risk. The Casino business has a relatively settled regulatory horizon and that is crucial. The massive capital expenditure program underway in the casinos is overdue, but will transform it into the world class business it needs to be to compete with its Asian and Australian peers.

Quite simply, the Queensland Government needs a successful sale of QR National. Investors are being offered an exposure to the strong growth in Asian demand for coal, but are being asked to pay a stiff price, despite the enticements of a discount and bonus shares.

The RBA’s decision to leave Australia’s cash rate unchanged in October came as quite a surprise to some. The minutes of the meeting have revealed that the decision was a close run thing and further tightening is very much still on the agenda. Whether the next rate hike comes in November largely depends on the forthcoming inflation data.