Cricinfo - Blogs - Different Strokes - Investing in Australia

Katich. Hold. Since repositioning in the openers sector, Katich has yielded solidly reliable if unspectacular returns which should continue to satisfy the conservative investor.

Watson. Weak hold. Government has long regarded Watto's as a preferred long-term partner, and early results from entry into the openers sector are reasonably promising, but the bowling division has declined from an already weak position to the extent that it should probably be shut down.

Hussey. Sell. There is considerable loyalty to the Mr Cricket brand, and many will be hoping that the strong performance in the last couple of trading sessions signals a return to previous dividend levels. HCG is less optimistic and regards Hussey as extremely vulnerable to takeover, especially if strong domestic competitors emerge.

M Clarke. Strong buy. Long-standing predictions that Clarke will become as important a force as Ponting seem on the verge of fulfilment, and bumper returns are to be expected from this quarter. Especially fine are the products for the spin-facing niche, which for flexibility and agility rival any of those offered by the traditionally-dominant Asian producers.

North. Buy. Well-engineered batting coupled with some very handy spin-bowling accessories should ensure a prosperous medium-term and make the long-term prospects very hopeful.

Haddin. Weak hold. Those with nostalgia for former giants of the keeping industry such as Gilchrist, Healy or Marsh will continue to regard Haddin as yielding very poor dividends. On the bright side, the batting performs somewhat above lowish expectations, but the keeping is of extremely variable quality. An absence of serious competition in the field means that the stock should be retained pending developments.

Johnson. Partial sell. Investors who piled into the Mitch on the back of exceptionally strong performances in the South African market should seek to reduce their exposure. The sling-based technology is inherently unstable and prone to malfunction while offering the potential for very high returns when it operates correctly. It is worth retaining a holding as part of a diverse portfolio, but not as the main focus of investment.

Siddle. Hold/weak buy. Only a recent market entrant, Siddle has already established a reputation for reliability and should provide very steady returns. Optimists may wish to increase their holdings, but HCG sees little potential for further growth and would advise against.

Hauritz. Buy. This stock was badly underrated and deserves more attention. While not offering the earnings potential of a Warne or a MacGill, failure to include this stock can in some circumstances result in catastrophic losses.

Hilfenhaus. Weak sell. This may seem an odd recommendation given that the Hilf was the leading performer in the last reporting period, but similarly swinging trading conditions may not be encountered often enough for him to continue to lead the market.

S Clark. Sell. A loss of oomph in the main power unit has rendered this product line largely ineffective unless the targets are already on the brink of failure. It will be of very limited usefulness going forward and there is little chance of an improvement in the stock price. A more likely option would be the Lee, but it has been absent from the market for some time and future performance is therefore uncertain.

To sum up, batting stocks remain relatively buoyant. Returns may be down compared with the historic market highs of the 1995-2006 boom years, but they remain in the market's upper quartile. However, bowling stocks have fallen significantly, particularly when compared with South African equities, and considerably improved performance will be needed from them if Australian industry is to resume its world-leading position.

Our next report, to be published shortly, will be a survey of the English market.

interesting analysis and i agree with most except haddin. i cant have been the only one to notice the supurb work done by manou behind the stumps in the third test. it was like a breath of fresh air over the more fumbling styles of the more batting oriantated keepers haddin and prior. yes haddin may be a more accomplished batsman than manou but if haddin makes 30 runs with the bat then concedes 20 odd byes behind the stumps is that better than having a genuine keeper in the team that is a keeper first and a batsmen second? i for one would like to find out and cant wait to see what payne can offer in the ODI's. i feel for haddin in the way that he was clearly the next best keeper in the country behind gilly, however i think his peak was when gilly peaked and the window closed about the same time gilly's did. australia should be looking for the next healy and unlike replacements for warne and mcgrath im pretty sure that this one exists!

Nice article but wish to differ on the analysis given. 1. Watson - Buy- this will give more returns on both bowling and batting front. Has been out coz of injury. 2. Hussey - Hold- The brand is too strong to let go. Has been unlucky from the umpring side but could see even with low scores Mr Cricket was playing his best. He is the grafting type and it's all there for a very reasonable return on investment. The time is now. 3. Siddle - Buy/Keep - Lots of energy and assures investors of a competitive player, returns coming and will continue to come. 4. Hilhenaus - Buy/Keep offers a balance to the investment. 5. S Clarke Keep- under the current environment this is an asset that needs to be kept. Lots of experience and control. He is a type that does just the bowling and does it well, economically too. Summary- Despite the loss to England the Australian market is still the one to invest in. High turnover in the past few seasons has meant that more assets be brought in and compelement

Let me also add that Australia is still the best. It was interesting to hear Graeme Smith say that now that SA is on top of the rankings they hope to dominate the world. Crap, if you want to dominate the world, beat the best and dont wait for England to do your job. Yes, as soon as the Aussies beat Pakistan and West Indies in australia everyone will be putting praises to them and describing how invincible and exhibitional the Australian side is. Of course everbody wants to see the best out of the palyers but the team is rebuilding and is doing a great job already. Lets be fair, England were whitewashed in Australia and now australia loses 2-1 everybody describes them as losers. Sis, hypocritical, that sucks. These guys are a world dominating force. I find Ricky Ponting as an amazing leader and has done the aussies proud. In fact that whole bunch of guys is an amazing lot. Oh by the way M Johnson held his head and hand up high, he did not stop trying, a sign of a true champion!

James..Australia are NOT, by some distance, the best team in the world. That honour does not really belong to anyone yet - SA still keep losing big tournament matches and India have shown that they are great challengers but poor champions. But it certainly cannot go to Australia. This is not because of one series loss - Australia have now lost in India and England over the past one year, apart from a narrowly averted whitewash at home against SA, and performed poorly in the World T20, besides having lost the CB series to India. And I am, personally inclined to believe that the scoreline could have been 1-1 in the Border-Gavaskar trophy had so many umpiring decisions not gone against India. In any case, the decline of the Aussies is far from temporary, because unlike the trough in a batsman's career, here the very players representing Australia have changed. Yes, Johnson is full of heart, Hilfenhaus and Siddle and Hauritz are good and may yet improve, but they are not Warne or McGrath.

Also let me add, James, that Ponting, in my opinion, was a really good captain when he had 4-5 players in the team who could rival him for cricketing greatness. That 1995-2007 team was simply terrific, too good. I am not so convinced about his captaincy when the chips are down. He often seems confused and desperate when Australia are struggling. The decline of Australia has been because of a combination of retirement of their greats coupled with South Africa and India getting better and better. India, especially, have had an ultra-slow ascent since the 80s, when they were poor, to the 90s, when they were average and depended heavily on Sachin Tendulkar, to the early 2000s when they first started being good, to the mid 2000s where they started winning consistently, to 2008-09 when they have started winning series after series without taking it into the last match. The new Australian crop might come good in time; for now, Aus have been dethroned and we'd be loath to deny it, I believe.