S&P 500was up by 13.42 points or 0.72% to 1872.25 on Tuesday. U.S. stocks climbed, extending the best two-day gain for the Standard & Poor’s 500 Index in five weeks, as housing data bolstered confidence in the economy and Vladimir Putin said Russia isn't seeking to split Ukraine.

A Commerce Department report showed housing starts were little changed in February after declining less than previously estimated a month earlier, indicating the home-building industry is stabilizing after bad winter weather curbed construction. Permits filed for future projects increased 7.7 percent to a 1.02 million pace in February, the most since October. Crimea voted on March 16 to leave Ukraine and become a part of Russia. The regional parliament called the plebiscite after Ukrainian President Viktor Yanukovych fled the country following protests against his rule. Western leaders condemned Putin’s push to annex the region and promised further sanctions as early as this week. Ukraine’s government said the conflict has entered a military phase as clashes in Crimea intensified, killing at least one Ukrainian serviceman.
 

S&P 500 Daily Chart   (Source – Thomson Reuters)

 
S&P ASX 200 was up 27.0 points or 0.51% and closed at 5344.60 points on Tuesday. Casino operator Crown Resorts is poised to swoop on the remaining 50 per cent of online betting exchange Betfair that it doesn’t already own, increasing the odds that Chairman James Packer is ready to make a major play for the $26 billion wagering market. Southern Cross Media Group says Commonwealth Bank of Australia and its related bodies corporate ceases to be shareholder in the capital of company.

Lend Lease Corporation announced that it has secured a contract with NSW Roads and Maritime Services for the Oxley Highway to Kundabung Pacific Highway upgrade project. The contract value is circa A$580 million.Local stocks followed Wall Street higher in a relief rally spurred by better than expected United States industrial production numbers for February as investor focus shifted away from the Crimean crisis.
 

S&P ASX 200 Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:-
 

Code	Name	Price	Change	%Change
WTF	WOTIF.COM HOLDINGS LIMITED	$2.44	$0.15	6.55%
WSA	WESTERN AREAS LIMITED	$3.54	$0.18	5.36%
ACR	ACRUX LIMITED	$1.80	$0.09	4.97%
PDN	PALADIN ENERGY LTD	$0.54	$0.03	4.90%
MRM	MERMAID MARINE AUSTRALIA	$2.39	$0.11	4.82%

Stock of the Day – wotif.com (WTF)

Wotif.com Holdings Limited is engaged in the provision of online travel booking services. The Company’s brands include Wotif.com, lastminute.com.au, travel.com.au, Asia Web Direct, LateStays.com and GoDo.com.au. Wotif.com is a travel Website at the forefront of online travel. With an enviable accommodation range in Australia and New Zealand, Wotif.com sells hotels, domestic and international flights, and flight-hotel-theatre packages.

WTF appears to be paying the price for years of underinvestment in technology and branding with the new CEO forced to undertake material expenditure at what we consider the worst possible time. This view is based on the fact that CY13 is likely to be remembered as a positive one for domestic tourism with weak economic growth and a lower currency providing generally a favorable set of conditions. It is clear that WTF has been unable to benefit from these conditions with room nights volume in Aust/NZ declining by an estimated 6% in 1H14.




Source - wotif

We believe the combination of softer domestic economic growth, a lower currency and attractive discount airfares provide the most attractive climate for domestic travel since the GFC. The view appears to be supported by the results of the National Visitor survey which indicate a material improvement in Domestic Visitor Nights for Holiday purposes within Australia and Expenditure on these trips during CY13. The issue for WTF is they have been unable to capitalize on this trend with AUST/NZ room nights sold down an estimated 4% in 1H14.


Wotif Daily Chart  (Source - Thomson Reuters)

We see little change in the competitive environment in the short term with both local and offshore booking sites combined with hotels direct internet offerings likely to push hard in an attempt to win share. We believe that the stock is expensive at its current price and would review the stock at a later date.

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