The approval of three new casino licenses, a $15 million Government funded marketing campaign for the Gold Coast and investment in infrastructure is evidence that Campbell Newman is doing all he can to position The Sunshine State for improved economic activity. David Poppenbeek, Head of Australian Strategy at K2 points to Bank of Queensland as one of their top 10 portfolio positions and says, it is a logical way to play a recovery in east coast cyclicals. The recent improvement in property markets has enabled BOQ to divest some of the riskier assets as buyers have emerged over the past 6 months. Add to this the improving credit markets and BOQ now has the ability to improve margins. Poppenbeek notes tourism and infrastructure spending as significant factors in helping Queensland recover from what has been a challenging period and believes that BOQ is an obvious beneficiary.
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