BHP has been well & truly walloped 32% in just 2-months, its no surprise the ASX200 has slipped from its August high, but we believe things are overcooked with the “Big Australian” as it used to be so fondly referred to on the old trading floor. Copper and oil make up around 30% of the companies revenue and things are looking solid on these fronts, the aggressive fall has been due to a combination of factors i.e. iron ore, the consolidation of its listings and a planned migration from oil to potash over the coming years – in our opinion the share price is cheap at current levels.
Importantly we have been discussing potential “punts” in Fortescue (FMG) under $14, a move that we indeed still believe will bear fruit but from an investment perspective we prefer BHP and are very unlikely to be switching unless the price differential between the 2 stocks skews massively out of line.
MM remains positive BHP
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