BHP is currently the largest stock on the ASX with a market cap of $252bn and after touching fresh all-time highs at $50 yesterday morning it’s hard not to be bullish, especially with a forecasted $1 fully franked dividend looming in February. However, while we like “The Big Australian” over the coming years we’re not keen on chasing this initial breakout to new highs.
- We are cautious towards the Resources Sector from a risk/reward perspective over the coming 1-2 months with a bounce by the $US looking likely i.e. a likely headwind.
MM remains long and bullish BHP around $49.75 medium term
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