Morning Report Thursday 25 February 2016
BHP plunges & investors attention focuses on property
In today's report, we want to cover the following big issues BHP Billiton, the Australian housing market, the banks, plus we will touch on the U.S Market.
Market Matters are a market leading advisory service, to subscribe to their free newsletter click here
BHP Billiton (BHP)Yesterday BHP plunged the most since 2008, falling to 8%, and it looks likely to open down ~3% today at $15.70. After exiting our short term BHP position over $17.50 on Tuesday a few subscribers thought we might be considering buying back into this current sell-off, but we are looking to be cautious here given the current price action. Medium-term the cutting of the dividend and the holding back of some cash for potential acquisitions is a positive and could be the catalyst for the stock to move higher if oil and iron ore hold up, but short term our view is summarised below.
Show more...
