Australian Investment Blog

**David Jones (DJS) receives $4 takeover bid from South African Woolworths - a 25% premium from last close at $3.19**

Resource stocks ignoring recent offshore weaknessSince BHP announced a potential asset spin off on 1st April, the stock has rallied $2, or almost 6%. We stated at the time that although I was long term negative BHP, a stock that is unchanged over the past 7 years, it had now become a “situation stock” and as such I had become neutral. However, the sector in general has been strongly led by my preferred pick Fortescue Mining (FMG) – I wish I had bought it for yet another time this year! Also catching my eye is the chart of Vale in the US, the largest Iron Ore producer in the world, after falling over 65% since 2011 it looks to have bottomed. I have been a little surprised by the strength in the sector recently, but the BHP news obviously helps and perhaps also X2 Resources raising up to $3.75 Billion to purchase mining assets has triggered some buying interest. Longer term, I am not an investor in this space as China does concern me but medium term investing / trading opportunities will continue to arise.