BHP traded ex-dividend yesterday with the share price closing over 20% below its July high – the combination of tumbling iron prices, a $5.7bn investment in Potash, unification of its’s listing structure and BHP’s planned petroleum demerger with Woodside (WPL) has weighed on the share price in a major fashion. Interestingly both BHP and WPL are down heavily over the last month i.e. WPL -9.5% and BHP – 20.8% (ex-dividend). The strange factor being there’s usually a winner & loser in such corporate moves but in this case the market looks to be saying everyone loses.
At MM we don’t agree and would be buyers of BHP if we had no existing exposure although sentiment may take a while to improve. We like the company’s direction plus allowing environmentally focused investors to exit petroleum while relieving BHP of the necessary huge investment schedule over the coming years feels a positive.
MM is bullish BHP under $45
Add To Hit List
