Agree and disagree with you. No doubt the big fella is a goody. I have a modest holding in it ranging from 500 - 2000 shares at any given time. Currently I am running on the leaner end of that range.
As for banks. I reckon they have been ridiculously oversold. They were sold down for good reason but a 1/3 decline in sp! The quotes below are to do with GB banks but the same can be transposed to Australia. Many analysts are saying stuff like ...
``Barclays announcement lifts uncertainty on another big bank,'' said Amandine Gerard, a fund manager at Richelieu Finance in Paris, which oversees $6.2 billion. ``It's good news. The market is more and more reassured about banks.''
``We are seeing value in the banks, they have fallen a lot and they have recapitalized,'' said Jane Coffey, head of equities at Royal London Asset Management, which has the equivalent of $63 billion in assets under management. ``We are probably at the point where the absolute downside over a two- year view is pretty minimal.''...
Morgan Stanley lifted both stocks to ``equal-weight'' from ``underweight.'' The brokerage upgraded the stocks after Resolution Ltd. said it is working with major shareholders of the Bingley, England-based lender, seeking to trump a plan to sell a stake to buyout firm TPG Inc....
``Resolution and TPG's interest shows that investors with a longer-term view are willing to invest in the sector at current valuations,'' (Bloombergs)
Banks are being accumulated now because risk has already been factored into sp. Whereas BHP's sp has not. Many analysts are doing risk assessments as I type factoring this into portfolio management.
Yeah sure BHP is a goody but now presents an excellent time to buy contrarian into Aussie Banks - especially for the longer term.
Sorry to bombard you with a long post but this is an excellent forum on BHP thread that I love to participate in and contribute to. Just take it as discussion point.
regards
Capt. Goodvibes Love Contrarian
Disclosure:- I hold BHP and my fin stock is ANZ. Don't take this as financial advice - DYOR
BHP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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