CNB 1.32% 38.5¢ carnaby resources limited

I like the idea but I personally think that at this point it's a...

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  1. 2,592 Posts.
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    I like the idea but I personally think that at this point it's a bit of a dream.

    BHP is a mega cap company. Whilst it needs more resources it can also afford to pay up big, take Oz as an example. It doesn't pay in the realms of speculation.... It takes what it needs and it pays the money it has to make more money from what it buys.

    BHP simply isn't in the speculation end of town, which we are in.

    On saying that, the resources sector has been woefully under funded for a decade. As a result, the likes of BHP needs to buy up new potential to secure it's future cash flow. So, if we see a significant change in strategy then we might see direct involvement from the behemoth. In my view, unlikely, particularly this financial year, but I would love to be wrong.
 
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