Another article, by Charlie Aitken.Yes, money in resources in my...

Another article, by Charlie Aitken.
Yes, money in resources in my opinion is currently undervalued. Now although this may not be reflected fully in the share prices in the very short term (with next week bringing with it loads of economic data which bay boost or spook the traders), in the medium term months, we will see both BHP and RIO enter a tremendous incline. And yes, above current trendlines, above historical patterns and more.

"The Australian resource sector is the only place where mass analyst upgrades are occurring and they are a beneficiary of rising long bond rates reflecting global growth. I wouldn't be surprised to see a very violent period of outperformance starting. Perhaps that started today. These are the price targets I expect to be achieved over the next three to six months:

BHP Billiton $37 (today’s opening, $32.45)
Rio Tinto $105 ($91)
Fortescue Metals $50 ($35)
Woodside Petroleum $50 ($44)
Santos $15 ($13.45)
Oxiana $4 ($3.36)
Minara Resources $11 ($8.19)
Alumina $9 ($7.75)
Zinifex $20 ($17.75)
Kagara Zinc $8 ($6.82)
Australian Worldwide Exploration $4 ($3.36)
Oil Search $4.50 ($3.92)
Western Areas $7 ($5.51)
Wesfarmers (coking coal exposure) $42 ($38.65).

This is going to be an aggressive re-rating of the entire sector, led by BHP Billiton. This has been coming for some time, and finally we are going to see these high-quality, long-duration, high free cash flow generation, huge barrier-to-entry companies re-priced to a more appropriate level. Quant, value, GARP, income, index, and momentum funds can all justify buying resource stocks right now and the weight of money coming in will be large. It's the perfect storm. Do not be short. "