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I'm not saying BHP is a buy, just mentioned that it's got buying...

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grandcaruso

2,317 Posts.

14/01/16

12:27

Post #: 16794746
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Originally posted by All4One ↑

GC

My thoughts.

You could be right but as TB has said BHP is also affected by the POO and not just IO.
POO dipped below $30 yesterday and if it goes much lower BHP will get smashed again. Ive talked to people that thought BHP below $20 was a buy and so on and so on, they were wrong.

BHP is at $14.78 right now and although it looks attractive what about STO or ORG, both are equally sold down.
I can see a time to buy BHP and these types of companies but I don't think the time is right now and I think these companies may go lower, much lower yet. With China slowing and the world in general slowing the demand for oil is still falling. There is a massive oversupply with oil in a falling world economy. That supply is getting bigger because of falling demand as well and rampant production.

Canada
Canada is only getting somewhere around $10 for its tar sand oil.
I think when the US frackers are hit by debt and are liquidated by the banks then may be the time to buy into these companies.

We will se what happens after China has been open for several hours.

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I'm not saying BHP is a buy, just mentioned that it's got buying support given some broker upgrades. Personally I now don't think there is any reason to buy. Maybe long term $12.50 could be attractive. Our market has fallen back a bit but still holding on. Other Asian markets looking grim. Nikkei flirting with 17000. Toyota down more than 3%, Sony more than 5%. Futures indicating Chinese market to fall close to 2% but it's a casino so could fall 5% or maybe end up.
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