I also note that UBS has upgrading BHP Billiton to a Buy for the following reasons: �� Upgrading on the back of global I/O commodity forecasts
�� Leverage to iron ore, coking coal, copper and oil
�� Strongest balance sheet in the sector, positioned to grow through M&A
�� Valuation: $42.54 (DCF, 10% d.r.)
They also report BHP's breakdown by commodity and destination and the spread is impressive (see the screen cap below) however the price action is today below the support of a decending triangle ~ not a good look IMO....
BHP Report graphic:
BHP 1 hour chart~ price action below all MAs, with lower highs and support being tested ATM:
I note UBS's report document contains the following risk statement: Statement of Risk: Investment risk inherent in the resource sector includes, but is not limited to movement of commodity price and currency which may differ materially from the assumptions used in this report. Furthermore the sector is subject to political, financial and operational risks, each of which has the potential to significantly impact industry performance.
I guess that is why each should do their own research before trading.... I note SPX & INDU have formed in spirit of bear patterns ATM ~ not sure if they will break up or down tonight, however ex div in US tonight can not be good for SP?
BHP Price at posting:
$36.64 Sentiment: ST Sell Disclosure: Held
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