A large number of broking houses are not allowed to make recommendations on BHP at the moment because of their role in corporate in the BHP/RIO saga.
What's true is this....
Charlie Aitken has a barbell theory of the Australian markets, buy 4 banks, BHP, RIO and WPL and you should never lose money in theory, as one goes up when the other goes down.
The truth is, nothing in this market is going to escape a global slowdown. In actual fact, penny dreadfuls may be the safest place, as there are no institutions needing to sell out positions on a bad day.
However, the analysts are all right. BHP is fundamentally cheap. There is no doubt about this.
Will it get cheaper, probably or maybe today was the bottom. Time will tell this. But if you are relying on analysts to provide you with buy/sell recommendations, you are in the wrong game.
Their job is to provide factual information for you to make your decision with.
Note in all their reports, they never actually come out and say a particular stock is cheap. They always say this is cheap compared relative to its peers.
At least Charlie Aitken sticks his grapes out there and calls a spade a spade.
BHP Price at posting:
$25.80 Sentiment: None Disclosure: Held
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