"We expect the BHP Billiton result (US$15.5B) on Aug 18th will result in earnings and dividend upgrades and confirm the positive fundamentals for the sector at a time when the hedge funds are very short. Investors have just one week before BHP triggers the short covering rally. Our view remains that adding to high quality resource sector exposures as these discounted (shorted) entry points is a very low real risk proposition. We remain strongly of the view the commodity cycle won't end with a sporting event."
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
