Hi OMS, I would say SXY is over valued and BPT undervalued.
BPT is currently worth $1.8b and they had a NPAT for the half year of $56m which if you double for the full year the NPAT could be around $110m, giving a PE of around 16.
SXY has very little earnings atm, they reported $1.95m NPAT for the half year, this with a market cap of just over $1b. So you could say that SXY is pretty much fully factoring in their exploration potential because of there small earnings. While BPT isnt factoring in any exploration upside into their conservative valuation only their current production.
Markets do tend to over shoot to the upside, hence the move in SXY and they also tend to over shoot to the down side, ie the recent move down in BPT to $1.405 from $1.785.
All those clever analysts who had beach downgraded to sell from neutral and neutral from outperform and saying there were better options else where should have their heads examined, because clearly they are wrong!
Cheers Prowiz
BPT Price at posting:
$1.61 Sentiment: LT Buy Disclosure: Held
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