A good buy at these levels.
Following recent political developments in South Africa where it is proposed black empowerment groups will be able to buy in to 25% of each project in the country I am very wary of the implications to BHP.
I would look at RIO or WPL.
Reasons:
*Political risk in South Africa is a strong negative for BHP.
*RIO Tinto has historically outperformed BHP in terms of creating shareholder wealth.
*Rio Tinto has historically outperformed BHP in terms of peak cycle valuations.
*Superior dividend yield from both RIO Tinto (3.7%) and Woodside Petroleum (5.1%) over BHP (2.8%).
RIO and WPL have a very similar asset mix to BHP without the inherint risk that is now associated with it.
RIO
Add RIO (ASX) to my watchlist
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Last
$93.24 |
Change
0.260(0.28%) |
Mkt cap ! $34.51B | |||
| Open | High | Low | Value | Volume |
| $92.40 | $93.43 | $91.95 | $57.77M | 625.0K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 450 | $93.23 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $93.24 | 349 | 13 |
View Market Depth
| Last trade - 14.46pm 12/11/2019 (20 minute delay) ? |
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Last
$93.20 |
Change
0.260 ( 0.54 %) |
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| Open | High | Low | Volume | ||
| $92.31 | $93.43 | $91.97 | 94587 | ||
| Last updated 15.07pm 12/11/2019 (live) ? | |||||
| RIO (ASX) Chart |