Hurricane Harvey is the latest of the many setbacks to hit BHP’s US shale assets. The company has finally decided to sell its onshore US shale assets after pressure from shareholders.
While CBA looks inviting with a grossed up yield of 8%, I’d happily watch how this plays out on the sidelines for now. In my view, the energy sector is now in the early stages of a new bull market. This may not be apparent immediately. After all, most bull markets start out with scepticism.
If you shut out the noise and just follow one thing — the price action — then the signals are that it may be time to start looking at re-positioning your portfolio.
Legendary investor Peter Lynch once said ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The miner released positive results this morning. Full year underlying earnings were up were up 730% to $1.15 billion. Revenues also jumped 20% to $6.95 billion.
The Big Australian — BHP Billiton [ASX:BHP] — came out with a pretty good result yesterday. Underlying earnings (EBIT, or earnings before interest and tax) jumped 257% to US$12.4 billion.
I’ve been doing a lot of work on the sector for the past few months. As a contrarian investment idea, oil is intriguing right now. It’s off the radar of most investors, yet it’s more in demand than ever before.
Oil demand is driven by a whole host of factors. Most of which are tied to industrialisation, global commerce, improving living standards and marine, air and truck transport.
Shares in Todd River Resources Ltd [ASX:TRT] have climbed 23.81% in early trade, thanks to a fortunate find for the tiny Northern Territory based miner.
Tomorrow, all eyes will be on BHP Billiton Ltd [ASX:BHP] as it releases its preliminary results for 2017.