Buying Shares in South 32

Discussion in 'Share Investing Strategies, Theories & Education' started by Moojebing Lad, 19th May, 2019.

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  1. Moojebing Lad

    Moojebing Lad New Member

    Joined:
    18th Apr, 2019
    Posts:
    2
    Location:
    Western Australia
    Hi all,

    I own some shares in S32 because BHP gave them to us years ago.

    The financial newspapers have made a couple of suggestions that S32 is a good buy right now.

    Should I buy some more?

    Comments, suggestions, criticisms: I'd like to hear what members are thinking.

    Regards,
    Moojebing Lad aka Kevin B.
     
    2 people like this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    1,461
    Location:
    QLD
    buy more S32 ???

    i guess it gets down to risk tolerance

    ( i hold S32 courtesy of the BHP divestment also )

    bearing in mind S32 has most of the second-string assets BHP accumulated over previous years AND despite commodity prices , we should be in a resources consolidation phase ( where companies normally reduce bottle-necks close down unprofitable projects and cut other costs where they can )

    do you think S32 will buy any discarded assets ( from other miners ) BHP did leave it with some cash reserves and S32 has off-loaded some assets . , and S32 inherited some assets that will still need extra effort .

    one school of though might suggest S32 has enough work ahead of it ( mid-term ) while another would want to buy ( wisely ) discounted assets ( LYC would normally be a target an aggressive S32 would have looked over )

    i am prepared to hold and wait on S32 so that i can understand management thinking better ( will it tend to be aggressive or cautious )

    would you buy S32 , if you didn't already hold some ( if i had of been forced into buying my mining growth shares i probably would have bought FMG , and would by now be taking some profit from them )

    another thing to consider is S32 management , logically you can't expect them ( mid-term ) to outshine the management BHP , but are they still better than other good miners ( NST , FMG and others )

    previous RIO board members show you how bad decisions can cost the share-holder ( pay-packet size isn't always a predictor of profits )

    i intend to hold my current S32 shares but am unwilling to add ( using actual cash ) until the resources cycle returns to more usual patterns ( several manufacturing nations are financially fragile , there still might be more DOWN )

    cheers