Rotation into these is likely Also look at manufacturing/food producers due to falling AUD Be careful, not all stocks are created equal. Some stocks to have a look at Alkane Resources - ALK (REEs) AusTex Oil - AOK (Oil) Capilano Honey - CZZ (honey and bees) I cant find a lot of oil stocks or Uranium stocks that look cheap/secure. I spose looking at Paladin and Lynas would be prudent considering they are the best known Woodside, Santos, Linc Energy, Hawkley, Karoon - worth checking, im not really as familiar with oil and Gas Companies as other commodities It might be time to look at copper producers as well Peryila (PEM) might be worth a look If economies are picking up these areas should pick up as well. Think carefully about them
My pick in the energy sector is New Hope Corp they are a coal company who also recently started in oil and gas they own the rail system for transport to the port they also own the port plun now that they are into oil and gas their costs are even lower. Extremely well managed (Part of Soul Pattinson who also own a large chunk of TPG another well run business)
been accumulating woodside for a few years now. only wish I trade in and out a bit with them rather than just straight accumulation. could of improved my position even more but I added too slowly to make it viable.
Just a little info on the Woodside of the past, My Dad experienced first hand Woodside's Managment's complete incompentency in the area of managing projects and blowing out their project build budgets. So as long as managment have changed... like completely in the last few years - woodside is a managment risk. Dad said it was so bad at some points in the past - their JV partners (some of em) sold out to get away from them. But im not up-to-date on the their current managment - although I heard they abandoned a massive LNG project off the coast of WA recently. (which would have crapped the federal government off).
Regardless of past management problems, they aren't the largest Australian petrochemical company by accident. They will enjoy decades of production in the North West Shelf into the future and can pick and choose their development projects. They abandoned the coastal LNG hub project due to the projected costs not meeting a cost benefit analysis. The result is the money they planned to spend will be returned to shareholders as a special dividend. Their ASX releases hint at exploring an off-shore hub direct to export shipping that will be much lower cost. Another problem to the onshore hub was the relentless small pressure group who wanted their picturesque desert beach in the middle of no-where and the portion of the local Aboriginal community who was opposed to the plan. The local Aboriginal groups who wanted the plan and its' licence payments to their tribes are now upset the plan isn't going ahead and want the payments to go ahead anyway. Unlikely.
Santos and Oil Search are a solid buy if picked up for the right price I've been told. ..Personally I cant consider energy stocks, not until I get my feet wet with a few undervalued miners.
Im finding it difficult to find many stocks with a low p/e other than materials stocks So if anyone find an oil stock with a low p/e let me know (by low I mean at least under the market average)
Dont understand the p/e aspect as yet, still learning only a few years in and becoming more exposed in the last 6 months. I currently hold FAR and NDO, the first hasn't done much in the five months I've held them and Nido seems to get a lot of chat on HC. With the current shareholder unrest in Nido I'm unsure of their immediate SP prospects but I've topped up last week, will soon see if that was a good move or not. From what I understand is that the current management is ex-BHP and they are taking a slowly slowly approach, and a lot of shareholders are getting sick of waiting for some price action, once they expand their Galoc field the SP will defiantly move how much I'll just have to wait and see
Emerging economies are tanking - so bit of a game changer. Looks like a global market deflation (not long term), but all asset classes are down. AUD is down 20% from its 1.10 high to the USD - this means international investors are making a double loss on the assets if they havent hedged the currecy risk.
