South32

[macduffy]

You might have done OK buying back in around $1 in January. South32 that is.

Indeed, Aaron!

Credit Suisse have floated the idea that S32 will return around $500m to shareholders next year. Shareprice reflects this optimism.

The company warrants some serious research.

[Joshuatree]

Where did this conversation morph from mac? Our trust has some Sth32 when it was hived off BHP. I remember they have high quality project/operations in good sectors with little debt? but not much else. I see they have doubled cash from last qtr to $500 plus million:).Quarterly Report September 2016-S32.AX (http://hotcopper.com.au/threads/2976584/)

[macduffy]

It morphed from the BHP thread and discussion around the potential taxation of the S32 hiveoff in the hands of BHP shareholders.

I don't hold either stock. S32 is interesting though - said by some to be the unwanted bits of BHP with multiple problems but some "gems", particularly if certain metals recover former price levels. The attraction, to some, is that it has no debt, is possibly over-capitalised, and as Credit Suisse predict, may return capital to shareholders in the coming months. I havn't delved further.

[macduffy]

For anyone interested in S32, Macquaries have an "outperform" on the stock. From FN Arena:

"Macquarie rates S32 as Outperform (1) - South32's Sep Q production report was mixed. Lower met coal sales were offset by higher manganese shipments while other commodities were roughly in line with forecasts. Cash generation was better than expected.
Commodity prices continue to trade well above the broker's base case forecasts. If they persist, the broker would expect a buyback or special dividend.Outperform retained. Target rises to $2.90 from $2.70."

FWIW.



"

[longy]

Good find Mac.

I have been with it from day one. Getting better by the day. Yes they are debt free now and accumulating cash pile nicely too so far.