- SocGen sees BHP Billiton's (BHP) FY 2013 results as a net negative, particularly plans to invest $2.6B during the next four years digging shafts at the Jansen potash project; most market participants believe the project is likely to be NPV destructive.
- CEO Andrew Mackenzie: ""The whole basis of the strategy.. is that we want to retain complete flexibility to enter the [potash] market at a timing which we think is right to maximize returns for our sharheolders."
- SocGen continues bearish on BHP shares; if investors were to invest 26% of their portfolio in COP and the remaining 74% in RIO, the firm says they can replicate the commodity mix and asset quality of BHP but pay a 30% lower P/E and receive a 10% higher dividend yield.
- Shares -0.8% premarket.
SocGen sees BHP's results a net negative
Aug 20 2013, 08:40 ET