My punts in resources have been far from happy affairs. For example, having bought LMI (Lonmin) on a downtrend, I held on and finally capitulated with everyone else. I suspect that the bottom has now been put in for it. Basically, a catalogue of schoolboy errors. Sigh. We live and learn, hopefully.
S32 (South32) is a spinoff from BLT (BHP Billiton). I bought at 109.4p. That was hardly a master-stroke on my part, because the shares closed at 68.28p yesterday, for a loss of 38%.
Notwithstanding that, events have taken a turn for the better, as the company has released an operational review for q/e 30.9.2015. They expect to reduce costs. Debt is down a little. Shares are up nearly 6% on the back of this.
Despite having bad momentum, I’m going to keep these shares for now. Why? The shares are on a PBV of 0.51 – generally considered value – and the positive market reaction to the news gives me encouragement.