Upfront Investor | Radical Changes Ahead for BHP?

Perhaps you believe that you are unlikely to influence the direction a listed company takes, however, rather than sitting on the sidelines I encourage you to make your views known to company boards. To do this first buy the shares and then attend shareholder meetings to have a say. Ian Dunlop, former executive at Royal Dutch Shell PLC, has taken this thinking one step further by vying for a seat on the board so as to directly influence the future direction of BHP. He wants BHP to take a greater role in addressing global warming. So, are we about to see a radical change at the BHP helm?

With commodity prices and the mining industry per se on the down swing of the current mining cycle, the prospect of change could easily send shivers down the spines of some shareholders who don’t want to see the boat rocked. But could a new vision be just what is needed to better prepare BHP for the future? Unfortunately we don’t have a crystal ball and people are often fearful of change when they cannot see the future. However, change agents such as Ian Dunlop could open doors that lead to opportunities for BHP that would not otherwise be envisaged without different schools of thought. So if you believe that a broader vision could be important for BHP’s future, then buy some shares and vote to have your say.

So what do we expect in the market?

The All Ordinaries index attempted to break back above the 5400 point level to safety last Monday, however, seeing many stocks on our market starting to run out of steam the short term profit takers chose to take some money off the table which forced prices lower. This activity saw the market continue to fall into the latter part of the week to just above an important support zone between 5100 and 5200 points.

Historically this zone has been incredibly strong and unless something comes out of left field in the media over the next two weeks I believe that our market is more likely to find support from this zone and turn back up rather than continue to fall. That said market movers are hanging on the edge of their seats waiting for the Fed to confirm when the economic stimulus will be tapered and this creates a bit of unpredictability in terms of timing the shorter term swings we are seeing in shares locally. In saying this, I still believe we will see another swing up on the All Ords towards my target of 5600 to 5800 points.


To your profitable trading,

Dale Gillham
Chief Analyst
Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’. Dale has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment adviceto traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.