Balanced Portfolio - Switch 4% Mineral Resources (MIN) to BHP (BHP)
Date: 06/03/2024
*** GENERAL AVICE ONLY***
*** Trade Plan ***
Sell Mineral Resources (MIN)
Current Portfolio Allocation: 4%
Entry: $65
Exit: $62.50 (Loss of 1% including dividends)
Buy BHP Group (BHP)
Current Portfolio allocation: 0%
BHP’s core business of Iron ore, Copper, Nickel and Coal all have favourable tailwinds for the long-term and will be joined by Potash (fertilizer) in 2026 with the Jensen operation. BHP is a core holding for the MPC Balanced portfolio which we sold around $50 last year as we viewed the price as expensive
With the sell off in BHP of 14% from its highs, the $44 level is one of the first buying areas we have identified to re-enter what is a core holding for the MPC Markets Balanced portfolio.
Adding to this, BHP will go Ex-Dividend tomorrow, paying 2.5% (3.25% including franking) for 6 months
New Portfolio allocation: 4% (with a view to add another 4%-6% in future)
Entry: $44.40
Proposed Levels to add to holding: $41 & $38
Target Price: $55 (+25%)
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.