The recent corporate moves on Comalco, Woodside, North and Ashton have focused a great deal of attention on the resources sector. Many well-known stocks that have been out of favor for some years are experiencing a revival of interest as commodity prices recover, causing analysts to upgrade earnings forecasts and investors to go bargain hunting. This favorable environment has been enhanced by the relatively low level of institutional portfolio weightings in resource stocks and the added attraction of Australian assets to foreigners, who are able to exploit the benefits of a low Australian dollar.
Several stocks appear to be targets at the moment.
WMC and MIM are leading resource companies that have world-class assets and are experiencing strongly rising profits, which must attract the attention of predators if share prices continue to languish. Another company worthy of attention is Pasminco. The Age Company Ltd 2000. Any unauthorised use, copying or mirroring is prohibited.