Interesting post below which I've copied from the Senex thread indicating that Morgans Stockbrokers rate OSH highly _wolver'.
https://www.livewiremarkets.com/wires/resources-stocks-what-s-the-problem
Peak Cost-Out
Stockbroker Morgans took a more company-specific angle in its commodity forecasts update at the beginning of October. While pointing out the economic cycle remains supportive for commodities demand in general, the December quarter is nevertheless seen as possibly triggering a "breather" for the sector.
Equally important is that producers in Australia and elsewhere in recent years have concentrated all their efforts on bringing down operational costs, which means operations are lean and mean and margins are high, with cash flow abundant, but this is where the trend approaches its natural conclusion. To put it in
Morgans lingo: the sector has reached
peak cost-out.
In this environment, argues the stockbroker, genuine value is harder to find. In terms of stock picks, Morgans suggests investors look for
two key elements:
1/- whether a
company is already holding value-accretive growth,
2/- or whether
higher prices are not as yet priced in.
Morgans suggests Oil Search (OSH), OZ Minerals (OZL), BHP and Rio Tinto all satisfy these criteria.
The broker also likes Senex Energy (SXY).
