The oil price remains around US$30 a barrel and has fallen significantly in recent times, although the implications of this are not all negative. Lower oil prices benefit a number of businesses, and at the same time lower oil prices are stimulatory for the broader economy given it is a key cost for consumers and businesses. One company which benefits from a lower oil price is resins manufacturer Nuplex (NPX.NZ/NPX.AX) which has recently received a takeover offer which saw its share price jump 27% the other day. NPX shares corrected sharply in 2016 with the market selloff, which we believed created an opportunity to buy the stock. The market selloff combined with a low NZD & AUD have made Australasian companies an attractive investment for offshore buyers and we see this trend as set to continue. Sydney Airport (SYD.AX) also indirectly benefits from a lower oil price, and reported strong profit results yesterday which we discuss below.
Nuplex Takeover Offer
The start of 2016 had s...
Stock Markets, Simplified.