Hi Mark,
This is not a tip but I have a long term view on BHP that is very positive, the general trend is still up and with continuing commodity price strength I reckon it's a goer. Don't know much about the rest though. BHP may fall further with a general market correction- that's the problem with bluechips, get caught up in the panic but if it's a buy and hold strategy I reckon it'll work, but then I don't have a crystal ball.
I believe you can relax with BHP. I know it would have been better to have bought at a lower price but hey, that's the way it goes in the market.
Overnight closing price in Wall Street was AUD equivalent of $17.16. Opening price in ASX this morning was $17.09.
I think the price will gradually rise beyond what you paid, within a matter of days or weeks. The current financial year's revenue is largely locked in at higher selling contract prices. The outlook for the next financial year appears reasonable at this stage.
I hold a sizeable amount of BHP, bought in 2003 at average price of $8.80.
Bought more recently because I thought the price might have been oversold.
BHP is the largest mining company in the world. It has 7 core divisions, all firing increased profits FYE 30/6/04.
It is looking increasingly likely that BHP will get to buy WMR at $7.85. I think this will be a good outcome for BHP as WMR has around 40% of the world's known uranium ore reserves. I expect the spot price for uranium to continue to rise over the next few years due to the supply and demand equation. In time to come, the market might realise what a bargain price BHP got for WMR.
Mainly because I would still consider myself a novice, and thought that taking out a $75k margin loan, prepaid interest for this financial year was sufficient leverage for my learning curve.
Will definately look to increase leverage next year - though I still don't have any experience in a bear market.
Not really worried about BHP of course - I still think this minerals bullmarket has some potential...
Do you prefer cfd's to calls/puts?
I understand that cfd's have greater exposure (ie losses are not capped as is with buying calls/puts), but perhaps are more fairly priced as they don't include a sellers risk premium.