Australian (ASX) Stock Market Forum

BHP - BHP Group

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If he can harness the momentum, it could make the breakout.
Today, however, another step forward.

bhp_ax04ago10_to_12feb11.png
 
Thanks for your posts starman.

The resistance at $44 was spot on and I was able to get a solid trade in.

Dividend time now so yes, a run up then pull back as BHP goes ex div. Always a great time for trading!

Cheers and I agree with GG's comment earlier re interest in this stock.
 
It looks like $47.00 is a fairly stiff resistance level for BHP at the moment. It's bounced right off that level this morning and is down a fair whack, especially when put up against RIO.

IIRC, BHP reports tomorrow or on Friday, so it will be interesting to see the market reaction, given the forecasts being flung around.
 
Look what has made the price on the resistance .....
... bearish outside bar not yet dangerous.
Moreover, the yesterday daily close below it was doubtful ...

chart daily
bhp_ax10ago10_to_17feb11.png
 
BHP - 12.02.11:


BHP is moving in a upward channel. in 47.20 it touches the ceiling.

bhp-12.2.channel.png

after breaking up of the red resistance line, price might move up to the middle line of the Andrews Pitch-Fork.

bhp-12-02-andrew.png
 
From what I'm reading, it looks like BHP has broadly met market expectations with their interim report released this morning. NPAT of US$10.7 billion (excluding abnormals) and an interim dividend of US$0.46/share (up from US$0.42/share). Plus a US$10 billion capital management program announced.

I guess the comparison will be between what BHP is returning to shareholders against what RIO is returning to shareholders. It's all a bit "ho-hum".
 
is there any point in buying BHP shares?

each shares cost $46, dividend is only 45-48c twice a year, that's return of around 2.1%. what is the point that's lower than savings account.
 
I guess the main point of BHP is that the below figures are your base growth on your investment the 2.1% can be therefore used by use to allocated as you see fit. If you can find another stable company that can provide better return on your money. i would be pretty happy with 16% but hey thats me

Total Shareholder Return (avg annual rate)
1yr 16.1%
3yr 8.2%
5yr 16.4%
10yr 20.2%
 
Re: is there any point in buying BHP shares?

warakawa said:
each shares cost $46, dividend is only 45-48c twice a year, that's return of around 2.1%. what is the point that's lower than savings account.
Click to expand...
Probably need to read up, yes Roger Montgomery is a good resource for learning about company valuations.

The short answer is "those shares will probably not cost $46 at the end of the year". So the chance of capital appreciation needs to be factored in, as well as the dividend. Also, that dividend, relative to the original share buy price, may not be the same at the end of the year.
 
Re: is there any point in buying BHP shares?

warakawa said:
each shares cost $46, dividend is only 45-48c twice a year, that's return of around 2.1%. what is the point that's lower than savings account.
Click to expand...

BHP has stated that it plans to invest $80 billion in organic expansion over the next five years (mainly in Iron Ore in Australia and Potash in Canada). That's almost twice the amount of money that the Australian federal government will spend on higher education during that period.

I also recommend Roger Montgomery's book for an explanation of how to analyse dividend payout rates vis-a-vis shareholder equity, return on equity, debt's affect or return on equity, and so on.
 
Thank you for your recommendations.

What is the difference between Montgomery's "Value Able" and university level investment books such as "investment concepts and applications" by Brailsford et al or "investments" by Bodie et al.

Is "value able" available in pdf or ehub format? What other books I should read?
 
Buyers in control, despite the last three red candles.
Area, however, should win 47 with stability, otherwise the sellers may act with more decision.
Daily chart.
bhp.png
 
warakawa said:
Thank you for your recommendations.

What is the difference between Montgomery's "Value Able" and university level investment books such as "investment concepts and applications" by Brailsford et al or "investments" by Bodie et al.

Is "value able" available in pdf or ehub format? What other books I should read?
Click to expand...

Personally, I have not read the book you mention. I'm new to stock investing. I'll check them out at some stage. I started managing a SMSF in November so it's all new to me. Currently I'm reading my way through Graham's 'The Intelligent Investor' and Fisher's 'Common Stock and Uncommon Profits'.

I think Value able is only available as paperback directly from www.rogermontgomery.com
 
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