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BHP - BHP Group

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The rumors are true.
According to analysts it is the most well diversified resources company on the planet.

Inevitably, there are no pillars left. :bricks1:
 
I was just having a look at BHP's chart, it first hit the $26 levels around 9 years ago and we are there again today. 9 years of stock growth wiped out in a few Months.:eek:

I don't hold but by crikey I'm looking at this decline and at some point BHP is going to be a buying opportunity. The big question is, when will be that point? Waiting patiently...
 
Bill M said:
I don't hold but by crikey I'm looking at this decline and at some point BHP is going to be a buying opportunity. The big question is, when will be that point? Waiting patiently...
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Probably the best time to buy is when your decision making comes to the thought process that mirrors something like "This is too cheap now, something isn't right. What does the market know that I don't". When those storm clouds are brewing the light might not be too far away.

For now taking into account all the variables at hand - it's still sunny here in Queensland, but that's just my opinion...
 
This is my post yesterday on Somersoft:

Today I purchased a small parcel of BHP @ $27.30.

My reasoning:


Quote:
BHP Billiton has a progressive dividend policy. The aim of this policy is to steadily increase, or at least maintain our base dividend in US dollars terms at each half yearly payment. http://www.bhpbilliton.com/home/inve...Dividends.aspx
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Most recent dividend was USD$0.62c. If we keep that base for 2015 (Interim and Final) and the AUD stays around the 80c mark, gives us a forward dividend of $1.55ish.

($1.55/$27.30) x 100 = 5.67% FF.

Investors havent enjoyed a dividend yield like this in 15yrs.

I could be right, I could be completely wrong - but for now, thats my uneducated insight.


pinkboy
 

Why would they keep paying the same dividend when their return on iron ore is dropping because of decreasing prices?
 
I think they have mad a policy decision to gradually increase dividends rather than do a buy back.
RIO is possibly doing both
 
waterbottle said:
Why would they keep paying the same dividend when their return on iron ore is dropping because of decreasing prices?
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Because that's their policy - I linked it for you. They have cash reserves to get them through the lean times.

What do you think will happen to SP if they decreased their dividend? There would be blood on the streets - that's what. And I bet my last BHP share that wont happen.

pinkboy
 

The dividend policy is just an intent, based on current conditions and forecasts as perceived by the Board. The Board can change that policy without consulting any shareholders... so not something I'd bank on.

And speaking of blood on the street for BHP share price... it's been bleeding pretty bad for 5 months.
 

x2

Iron ore prices have crashed and may or may not continue declining. All depends on China IMO. Regardless, have a look at the chart for BHP - the price could crash through the GFC support. From then on it's anyone's guess where it will stop.

Do you really think BHP will keep paying the same dividends in that state?

 
Noted gents.

At least a small holding can be averaged down quite significantly should there be a bloodbath.

Thanks.

pinkboy
 
The new CEO is keen to change the heritage and stay clear of the the way marius kloppers wasted billions with his moronic management.
I firmly believe that dividends will remains : they were very small initially and I do not expect them to decrease so Ibank on good ROI at current BHP price
 

The line chart doesn't quite show the true GFC bottom which was $20.



Are we going to get there? Anything is possible I guess, but we could just as easily retest $30 level (perhaps on it's report).
 
Just to curse all holders, I picked up a parcel on Wednesday and a double parcel Thursday.
 
BHP investment

I have $15K invested in BHP at various different prices. Should I sink more money into BHP in the hope of it going up, or should I hold?
 
Re: BHP investment

superauditor said:
I have $15K invested in BHP at various different prices. Should I sink more money into BHP in the hope of it going up, or should I hold?
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Ask yourself why you bought in the first place. What was your thought process at the time?
Now ask yourself if those reasons are still valid.

This process should give you some insight into what the correct decision is for your individual circumstances.
 
I still think BHP has further to fall yet possibly $20 to $24 level at this stage. Have attach an analysis chart of BHP...any other T/A views?
 
These are my extremely rough estimates of what commodity price (long term) it would take to get a 'fair value' at the support levels:

$28 = Oil and Iron Ore both @ $80
$24 = Oil and Iron ore both @ $70

With so many variables it's hard to say, but that's what I'm working with at the moment.

But I'd also say any decline to $24 won't be based on commodity drop alone. It would need another accompanying factor whether it be general market weakness, capital / dividend issues, substantial write downs, China panic etc...

On the upside for BHP to hold above $28, it would need Oil and Iron Ore to bottom out at no more than another -10%. Again just my personal estimates.
 

Thanks for your input shouldaindex.I agree many variables at play.Should be an interesting 3 to 6 months I will be watching with interest as to what happens with BHP and where it will eventually find the bottom.
 
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