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BHP - BHP Group

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Mr_T said:
Did you read the article? Stephen's piece is well written, and his arguments are very strong. Basically, RIO is the one receiving the premium being the target. Why would they instead pay a premium by being the predator?
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Yeah and I don't buy it, I don't see whats so hard to believe?

If you're able to conceive how much money these guys are willing to throw around its believable. Gang up with Xstrata, AA, Teck, get a huge loan from Chinese + willing banks and buy BHP and carve up the assets!

Pac-man or not BHP still looks very attractive at current prices.
 
Would not that be a great if RIO took on BHP Just a pleasant thought I wander if it would have the same market reaction????
 
haemitite said:
Yep, BHP and RIO are doing horribly with their 70% EBITDA iron ore margins, close to the poverty line.

Luckily the next price rise will more than wipe out the complete cost base.

If you are going to get affronted, you might want to get your facts in order first.
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Haematite sorry I think you’ve missed the boat on the whole conversation. I honestly have no idea what you are going on about now or what point you are trying to make? I have gone to effort to state my points if you want to argue your’s then please put them forward, otherwise responding to you is a waste of my time. You write two or three measly lines that make no sense to the argument at hand.

When did I ever say BHP and RIO were doing poorly with their margins, when in fact they are doing very very well. Yes you are right the rise will wipe out the costs and impact of the higher currency and hence margins won’t change all that much. But just because a company currently has sound margins doesn’t imply that they are not due for a correction over the short term or that they can not be overvalued slightly. I hold BHP and as I have said many times BHP is a great company to be in. Please feel free to elaborate on which of my facts are out of order, because so far in your last post you agreed with everything I have said on BHP in this thread, i.e.

•BHP’s future outlook is good and they are exposed to metals that will be in great demand from Chindia. Cu, U308, Ni, Iron Ore, Petroleum products.
•Because of the size and scope of their operations they will have low cost, high profit margin operations.

I couldn’t be bothered going on, you should get the gist. So when you criticise my facts this time make sure you pick a fact that has something to do with what I originally said.

Nevertheless if RIO makes a bid well then none of this will matter one little bit, BHP will be hitting blue skies in no time because the premium they would have to pay would be massive. But by the looks of it, the market didn’t really take too much interest in this idea on Friday, so will just have to wait and see how that pans out over the next week or so.
 
Captain_Chaza said:
I told you so! (~on the 9th of November)

How many of you believed me?
When BHP beat RIO to WMC it then became PERSONAL!!

Let the game begin
My money is on RIO

Salute and Gods' speed
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Now if that were to occur, then a takeover premium would ratchet up BHP.
If my money were on RIO (it's not - it's on BHP), then I would sell off RIO quick smart as the premium it got from BHP's actions will soon be wiped off.

In any event BHP's share price is probably justified on Olympic Dam's resource base as the minerals it has in the ground there keep rising in value - especially uranium.
 
Greens, I quote you "Iron ore prices need to rise to cover the inflating costs hitting the mining industry; skills shortages and higher capital costs and let’s not forget the effect of the rising Australian dollar since the last contracts were singed off."

From this its apparent you don't understand the iron ore industry basics.

Just as your earlier points re BHP's historical PE and future valuations do not make any sense. And when you linked your two "points", your reasoning is plain messy.

As for RIO taking out BHP - thats ludicrous. Do you really think RIO woould pay what one commentator estimated to be 70B for management rights?

You can keep on posting "I don't get it" threads, or you can go back and read what was said, including your own words. Up to you.
 
One of the things that struck me recently about BHP was how resilient a stock it was on pullbacks in price.

It respects extremely well previous support and resistance levels.

In the chart enclosed I have looked at BHP from Feb 2005 to the present on a weekly chart.

I have drawn dark red lines at previous major previous alltime highs and yellow lines at recent major lows, purists might call them intermediate lows.

When BHP makes new all time highs profit takers sell off and it retreats to invariably near its previous high or if it drops below that high never goes much lower than 3% or so from the previous.

It also follows reasonable fibonnaci retracements although I haven’t put these on this chart to save cluttering.

I’m overweight in BHP and RIO so will not be buying BHP unless it retraces further to the 50% at about $39.50 just below the previous high, or to 62% which would still not be too far below that high. As in the past I would expect it to rise up again and seek new highs.

This is probably on a longer term trading pattern than that with which most are comfortable in ASF.

The volume with BHP I find meaningless as “the smart operator” is so widespread that even the funds, I feel, don’t know when to get and out of it. I’m quite sure the Future Fund is up to its neck in it.

I couldn,t give a monkeys whether RIO takes BHP out or vice versa, either way it will be good for both companies and the charts are witness to their outperformance.

Hopefully BHP will keep on going up and I won’t have to buy it!!

gg
 

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Anyway while we wait for BHP to travel up to $55 (sorry doomsayers) if these 2 companies were to merge, what would it be called lol?

BHP & Rio
BHP Tinto
Rio BHP Tinto
BHP Billiton Rio Tinto
Billiton Tinto

such yuck names, hope they rename the whole thing
 
Why not keep with the acronyms and have something along the lines of:

BHP BRT

or

BHP BRTA

Who knows, maybe just:

Huge Frickn Mining Company
 
or some completely mutant hybrid name? haha

Briltinton PrioH

just rolls of the tongue eh!

what about their slogan?

"Come get some, Chindia!"

So what do people think, is it better to be holding BHP or RIO now?or both?
 
vishalt said:
Anyway while we wait for BHP to travel up to $55 (sorry doomsayers) if these 2 companies were to merge, what would it be called lol?

BHP & Rio
BHP Tinto
Rio BHP Tinto
BHP Billiton Rio Tinto
Billiton Tinto

such yuck names, hope they rename the whole thing
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I hear Broken Toe has the inside running currently... with Rio's Broke coming a distant second....
Cheers
.........Kauri
 
I found this on the internet. I assume that it is this crash.

The mining giant BHP Billiton says it has suspended its operations in Angola after leading executives were killed in a helicopter crash.

A company statement says five people died in the crash, including BHP's chief operating officer in Angola, David Hopgood.

The others to die were British operations manager Kevin Ayre, another British staffer Guy Sommerfield, Namibian businessman Louwrens Prinsloo, and Kottie Breedt, the South African pilot.

The helicopter crashed on Friday afternoon in bad weather about 80km from a diamond exploration facility in northeastern Angola.
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http://story.malaysiasun.com/index.php/ct/9/cid/3a8a80d6f705f8cc/id/301111/cs/1/
 
That's quite sad.

Sounded like a routine flyover..

May they RIP, they contributed their part in making a great company.
 
Yeah a brilliant article indeed.

I wonder what Chip Goodyear is thinking!

I reckon if this takeover is all about iron ore then BHP should wait for Fortescue to start producing first and then acquire it, it'll be much cheaper and hey.. it's iron ore!
 
BHP is hanging at the 50% retracement from the recent highs to the August lows. The 50% retracement was a resistance point on the way up.

Recent volume has been very low so it doesn't look as if there are many sellers about.

Enclosed is a daily chart.


gg
 

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Mr_T said:
Herald Sun's Terry Mcrann wrote a brilliant article today on this takeover. Basically, he doesn't see the point of it.

http://www.news.com.au/heraldsun/story/0,21985,22787256-36281,00.html
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I think his comments re Billiton are very interesting, BHP shareholders overpaid. Then again maybe BHP wouldn't have eaten WMC without Kloppers.

But Mcrann has presumably missed the point on the iron ore growth, BHPs presentation was about deal synergies, ie volumes above that that could be delivered in the absence of a deal

And the market would have already priced in RIOs superior position on iron ore
 
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