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BHP - BHP Group

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I just want to know what happens if RIO says we will not take the offer?

Will BHP SP drop more or will it go up as they will have that $145billion that isn't used?
 
nomore4s said:
I think people were expecting a strong reporting season to help pull us out of the current downtrend and choppy market conditions, but with WOW and now BHP releasing weak (below market expectations) results the signs aren't good imo.

Reality setting in?
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This is EXACTLY what I was thinking when I heard this result.

I was also expecting a strong reporting season and have been surprised, dont like the looks of things at the moment, but thank god I am 65% cash now! If it gets down anywhere towards 5000, I will definatley start buying up.

For some reason, I dont think we have seen the big lows yet! A bottom has to be established before we can really get back into the next bullish phase!
 
Nyden said:
Which is absolutely pitiful for a $35 stock :p:

Which once again reiterates the point - BHP is a "high growth" stock, not a high yield'er (dividends) ... if it doesn't meet that high growth, it's got nothing
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Not to mention, the risk to that growth is at least average, which has to be factored into its P/E ratio.

Price and growth are not the only things taken into account.
 
Buffettology said:
Not to mention, the risk to that growth is at least average, which has to be factored into its P/E ratio.

Price and growth are not the only things taken into account.
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Future Growth explain here? The first time I read this it looked like a jumbled mess, still does but makes some sense the second time around.
2246155178_fb8d2113c2_o.jpg
 
Pretty graphs are nice but they have to translate into results and that didn't happen in the last half. It's amazing how much analysts got this number wrong. According to this smh story, analysts had forecasts ranging from NPAT of US$6.3 billion to US$7.75 billion. That's quite a miss, BHP will surely get spanked in Europe and the States tonight.
 
dhukka said:
Pretty graphs are nice but they have to translate into results and that didn't happen in the last half. It's amazing how much analysts got this number wrong. According to this smh story, analysts had forecasts ranging from NPAT of US$6.3 billion to US$7.75 billion. That's quite a miss, BHP will surely get spanked in Europe and the States tonight.
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Absolutely! These analysts were way off! I mean a billion dollars isnt a small figure!

Its in for a hammering tonight!
 
So is the rise in Ore prices going to be enough to offset falling/fallen USD, Rising Input costs and very possibly lower demand from a US led recession ?

:)
 
albi000 said:
Future Growth explain here? The first time I read this it looked like a jumbled mess, still does but makes some sense the second time around.
2246155178_fb8d2113c2_o.jpg
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look awfully like a bag of party ballons to me - bhp needs to somehow keep that kid over there with the pin (US recession) away or there won't be many left
 
Analysts were way off? Whoa thats big news!

Anyway the reason why I say its undervalued is because no way should a beast earning $16 billion + a year be worth $30. It's P/E if you look at the British & Aussie market is around 10/12, a discount to the All Ords when it bounces around 14/16.

Please keep dreaming if you expect to earn a ridiculous $16 billion per year and break it by increments of 30-100%, not even Exxon Mobil does that but the security of a sustained need for oil has continued to boost its share price from $5 to $95, and similarly I believe that a sustained need for raw materials and petro-products from BHP will be needed for the BRIC to industrialise.

Just like a chart you're going to have down days in the profit reports and I'm personally very confident in BHP and the mining boom to ride ahead despite this short-term indiscriminate volatility.

BHP Billiton media release said:
In the longer-term, with continued strong demand growth driven by the industrialisation of China and India, structurally higher cost sources of new supply will be required. We continue to expect commodity prices will be driven by long run marginal costs of supply.
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Well said Vishalt. It's good to see that someone that has a decent long term view. It's earning huuuuge amounts of money and yet the share price is going down (mainly due to short term factors). Combined with the long term outlook of the sector; China and India are unprecedented in the possible scope of their development- the upside for BHP, longer term, is obvious - with or without Rio. Buy big on the dips I would reckon :)
 
AnDy62 said:
Well said Vishalt. It's good to see that someone that has a decent long term view. It's earning huuuuge amounts of money and yet the share price is going down (mainly due to short term factors). Combined with the long term outlook of the sector; China and India are unprecedented in the possible scope of their development- the upside for BHP, longer term, is obvious - with or without Rio. Buy big on the dips I would reckon :)
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agree - looking to pick up another bagfull at $24 as last time "you are dreamin' frog!" - completion of the currently forming classic Head and shoulders pattern will trigger the get ready to load signal

but yes agree long term she will keep on trucking - as long as the current homo-sapian breeing program holds to keep increasing commodities demand
 
Garpal Gumnut said:
BHP may be in a head and shoulders pattern in a larger as well as a more recent time frame.


So I'll be buying if it continues down and watching volume if it recovers.

gg
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Agree with the head and shoulders hypothesis.

I'll wait for BHP to settle between $20 and $27 before looking at buying in again.

What did the Chinese philosopher say about living in interesting times !!

gg
 

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Nyden said:
.

it is not undervalued, not a single stock in this uncertain market is.
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From a liquidity perspective a stock is worth the price to offload on market.............on the aforementioned quote youre correct 'sort of' .

The rest of your comment is rubbish...........plenty of undervalued companies around ATM................not that I consider BHP one of them!.

Cheers
 
something is only worth what someone else is willing to pay for it. That is the cold hard fact which most people choose to ignore whilst looking through rose coloured glasses........

I speak from experience..I have a big diamond:)
 
LON:BHP is only down 4.5% we went down 7.5%, may be tomorrow will be a small bounce day, given US does not tank.


Thanks Sir Burr and albi000 for the dividend info.
At .89 exchange rate it is around Aus 32.5 Cents a share.
Which at today's stock price of 36.66 gives a Yield of 1.77% ( assuming same dividend for second half).
 
vishalt said:
Anyway the reason why I say its undervalued is because no way should a beast earning $16 billion + a year be worth $30.
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Man, what does its earnings or profit have to do with share price?

How many shares are out on issue? If it had half the shares out on issue, it would be worth $60.

I really hope you apply some kind of formula to your valuation methods. This stock is one to short I beleive.
 
vishalt said:
Analysts were way off? Whoa thats big news!

Anyway the reason why I say its undervalued is because no way should a beast earning $16 billion + a year be worth $30. It's P/E if you look at the British & Aussie market is around 10/12, a discount to the All Ords when it bounces around 14/16.

Please keep dreaming if you expect to earn a ridiculous $16 billion per year and break it by increments of 30-100%, not even Exxon Mobil does that but the security of a sustained need for oil has continued to boost its share price from $5 to $95, and similarly I believe that a sustained need for raw materials and petro-products from BHP will be needed for the BRIC to industrialise.

Just like a chart you're going to have down days in the profit reports and I'm personally very confident in BHP and the mining boom to ride ahead despite this short-term indiscriminate volatility.
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I thought you might actually have a fundamental reason to hold BHP but it's clear from the above that you don't. As Buffetology said, who cares if a company earns $16billion or $16 million? That has nothing to do with valuing a company. P/E 's are also an irrelevant measure when valuing a company.

You are bound to make mistakes when you don't understand the difference between value and price.
 
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