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BHP - BHP Group

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BHP down 3.51% on the Potash takeover news. Don't you just love it when the market overreacts. All you short term traders out there, here's your chance to load up on some discount parcels.

"Wealth is transferred from the ignorant to the well-informed". Thank god our markets are ignorant
 
Yep I got in today.

Dunno about short term traders???? (ref: me)

Hope to be rewarded medium to long term. Just a good entry point today imo.
 

Please explain to this un-informed fellow why today was an over-reaction?
Thanks
 
I took the opportunity to add to my holding in BHP today. As I'm looking to hold for a multi-year period, my personal view is that today's share price drop is only a very short blip on the horizon.

I suppose that Mr Market thinks that Marius might overpay for Potash Corp.
 

I didn't buy BHP Billiton for them to buy loads of ... They are buying at a time of demand for beef when potash is badly needed. Might have been better to have bid in 2008 when markets were on there knees. Doesn't take a genius MD or CEO to buy a stock when it's booming and markets look great.
 
There has been some very nice support resistance at the $35-36 mark and I'd expect a retracement for some topping up at this level, once all the money has been spent taking over Potash, and we head into October.

Unable to post chart atm.

gg
 
Potash Corporation: http://www.potashcorp.com/about/overview

Present closing price 20/8/2010 is $149.67 - market cap US$44.4 billion.

Shares were floated at US$15.125 in 1987 and after allowing for a 2 - 1 split in 2004 and 3 - 1 split in 2007, the equivalent issue price is = US$2.52.

The present price of US$149.67 is equivalent to a rise in price of 26.58 times or 2,658%.

Are BHP Billiton buying at the peak of the market trend ?????????????????????
 
Why BHP is down?

I have been looking at BHP shares for few weeks now. I cannot see why they have gone down so much? is it only because of the Porashcorp? or is it something else?
Yesterday they announced record profit and still this morning the shares went down, even though most of other bluechip shares were up. including last nights lead from US was positive.
 
Shyl,

Welcome to trading............. Trade what you see and not what you think!!
 
Re: Why BHP is down?

shyl said:
Yesterday they announced record profit and still this morning the shares went down, even though most of other bluechip shares were up. including last nights lead from US was positive.
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Short term prices movements do not have anything to do with the performance of the underlying business.

Do your analysis and make an assessment on what you believe BHP is worth based on it's earnings and if the current price is less than what you believe it's true value is then buy it.

A falling share price on a company you have done your home work on should be welcomed not feared.
 
Re: Why BHP is down?

Tysonboss1 said:
A falling share price on a company you have done your home work on should be welcomed not feared.
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Isnt it frustrating to see, all your study does not make sense when the market reacts differently? it makes me think if I am analysing the stock correctly or I am missing something.
 
Re: Why BHP is down?

shyl said:
Isnt it frustrating to see, all your study does not make sense when the market reacts differently? it makes me think if I am analysing the stock correctly or I am missing something.
Click to expand...

It's frustrating till you just learn to accept it as a normal cycle.

The market is like a pendulum it will constantly swing between over the top optimism and out of control pessimissm. The true intrinsic value will be somewhere in between these highs and lows. The true "investor" will try to identify this value by making an assessment on a number of things and buy when the stock is below it's true value.
 
BHP Billiton is as much American and European these days as it is Aussie. Very much a way into a 'whole world' mining investment; though the foreign returns against a strong Aussie aren't helping at the moment. The AUD looks to have stopped its strong run-up and BHP currency returns should improve markedly in year ending 2011.

BHP need world markets to decline if they want to pick-up Potash at US$130 a share. Maybe they also see better returns if the A$ tracks back over the year.

Several news sheets have delivered a 'BUY' rating on the stock across the pond:
Report from UK's Hargreaves Lansdowne to be added; trouble with link at present.
 
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