BHP - Astonishing result

[BlackPeter]

According to an article in today's NZ Herald, the spin-off of South32 will be treated as a dividend in the hands of NZ shareholders of BHP to the extent of 70cps.

May be time to re-assess this company's suitability for my portfolio.

http://www.nzherald.co.nz/transtasma...ectid=11440027

Fair enough. Tax treatment of Kiwis owning Ossie shares is appalling enough if we look at the loss of tax credits for dividends. However in this case we would need to pay tax for "receiving" capital we already own, based on an Ossie focussed board making stupid decisions (just caring for themselves I guess). Clearly a good time to vote with the feet.

Discl: sold out some months ago and not looking back ...

[macduffy]

I sold yesterday.( Ahead of the "Sell in May and go away" crowd!).

BHP has been a good stock for me on several occasions over 40 years or so - and still the pick of the Aussie miners for a bit of diversification into that sector for those so inclined, IMO. But the potential tax issue, on top of current iron ore market was enough to send me packing this time. Keep under review.

[money maker]

I sold yesterday.( Ahead of the "Sell in May and go away" crowd!).

BHP has been a good stock for me on several occasions over 40 years or so - and still the pick of the Aussie miners for a bit of diversification into that sector for those so inclined, IMO. But the potential tax issue, on top of current iron ore market was enough to send me packing this time. Keep under review.

Why don't you just buy back this week trading around $28.55 mark. As you said still a pick for Aussie miners and still a great value stock? I also see south 32 up around the $2.25 mark today

[macduffy]

Why don't you just buy back this week trading around $28.55 mark. As you said still a pick for Aussie miners and still a great value stock? I also see south 32 up around the $2.25 mark today

No, I don't buy in downtrends anymore! Learnt that lesson a long time ago and happy to miss out on the occasional great bargain by sticking to that rule. Yes, there'll be a time to buy BHP again but I'll just wait and watch, meantime.

[tim23]

I elected to sell my South 32 shares as part of the demerger in the share sale facility, anyone an idea when they are paying out for these?

[macduffy]

I elected to sell my South 32 shares as part of the demerger in the share sale facility, anyone an idea when they are paying out for these?

The demerger presentation said " no later than eight weeks following ASX listing " ( of South 32).

Bear in mind that all such shares have first to be sold!

[tim23]

Thanks for that macduffy, think they would have sold my modest lot by now!

[winner69]

BHP heading sub $20

Bad enough having a commodities downturn but being party to a disaster killing dozens and the other collateral damage is really bad

Profound sympathies don't excuse corporate cost savings (if that is found to be a contributing factor)

Even if I thought it a bargain now don't think I'll buy any shares

[HRM]

I did see BHP dividend was more than profit this year. I guess to keep share holders from not dumping them. Will just hold out for a recovery and long term investment

[Bjauck]

BHP heading sub $20

Bad enough having a commodities downturn but being party to a disaster killing dozens and the other collateral damage is really bad

Profound sympathies don't excuse corporate cost savings (if that is found to be a contributing factor)

Even if I thought it a bargain now don't think I'll buy any shares

The disaster is terrible. It is another to add to the sad litany of industrial disasters. It underlines the need for independent and effective inspectorates to ensure codes are followed (& to recommend new codes) across all industries. Sadly all industries carry risks, which we can only strive to mitigate to the best of our ability. It is a continuous balancing act of cost/benefit. Maybe BHP will become the latest bete noir? In the United States environmental damage and human life is calculated to be very expensive (as BP is now accounting for). In Bhopal India, it was calculated to be quite cheap, as Union Carbide, the American multinational, discovered. Brazil is vowing to make BHP pay. Let's hope they boost the funding of their independent inspectors too. Perhaps it is easier to make foreign multinationals into scapegoats, as opposed to rooting out deficiency in national standards, lax enforcement procedures and corruption amongst inspectors? That is speculation on my part. I don't know the causes of this latest disaster. However, poorer countries often have lower requirements to attract business.