BHP - Astonishing result

[fihr]

Amusing to see the price drop today after the rumour was exaggerated. Still - it hasn't dropped all it's gains. Still a great stock.

I don't buy on rumour, because I'm always the last to hear. Rumours are so rampant in resource stocks, esp exploration companies - all those geologists and miners out there love a bit of spec investment!

[Viking]

Its quite interesting if we look at BHP's 42 year capital growth. If we say 100 shares in 1965 amounts to 400 shares today and the price in 1965 was $25, thats annual growth of 4.8%.
Note dividends not included. If we consider the high inflation we've had at times over those 42 years it appers BHP's share price has not matched inflation over that time.

Goes to show what a tough time resource stocks had before this boom

Doesn't look like the stock to pick if we have a time-machine.>>|)

[winner69]

This is what I posted when BHP was about $25 ..... the gist of a review as to what could happen to BHP share price .... suggested $60 possible .... I still believe that


..... small end of resource sector is performing so strongly it is making BHP and RIO (the market leaders) look ridiculously cheap ... not just this making BHP and RIO cheap but compared to 15 times earnings for a Aussie bank, 20 times for a contractor, 30 times for a healthcare .... even Telstra is 15 times .... BUT BHP IS LESS THAN 10 TIMES EARNINGS .... none of these have the attributes like earnings growth, net assets, free cashflow growth, barriers to entry etc etc etc .... one day soon the brokers and analysts will give up their woeful attempts to forecast commodity prices and start basing their valuations on long term future curves .... resulting in broker's upgrades of 40% plus ... we are on the brink of a 'seminal change' in how analysts value resource stocks .... and that one day investors will have decided to commit to major resource stocks ... they will be become acceptable for growth and value investors and fundies will need to be at leat at index if not greater .... based on true fundamentals and not rated as a resource company

Just like the rerating of News in 1999/2000 ..... a large mkt cap company and big component of the index that traded around $20 (pre split) for years and low multiplies compared to junior tech/media stocks and then in 2000 'investors capitulated on their bearish views and News rallied from $20 to $56 in SIX months ..... it was a monumental event and many funds were under exposed and many mangers lost their jobs

[Year of the Tiger]

I received an interesting letter in the mail today from Colonial Capital Corporation Limited (CCC). It had an Acceptance Form in it with an offer to buy my shares in BHP Billiton Limited (BHP) for NZ$72.00 each, payable in 18 annual instalments of $4.00.

They obviously have access to the share register as they had my address correct as well as the exact number of shares I hold.

I'm assuming this crowd are trying to con the less informed Mums and Dads out of their shares.

Anyone else had a letter?

YOTT

[winner69]

YOTT - just like a home equity release thingie eh

[Rif-Raf]

Have posted your entry into it YOTT

[Huang Chung]

Colonial Capital Corporation is apparently one of David Tweed's companies.

Plenty of news out there....here's a sample.

http://www.theaustralian.news.com.au...-20501,00.html

My opinion...tear the letter up!

[Jay]

Yeah I got one as well.
Only targeting NZ holders
18 annual installments!, will they be around in 18 years or will they quietly "forget" to send the payments after a year or two.

Stranger though I have not owned any BHP for about 6 months or so.

[COLIN]

See my posting on the NZX forum, as well.

[Year of the Tiger]

Market predator eyes BHP investors

5:00AM Thursday November 15, 2007
By Helen Twose

For the second time this month, Australian sharemarket predator David Tweed is targeting New Zealand investors.
Letters to BHP Billiton shareholders from Tweed's New Zealand registered company Colonial Capital Corporation offer to pay $72 a share - more than $20 above the current market value. However, full payment for the shares would be spread out over 18 years at a rate of $4 a year.
Accepting the offer also appears to give Colonial Capital the option to amend the payment terms.
A spokesperson for BHP Billiton pointed the Business Herald to a response from the company's chairman, Don Argus, to a similar offer by Tweed, targeting Australians last year. Argus then advised shareholders to carefully check the terms and conditions of the offer, the current market value of the shares and to seek the advice of a broker or financial adviser.
"It concerns me that shareholders may unknowingly accept an offer for their BHP Billiton shares that substantially undervalues their shareholding, so if you do receive such an offer, please check it carefully," said Argus.

Last week the Business Herald reported on a similar offer made to shareholders of AXA Asia Pacific.
Colonial Capital Corporation would purchase their shares for $12 per share, around $3 more than the current market price for the shares, with annual instalments of 80c a share spread over 15 years.