its looking like a good buy atm if they keep a similar dividend to what they were paying. There P/E down to 14 and paying a $1.6 dividend it surely cant go that much lower.
The BHP dividend is a confidence trick since they moved to a policy of paying a "progressive dividend" instead of one based on true earnings. Be VERY careful trusting those BHP execs....
Forecast earnings for next 2 years is around 60-70c according to commsec. That's a forward PE of 25. Do you think they will still pay a dividend of $1.60 if they are only making 60c ?
100 BHP shares for less than the price of 1 once of Gold. Just resurrected an old online trading accounting with Westpac. Put in a few practice bids to get the feel for when I hit the buy button. Had a bid in at $15.15 and it did get to that price, but I did hit cancel. I want it to go even lower before I REALLY hit the buy button.
Should have put in bear call spread, and wait for volatility to increase. This will be up, down. Up, down.
Do you think that is already priced in or will we see hoards flee the big Australian if they stop a dividend or even severely cut it?
Citigroup thinks BHP is a buy: http://invezz.com/news/equities/218...ces-rival-Rio-as-Citis-preferred-mining-stock
Don't count on that - bigger companies have gone bust or been taken over. I will prefer to watch from the sidelines. But you are probably right if they fail it will be nationalised or broken up not just broken.
