BHP and RIO

B

bankaiblade

Member
They've both taken quite a large hit since the beginning of August.

Any ideas why?

Really confused about RIO after I read "Rio Tinto announces record first half earnings"
 
not trying to be funny but first half earnings are till 1st of july the hit they took since begining of august is in 2nd half
 
Just a guess not really sure, but they mine mostly other industrial metals if there is a slowdown in economy they dont get to sell as much metal and therefore profits down
 
Probably the debt ceiling crap since it was pretty much left till the last minute so stocks across the board took a beating?

Then after that the ASX lost like 60 billion AUD so everything crashed lol.
 
Rio and BHP represent more than comodity stocks, they have investers from fund manager, superanuation funds etc etc, with the weakness and fear of another GFC im not surprised they have taken a hit.
 
BHP recently had a take over offer or suspected one of another large company? Was it Woodside? With such a large target it may have to dilute shares/raise more debt which could drive the price down. If this crash gets worse they both could be excellent buying ops
 
Maybe they were just trying to take over a section of business - something like when rio sold their aluminium business to alcoa or whoever.
 
Will BHP pull up around the January low of around $25?
GFC low was below $18, however that was reached at an astronomical rate of descent - 6 mths! This current decline has used up 7 years if you take it from the first peak of the double top in 2008. A correction in time as well as price.
All the major commodities that BHP produces are depressed, but it has scale advantage and is still on a cost reduction drive. Because of the share price crash it is now a yield stock and has a policy of growing dividend where possible.
If this isn't getting to a contrarian situation, when?

Indecisive 'spinning top' candlestick for July - looking to completion of August for guidance. Doubt that I'lI be buying, but am holding
 
The solid names without big debt like regis and northern star should be the last men standing, unfortunately the market seems to be wise to this and they aren't going down in sympathy like you might hope. Glad I got the family into some newcrest before they jumped up.

I'm sure there will be a glencore, BHP and Rio in 10 years time, not so sure that they will be the Giants they are now though.
 
I wet my beak with BHP last week, averaged myself in at $21.80, $20.80 and $19.80. So my average price is $20.80. Time will tell if it's a good capital gain, but the dividend is ridiculously high, even if they cut it.

The low of 2008 was $17.90 or thereabouts, I'm hoping that holds this time around.
 
Complimentary chart with lines below :-

17623_bhp20160819.png


BHP was savaged in a 17 month sell off from August 2014 until January 2016 but has been recovering along with the iron ore and oil price so far this year. Chart shows an ascending triangle with tapering volume, indicating an accumulation phase and potential reversal of the downtrend. Today it broke above the long term resistance level around the 21.00-21.25 mark - up over 2% for the day.

The June 30 report was also released this week, confirming all the bad news that the market was already expecting - putting bad news behind and clearing the way for genuine recovery.

Still a question mark over the competence of the board but it looks like the worst may be over for BHP and a solid break above resistance would not surprise. Could be a good time to buy with risk to the upside.

As usual though - DYOR
 
Wow, hard to believe there has been only one post in this thread since last year.

Update on my position: I purchased more BHP when it was near low at $15.8, so my combined average is $18.6. The ultimate low of this year was $14, crazy stuff.

At it stands now I'm up 13%. I'm aiming to take profit at $25. The NYSE listing is up 4% as I speak, so we will probably have a good day on the ASX tomorrow.
 
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