BHP Billiton (BHP) is reevaluating massive spending plans as slowing Chinese growth necessitates...


BHP Billiton (BHP) is reevaluating massive spending plans as slowing Chinese growth necessitates a more cautious outlook for commodity demand. It plans to closely review where Chinese demand for iron ore is likely to peak before committing to a $20B+ investment in mine and port infrastructure in Western Australia's Pilbara region.
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Comments (6)
  • Paulo Santos
    , contributor
    Comments (33745) | Send Message
     
    I guessed this one before BHP and been writing profusely on it ... eheh
    19 Mar 2012, 08:46 PM Reply Like
  • Julius Ferraro
    , contributor
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    good call i read you article on it. Going to put you on my follow list now. I will still buy bhp at 70 simply based on valuation though
    19 Mar 2012, 09:52 PM Reply Like
  • MMMPARSLEY1
    , contributor
    Comments (68) | Send Message
     
    Great Call.

     

    I am short EWA rather than AUD/USD... but if I wasn't averse to massive leverage, FOREX exchange may pay off handsomely shorting AUD.

     

    EWA is bank heavy, and I think banks are perched up for a pummeling due to consumer weakness, loan demand contraction, house valuation dropoffs, depressed Aussie dollar, and growing unemployment.

     

    Dave
    19 Mar 2012, 10:21 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33745) | Send Message
     
    JFerraro, valuation is illusive, the profit margins and ROE are unsustainable. RIO is a better short, though, or the AUD/USD - you can guess what a cut in mining investment and exports would do to Australia.
    19 Mar 2012, 10:00 PM Reply Like
  • Julius Ferraro
    , contributor
    Comments (493) | Send Message
     
    I am never looking to short. However last year has taught me to become much more patient. I will entire RIO at 50. The option premium i get from selling 50 puts when the stock trades lower is great income. When do you expect them to turn down?
    19 Mar 2012, 10:26 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33745) | Send Message
     
    Now ... the reason why they'll turn down is becoming more obvious, to the point where BHP sees it. As an added kicker, auto production in Jan/Feb dropped 38% or so - not sustainable, but removes steel demand while the reduced demand from construction doesn't hit.
    19 Mar 2012, 11:04 PM Reply Like
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