BHP Billiton Share Discussion Threads

[hooley] 21/1/2016 16:32

Looks as though the MMs are closing the bears? BOD has said maintenance of the b/s strength is top priority - another way of signalling a dividend cut in my view.

[hooley] 21/1/2016 16:32

Looks as though the MMs are closing the bears? BOD has said maintenance of the b/s strength is top priority - another way of signalling a dividend cut in my view.

[essentialinvestor] 21/1/2016 10:15

In My View - usually stick in on to the end of a post if mentioning price,
my take only in other words.

[npp62] 21/1/2016 10:15

IMV?.... 'In my view' I should imagine :-))

[idioterna] 21/1/2016 10:07

Sorry to be an idiot but what is IMV? But otherwise t would appear that 2 more years of utter disaster are now baked into the price. It's probably the banks that are going to confront that disaster not Billiton, but that is just my opinion.

[essentialinvestor] 21/1/2016 09:52

Fair enough but as mentioned yesterday around 576 discounted a huge amount
of bad news, just IMV only.

[idioterna] 21/1/2016 09:51

I don't think there is a low in this market, but as long as there is a decent dividend to be had I'll hold for the top of the next cycle.

[essentialinvestor] 21/1/2016 09:24

PennyC may have caught the low yesterday when he mentioned buying.

Monty, hope you closed if short.

[ny boy] 21/1/2016 09:23

Rickmay, do you go long on stocks in May😉

[rickmay] 21/1/2016 09:16

WOW This chart is BAD !!! Target £2 to £3

[rickmay] 21/1/2016 07:47

NASTY CHART.DOWNWARD TREND. TARGET £2 to £3.

[essentialinvestor] 20/1/2016 20:29

monty, disagree, think today's price discounts a major amount.

[idioterna] 20/1/2016 17:52

It's up to you how you interpret it but since the company announces a less than 5% drop in iron ore output (Samarco?), appears to have anticipated the non-oil side situation and reiterates its position vis a vis weaker commodity prices through 2016. Why is the share price down 40% on a potential decline in dividend payments (by 60 cents - representing less than 2% of share price value)? And if they are serious about maintaining their credit rating why on earth would they ever consider an acquisition. Far better to watch the bankruptcies across the mining and banking sector surely? Or perhaps they have to acquire bankruptcies to appease the credit rating/investment bank agencies.

This is too weird to get an angle let alone explain.

Nice to see you are lurking in here Peny. I believe you picked up a decent little bargain there. Unlike this earthling :) I'll add a few in February with some other dividends and hope it stays down here long enough to grab a few more come March. So much froth in the markets it had to come off and naturally it always starts at the right end of the alphabet. Never invest in shares that begin with A or B.

[rickmay] 20/1/2016 16:05

TARGET STILL ON TRACK ..£2 to £3 it's coming boys !!!!

[montyhedge] 20/1/2016 15:42

When dividend passed 275p here we come.

[loganair] 20/1/2016 14:30

The world’s biggest miner BHP Billiton led a fresh slump by the FTSE 100 index today, with its shares dropping 7 per cent as a glum trading update raised fears over a possible cut in dividends.

BHP Billiton said it sees no recovery in iron ore or coal prices in the next few years, although it held out hope for a rebound in copper and oil amid a rout in commodity prices and stocks so far this year amid demand fears as global growth slows.

In its latest quarterly production report, the global miner reinforced bearish views on a sector which has been battered by oversupply worries at a time when growth in China, the world’s biggest consumer of consumer, has slowed.

And in a sign the firm may cut its dividend, ending a long held policy to maintain or increase its payout every year, BHP Billiton’s chief executive Andrew Mackenzie said it was focused on defending its credit rating.

McKenzie said: ‘In this environment, we are also committed to protecting our strong balance sheet so we have the financial flexibility to manage further volatility and take advantage of the expected recovery in copper and oil over the medium term.’

Fellow blue chip miners Glencore and Anglo American have already taken the step to signal cuts to their dividend payouts.

Like other commodity firms, BHP Billiton is reeling as oil prices have slumped further at the same time as prices for its other products have plunged to multi-year lows.

Average prices for the firm’s commodities slumped between 20 and 51 per cent in the first half of its financial year compared to a year earlier, with crude oil the worst hit.

Brent crude was close to a fresh 12 year low below $28 a barrel again today, having slumped from a high of around $115 a barrel last summer.

Like its peers, BHP Billiton has been ramping up production while it looks to cut costs amid the price slump, which has only exacerbated the global oversupply issue.

The blue chip group reaffirmed its guidance for declines in copper, coal and petroleum output in the year to June 2016.

It has slashed the number of rigs at its US shale fields amid the collapse in oil prices.

Earlier this month BHP Billiton said it was to write down the value of its US shale assets by $7.2billion (£5.1billion) as it reduced its long-term oil price forecasts.

The commodities giant said that while it expected the price of oil to improve from current 12 year lows, the short and medium term outlook remained bleak.

The group today also trimmed its full year forecast for iron ore by 10 million tonnes to 237 million tonnes mainly because of a deadly dam burst at its Samarco joint venture in Brazil, where output has been suspended.

BHP Billiton produced 57 million tonnes of iron ore in the December quarter. Quarterly copper production fell 9 per cent to 400,000 tonnes because of lower grades at the Escondida mine in Chile.

Analysts at broker Liberum Capital, said: ‘No surprises in the Q4 production report in terms of achieved production or guidance for next year.’

They added: ‘Big set of results coming up for BHP where it will need to address balance sheet to retain “solid A” credit rating. This will include a dividend cut, but additional capital may also be required.’

The miner is scheduled to report its first half results on February 23.

Today’s update saw BHP Billiton’s shares top the FTSE 100 casualty list in late morning trade, down 7 per cent or 44.2p to 582.9p.

Meanwhile other heavyweight blue chip mining stocks also fell sharply, with Glencore, Anglo American, Rio Tinto and Antofagasta all between 2.9 per cent and 5.9 per cent lower.

Price target cuts from Investec Securities also hit the already battered sector today, with the broker cutting its ratings for both BHP Billiton and Anglo American to sell from hold, although it kept Rio Tinto as a buy.

Investec’s analysts said the lower outlook for commodities is likely to hurt BHP and Anglo American most, although it stayed positive on Rio Tinto because it ‘continues to generate positive forward free cash flows.’

[penycae] 20/1/2016 12:36

Morning all.
Just bought some of these at 576. Never thought they'd reach this level. Maybe some more downside, but happy with the position.
Key to me was FTSE at 5700. For ten years, that's always been "fair value".

Trade well and prosper.....

[rickmay] 20/1/2016 11:53

Great combination Metal's and Oil TARGET £2 TO £3

[ny boy] 20/1/2016 10:27

Have they got a strong enough balance sheet to survive this worst commodity rout in history?

For sure at some stage there will be a V shaped recovery but doesn't appear to be any rush to take that gamble yet.

[tsmith2] 20/1/2016 10:19

Cut back production...and cut costs including dividend...otherwise just shooting themselves in the foot, if the demand simply isn't there why just keep on producing...Majors should cut back big time in iron and coal..It's about margins not top line

[rickmay] 20/1/2016 09:06

TOLD YOU GUYS !!! We are on track £2 to £3 chart in dire.

[loganair] 20/1/2016 08:14

By Ryan Newman - Time to Sell?

The headwinds facing BHP Billiton couldn’t be clearer. Although it maintains well-diversified operations, all of its key markets (iron ore, petroleum, copper and coal) are suffering from falling resources prices, with little hope of a recovery anytime soon, while China – BHP’s key market – is also growing at its slowest rate in a quarter of a century and trying to transition away from infrastructure growth.

Add in the prospect of weaker earnings and a slashed dividend yield, and the case is hardly compelling for BHP Billiton.

In saying that however, the share price has fallen to its lowest level in more than a decade as a reflection of these issues. While I still don’t believe BHP Billiton shares are a buy right now, investors still holding the shares may want to think twice before selling as well. Of course, there is always the possibility of further losses in the near-term, but the risk vs. reward payoff does seem to have improved.

As tempting as it may seem to put some money to work in BHP Billiton at this historically low share price, investors need to be aware of the risks and headwinds which threaten to drag the shares even lower.

Indeed, BHP Billiton’s largest customer, China, is now growing at its slowest rate in 25 years. Its growth is expected to continue slowing with commodity prices also expected to continue falling, perhaps sharply. As a price taker, commodity prices are something that BHP has very little control over which does make the future very uncertain.

Investors who buy today could be rewarded in the long-run, but even at their current price tag, I believe investors have a better chance of achieving superior returns by looking elsewhere in the market.

[rickmay] 20/1/2016 08:08

UNDER £6..Here we go .TARGET £2 to £3 it's coming folks.

[rickmay] 20/1/2016 07:56

Are we heading under £6 today ? fingers crossed