I mean as a shareholder what is the justification for burning your capital in a loss making business asset with a crap long term outlook when that capital can be deployed in proper BHP assets that have very high returns on capital? I struggle to see any other alternative than to mothball these crappy assets until such time as or if there is a structural change in the market. The key for me was when they used the word structural change rather than cyclical change. They implies they now do not have a lot of confidence the low price will change anytime soon.
BHP Price at posting:
$45.14 Sentiment: Hold Disclosure: Held
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