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bhp 200 dollars in five years

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    I have done some numbers and if bhp merg with rio thier share price will be $200 within five years and climbing.

    bhp and rio aim to produce 300 million tons of iron ore each, together 600 million tons, at the new price of $180 per ton that will give them a profit of about $150 per ton or a before tax profit of ($90 billion before tax) just for iron ore.

    If you include coal and other resources you might add another $30 billion conservatively before tax profit.
    I am just here illustrating the ease at which they will gernerate income without being too micro about it.

    A consevative profit forcast for 2011 would be $110 billion before tax profit divided by 6 billion shares would give you eps of $18 eps with a pe ratio of 12 the share price would be $216. I think I have way undervalued bhp using this formula.
    This formual will only work if iron ore prices and comodity prices stay high.
 
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