bhp and the next two years

A mate emailed this to me but without a link.

Surely where we are at within this current cycle there is only one way for BHP, and that is up. It may not be a straigh line but still up.

Any thoughts?

talktome



"Not surprisingly, as economic projections continue to improve, earnings expectations for cyclical companies in particular have received further injections of market optimism. And, as highlighted in Macquarie's updated projections above, resources stocks have been the major beneficiaries among the cyclicals.

As a result my analysis is that BHP Billiton shares are becoming cheaper relative to the overall market. This is the result of BHP shares being unable to rise beyond $38 a share, while ongoing market updates by securities analysts continue to improve the outlook for future profits for shareholders.

A few weeks ago (click here) consensus earnings per share expectations were that BHP Billiton would almost double its EPS (in US dollar terms) over the next two years (though admittedly from a depressed 2006-07 level because of asset write-downs).

Now the expectation is that BHP will MORE than double earnings per share by 2010-11, even though many stockbrokers have adjusted their Australian dollar projections in the meantime"