BHP on the way down to 20 dollars, page-99

Szaba,

Long term holders have probably enjoyed substantial initial cost recovery through half yearly and special dividends, sell-offs (BlueScope and One Steel), buybacks etc... so the current price probably irks more than worries them.

Mid-term holders may be worried as their recovery period now will be quite some time off into the future or accept a loss and eject it from the portfolio.

Short term or new holders more are perhaps more exposed than mid-termers...

The tough part is many of these may not have a tax instrument to allow a loss to be treated and they just have to take it on the nose.

Traders live and die by the cut and thrust of their trade in the market and some survive and some don't. The goods ones may well hold options or derivatives and been able to pre-empt the market.

Personally, if BHP gets much closer to $AUD20 I will be strongly suggesting to my cohorts a move to acquire for the long term. It is one of the largest mining companies in the world and they can carry substantial losses and right-downs that few others can, Glencore maybe another. If BHP gets into serious trouble then there will be a lot more in even more trouble and other sectors in for a bumpy ride as a result.