chart blow off , page-2

JULIET618

Mmm BHP does look lofty.

The case for BHP rising more

1) Heavy demand for Iron Ore from China in the next 20
years
2) BHP is a Uranium miner already!!!
3) Low PE ratio suggests it is still an exceptional buy
4) Excellent management
5) They seem to have blown off the large aluminium production takeover chest beating - thankfully. Aluminium is a crap investment. All that hard work and stress for minimal return.

6) The share buy back BHP had a few months back means that there is less shares on the registry so you have to buy larger slices of 'cake'. Therefore BHP is perhaps worth what it is trading at.


The case for a decline in BHP share price

1) The laws of diminising returns must kick in. (I can still remember my Economics teacher in high school talking about this one!!)
2) Profit takers- who would have thought that you could make 20% in 4 months on this huge stock.
3) Other buying opportunities - some of the banks look extremely cheap at the moment. At some point wholesale $$$ will be diverted to these. Particulary ANZ, NAB, CBA and WBC

The Captain must go and steer the ship. I think Newcastle is a bit close ...again.

regards

Capt. Goodvibes