re: chart for those interested

Therre are some factors that are not part of the traditional economic models. Interest rates is one, foreign exchange whether in earnings, costs or related to the cost earning equation is another.

A company as large as BHP can continue to book profits over a longer period than most considering it may not and does not book some of its earnings and profits in a given economic period or Financial Year. The Banks also have that privilege and being as big as the big four tend to use it as a tool to stabilise their market positions. Why? it produces the leverage and the credit ratings critical to their maintaining their debt repayment schedules in line with their interest rate preferences for the purpose.

BHP does not report all of its earnings, losses, profits and capital gains and losses in the same year always. It stretches these out to suit like every other sensible company does.

BHP does not have too much control over US foreign policy and the effect it has on markets. It may have the inside on which way it will go in order that it may then make the necessary adjustments to absorb the impact of shocks.

I am not suggesting it is a bad or poorly run company, I am merely suggesting that this cadillac has some serious dents running in a very fast lane of bad drivers. The lustre will be seen to be faded and jadd at the next pit stop and thats here already.

The Banks are holding on to an inflated baloon which someone has deflated with a small pin. It won't burst but will take a lot of air out of it.

Both the Banks and BHP, barometers of the market and its performance weight the stock market index disproportionately and when the speculative factor is taken out of them in one day, the drag effect on the stock market index itself is enough psychological damage to the rest of us to create panic and sell out.

Since the Chinese, Indians and yes former Soviet states have come onstream, the value of much of BHP's products have been eroded. The Indians have more Uranium than we do. They had controlled Uranium mines and deposits in Africa for a while whilst maintaining a lid on their own deposits in Orissa, Bihar and Madhya Pradesh states (strategic minerals). The same with iron ore and coal.

Ukraine and Poland and Brazil are the other nations with very very large deposits of the same but excepting Brazil these other two have very poor mining infrastructure and methods are inefficient but thats changing.

China will have 5 of its 9 nuclear power plants on stream within 24 months. The sale of coal to China and by BHP Mitsubshi has been underwritten by our govenment and the subject of an investigation that was quickly thwarted in March/ April of this year. They have been selling at 30% below market!!! Something is about to give.