btw ELI meant to comment on your BHP issue....yes one would be...

btw EL

I meant to comment on your BHP issue....yes one would be blind not to think BHP is toppy. But I have had it in my portfolio now since early 2006 at $24.93 entry. It was a fixed investment for me with leverage, so I did not trade it at all.

Right now, I remain bullish and have 15months to go (3 years), and I may hedge some of my invetsment during that period if it gets to $60+. Why am I bullish?

...there's the obvious reason of high iron ore and coal prices as well as copper. But I think the real wild card for BHP is oil and gas. They have some excellent projects coming on stream at an ideal time when I expect the POO to rise. They also have several undeveloped discoveries in the pipeline as well as an aggressive exploration programme. It is my view that oil and gas will be the biggest profit driver for the company over the next 3 years, and all the other brilliant world class assets like Olympic Dam expansion will chime in just in time follow.

Finally, there is a lot of foreign money flowing into the aussie mining industry because, relative to the Canadians and American markets, they look undervalued. The strong outlook for the Aussie economy and attendant likely high interest rate environment = strong currency, makes the market here look like a safe haven for foreign equity investors. I think it is that buying which is a big factor in the current demand.

regards
DF