Short term oversold yes , so a bounce is possible in bhp ..but i...

Short term oversold yes , so a bounce is possible in bhp ..but i totally agree with first post !.
value of bhp on current 2016 -17 earnings forecasts is prob around 10 dollars on earnings that is and that is still using a pe of over 20 .. use a pe of 15 and you could get scary low prices
bhp earnings per share are similar to the early years before the china boom ,, and that's before boom ..
prices could trade sideways for a very long time , like i have said before in 2002 48.4 cents 2003 earnings were 44.9
in 2004 they were 75.33 ,,,going forward short to medium term bhp earnings most likely going to be in the high 40s to low 50s or lower ..could take many years ,even a decade or more , before demand outpaces supply again !! post boom times that is normally what happens . takes long time before demand outpaces supply after a boom ..
bhp is a buy at some stage.. the world will still need commodities yes .. its just that the margins are going to stay so low for longer .. paying to high pe for bhp is just stupid . the dividend yield on bhp will get hit so hard .
smart management would be to droop or cut the divi now make statement now calm the market .. cut divi ..to a 50 % payout ratio .even better would bee to totally scrap the divi use the cash to buy distressed assets and there will be lots of opportunities ..
i covered my shorts to early cause i got greedy ,,but i think iron ore will continue to grind lower as will bhp ..
oil and copper will recover before iron-ore and coal .but its not enough..