Letters of the Week

BHP's pipeline, government super, and the potential train wreck ahead.

As a small retail investor I feel compelled to respond to Robert Gottliebsen’s report ‘BHP’s low-cost opportunity pipeline’, to express my personal views. In May 2008, BHP share price reached $50.00 but then fell to $20.00 in November 2008 before recovering to $50.00 in July 2011. From there the share price fell to $30.00 in August 2012 and since then the share price has followed the general upward movement to reach its current level of $36.00, all the time offering a measly grossed up yield of just over 4%. This is apart from several poor business decisions by management along the way including (with Rio Tinto) the loss of dominant position and control of iron ore prices for (apparent) short-term gains which has proven to be a nightmare. Now it must provide higher volumes at lower cost to meet its obligation. The Chinese are laughing all the way to the bank. Plus, to make amends, BHP won’t even give its shareholders back some of its misused capital. Our “No. 1” is not a preferred stock of mine by any measure. Better opportunities elsewhere.

L Smith

{{content.question}}

Mastercard

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Email is required.
Email must be a valid email.
Password is required.
First name is required.
Last name is required.
Mobile phone number is required.
You must accept the terms and conditions.

OR

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access

Mastercard

Updating information

Please wait ...

Trial

Mastercard
{{ productPrice }} / day
( GST included )
Price $0
Discount -{{productDiscount}}
GST {{productGST}}
TOTAL   (inc. GST) {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership

Mastercard

The email address you entered is registered with InvestSMART.

Login or to reset your password, select Forgotten password

You have entered an incorrect email or password

Email is required.
Email must be a valid email.
Password is required.

Please untick this box when using a public or shared device


OR

Related Articles