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This is a BUY time for bargain price of BHP stock….get on board!
BHP ASX under $20
PLANT on 13/11/2015 - 10:48
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I've learnt that no one has a clue about shares.
This is probably a good sign you should change your source of info (assuming you don't do your own technical / fundamental analysis of each company since you're looking at someone else's BUY / HOLD / SELL recommendations).
Ive learnt that no one has a clue about shares
Well in hindsight you do !
So what should i invest $1000 in?
Anyone got a hot tip?
Decmil (ASX:DCG) is currently well undervalued. Price to earnings of 4.2, price to assets 0.5 and a 12% dividend. Even if it loses value you've beat the market when you factor in dividends.
There is no way they can sustain a dividend payment like that. It's not a matter on if but when they will cut dividend amount
I do agree with you to some extent but the reason it's so good is due to the price to earnings ratio being ludicrously good. They are currently paying out 54% of their net profit to shareholders compared to other companies where that figure is closer to 70%. Compared to their price it is ludicrous but compared to their earnings it's fairly standard
I dont know anything about shares but that doesnt look too good.
Is there a chance they will go bust or something?Lower numbers are better. It means that their net worth is 4.2 times their earnings meaning their earnings are extremely high for their valuation. It also means they have twice as many assets as their net worth… yes that doesn't make sense hence it's a good buy
It also means they have twice as many assets as their net worth
Actually, no. It means the market puts a lower worth on their assets than the internal accountants do.
How much would you buy a house for if the market suggests it is worth $500k but the owner tells you "nah, my accountant values it at $1m"?
@PBG:
That's not what P/E ratio is.P/E has nothing to do with asset valuation by internal accountants, since…
1. Price is market price, not par price.
2. Earnings is declared profits (usually EBITDA).A high P/E ratio may indicate a good buy, but may also indicate other factors (i.e. general market projection of negative growth earnings).
Ok just to warn newbies that asking suggestions on forum etc.
There is "technique" when the full time traders will talk and post on multiple forums for their own benefit.
When they want to sell stock ABC they will post various comments online on how good the stock is, etc. When they see the price up, they will sell.
Just my 2C, no offence to anyone.If you ask others which stock to buy, it means you are not ready to invest in shares, better practice at casino first.
You sound like you know what you are talking about.
Got any hot tip?Best to wait for next eneloop deal, then buy, buy buy!!
Hahaha, Inception.
Whilst Ozbargain is mighty and powerful…. It may be a bit of a stretch to move the BHP price.
I just bought KFC
Did you claim the free chips and drink with your purchase?
Was it under $20 ?
It was under $20 therefore a MASSIVE BARGAIN!(&@!(
(wasn't brazilian KFC either!)
YUM
Look at their p/e though, it's still above 22. Div yield is good, although admittedly may not be sustainable in the short term.
I think there's still further to fall. Can see it reaching the analyst price target of $17 without much trouble. Maybe if it goes to $15 I'll buy :)
22 p/e? I'll wait for 7 then.
i want to buy shares in kfc woodridge
meh put your cash in your bank.
the time and energy spent worrying about a share price every few hours isn't worth a 'possible' increase.
What a load of rubbish…
You follow the same strategy as they people born in the 50s and 60s. That's why most of them are still working at the age of 70 now. They can't quit and clamping down on their dear job whilst shoving the new gen out of the workforce. They did nothing but stash cash under their pillow for 40 years hoping the tooth fairy will just quadruple it.
Take a risk, invest in something, start up a business, etc.
If we all just sat like idiots with X amount of money in the bank waiting for it to multiply, Australia would be 50 years behind in innovation, GDP and so on.Thanks for the reply frotsman.
I have taken a risk, I have invested in something. Thanks for the tip though!
Nps,
of course, none of us are fully licensed financial advisers so that stuff all posted here should be taken with caution.
However it's common sense to know that what I was referring to above, is that the risk is relative to your savings, goal and risk appetite. i.e if you were to lose 100% of that investment, will you end up in a tent in Hyde Park or not.
just piece of advice, the chinese stock market is much better than the shitty asx…
yes, but ~$60 for a share trade, is not worth it.
Chinese govt was shutting things down to stop fallout from the 'correction' not so long ago! .. so YMMV
Never try to catch a falling knife.
is that knife called wow limited?
This post may constitute as financial advice. I'd advise you to put a disclaimer
I agree. Mods might consider this point.
Agreed. Can't believe anyone would be so stupid
Speculating on mining stocks is ok if you are prepared to take on a high level of risk.
The fundamental factors and risk are factored into BHP's price meaning it could go either way.
The full fallout from the Brazilian mine has not yet been disclosed and with negative investor sentiment, could easily plummet further.
Unless you have some insider info, love betting or are a long term investor, BHP probably isn't going to be the best investment.
BHP just led ASX to rebound this morning.
BTW does AU government imposed tax on capital gain from the stock market?yes, if held for over 12 months then 50% discount
please seek advice from your accountant
On the daily chart looks like head and shoulders situation. Means the trade will keep going down. On the longer period of time chart the BHP trade hasn't cross the resistance line, which also means it is still a downtrend. I reckon it isn't a buy signal yet for a call.
According to comsec this is an underweight share… The consensus recommends a moderate sell even… dont think its the best idea
is there a free app that can show me how much dividends are paying and maybe all other basic stuff that shows a history of the shares?
Yes. Commsec
Thanks ill take a look
unrelated question, in commsec,
if you buying shares, you bid for shares at current market price or what ever you think seller willing to pay? and some one then sell those shares to you?
Then you pay for the shares with successful bid?
just not understand the buying process.Ok in a very very brief way of explaining it in my knowledge.
It's all supply and demand. Say the current BHP price is $20.
You think it's only worth $19, you put an order in to buy at $19.
The sellers for various reason Think the current BHp price is too high at $20 and there's no buying order at $20. He/she put an order in to sell at $19.5
That's when buyers who put an order in for $19.5 get fulfilled. That's when the market price become $19.5. Then many more sellers think $19.5 is still expensive, he/she put an order in to sell at $19 to take profit/ cut loss. That's when your order gets fulfilled. Also that's when the market price becomes $19.
The process repeats for when price increases. If people are willing to pay more, that's when prices go up.
You can purchase shares 'at market' or at a set price.
You would be purchasing the shares at the market price or lower (you wouldn't be paying higher than 'market' as long as you're buying them through the exchange).
The process is that you enter in a Buy Order, to purchase a specific quantity of shares @ a particular price (either market or a specific price).
This order will be filled when a seller is meets your bid (price and qty of shares). Alternatively you may be meeting the sellers offer (i.e. the seller put up their order before you).
When you purchase at market, you're basically buying at whatever price the seller is selling at. This is regardless of what the last price the stock was traded at [not technically correct], so you could end up purchasing the stock at a much higher price than what it last traded at if you were to purchase at market.
If you setup a demo account, or unfunded real account at IGMarkets.com.au, you'll have good historical charts on 1000's of markets including aussie stocks, and from memory lots of company info.
As mentioned Commsec is very good.
http://www.digitallook.com/index/ASX_200
shows real great quick reference info,
Note their dividends can be way out, eg if no divs payed for five years, they use 5yo figures (I believe). So need to check elsewhere.
And unless you know how Broker recomm are calculated, dismiss them as per this site (IMO), as they're often just auto-calculated on a very simple formula.
Anyone buy after the crash, and sell when they peaked $56 > ?
if youre in the tech analysis camp, the last major swing low was $20 as well.
throw in a trade and set your stop loss at $15.I will probably wait at this stage until they announce the drop in their dividend (which they will), in probably around two or three months. If they cut it in half it will be a 4% dividend, not bad but not great either.
They have been very generous with dividends, probably too much so. Most of the boom has gone straight into their shareholders pocket. Good for them, but why then should we pay any more than what they were going for ten years ago? Its not like they have used those funds to build the company.
The Samarco incident is not a huge event financially (but obviously a tragedy for those concerned). Im more concerned about the general circumstances of BHP.
A bit of professional advice…
The value of what any stock is at the moment is the product of the collective wisdom of the entire market
It may not be the "right" price but it is the fair price based on all of the market participants.
If you are sitting there saying - "yeah but the market is irrational, that is way undervalued" Why do you have confidence that the market will ever find reason and agree with you. You might go to your grave being the only person who knew BHP was really worth $30… doesn't help you though.
BHP most likely will come back - but will that comeback be any faster than what the market recovers? ie if the market returns 20% in the next 2 years - BHP has to return 20% just to break even, let alone reward you for the risk of owning an individual stock
One final tip - anyone who purports to "know" what is happening is either a) full of shit or b) breaking the law.
Or have a stash themselves and worrying about it dropping too much
Great comment.
Could have Jedi Mind Powers?
If you have Jedi Mind Powers and can work out what every participant of the market is going to do, it shouldn't be against market integrity unless someone is doing a on-market takeover/massive liquidation.
Random internet guy says to buy a specific stock…
well..im sold. All in!the ATO wants 500 million for tax evasion threw singapore tax fraud
BHP and RIO have screwed China for years with their monopoly on iron ore. Back in 2010 these two companies setup monopolistic pricing agreements to keep iron ore prices high. During the time they got screwed, China went to Africa and paid billions to setup mining operations there, which was to go full production in 2015. The capacity output was going to be 70% of the entire iron ore output of Australian miners per year. Well, it's 2015 now and iron ore prices has slumped, wonder why… Not only is the Chinese economy slowing but they are sourcing large parts of their iron ore directly from Africa. If you think $20 is cheap, wait till after the boom is over, which it will be soon (e.g. after the US fed increases rates and the market cannot absorb the impact of higher rates.
I can't help but feel that these won't be worth buying until they dip under $15. Especially with the recent law suits and now the damn collapse, that will probably end up costing them near $1B by the time repair, clean up and revenue loss is taken into account. Then there is the rep damage which means just as much to the stock market
are there any apps/charts/websites that gives you free, REAL TIME data of shares? .. the ones on google, yahoo etc all have 20min delay..
You can sign up with any broker and enjoy free real time data?
I don't think signing up an account will cost you anythingyea im with commsec
This is the only free charting site I've seen that has a 5 minute delay
There are a lot of Ozbargainer's who are interested in shares.
Scotty, maybe you could setup a ASX (or Shares) category?
Hotcopper website my friend, this is a Bargain site.
Thanks.
just remembered I bought shares from TPG 2 years ago and just had a look.. WOOT I got nearly 5 times more than what i invested in.. Too bad I only put $1000
For once, something posted on this site than hasn't been "ozbargined" :P
Soon this stock will be reduced to clear
Off the topic, is Slater & Gordon a good time to buy?
It's out of love nd being shorted big time. Better off putting your money into something going up like BAL
Amazingly this thread is less than a month old
and BHP is close to $17. Still quite a long
way to go in my opinion.15% loss.
When did DICK SMITH take over BHP??????
CHRIST!!&(*^&^What the hell are you smoking?
Yeah, they've got the knack.
Hey PLANT. Could I sue you for shonky advice? Shares are now $17, representing a 15% loss on the $20 you told me to buy at! Your words were "BUY time for bargain price of BHP stock….get on board!" with no disclaimer!
Counter sue as look at the price now?
Sorry but my outlook wasn't 1 year. You can't just assume everybody will be taking the same outlook on investment as you - some may want to hold for the very short term and others for long term.
Hey OP, good work. Shares are now $16ish after a month of your post. If anyone had listened to you and bought the shares, they would've lost ~25%. You clearly have no idea. You're not a financial advisor and you shouldn't tell people what to do with their money.
thats MAY be OP purpose, post something with word "cheap" so people buy his shares (because he wanted to sell at that time!).
this is one of the tactics of share traders, if you read the books."the above is just my assumption"
Yea it could be that or he was just ignorant.
or maybe he simply doesnt have crystal ball that working to predict things.
like most of human including you and me.
I don't think the OP needed people to buy his shares, this is one of the most traded stocks on the ASX, there would be many many buyers
Dividend people…
Otherwise bring on 2016 and report back to me ;)…
Who's a long term investor….. It's not the price but the time in the market….
Who said that??? If you know then you have an idea why I posted.
Oh if your not happy nice little tax right off against the profit on other shares purchased……
Glass half full people.Why would I put my hard earned money into a stock going nowhere but down/sideways when I can put that money into other stocks going up. It's called opportunity cost.
$15 now OP. Good work.
Happy to be appreciated ronnkee….oh now back to THE BIG SHORT….something about $558million but hey wait to you catch up……
It's a big loss now, 14.45 at one stage.
So when is your own correction PLANT?
Almost 30% loss in two months for a blue chip stock may be a world record?
Buy it when reach stock tick support level. stock market 'guru' said. BHP support is at ZERO.
BHP support is at ZERO.
Hot damn, that's encouraging. Aren't they Australia's second largest company?
I am depositing this weekend. Buying Asx index if a significant (crash) drop happens. 45 then 42 is my personal target. No idea really but opportunity to get into stockmarket low. Smiles if it does crash in the next few weeks.
Any thoughts Lee?@powerhead:
I believe Asx200 bottomed at 4750 overnight, so might see 4500 yet.
The index has ~4% dividend payout, so low price buy (relatively) now may be a decent investment choice.What interests me is 10 years ago from memory, the realworld cost to get a barrel of oil to market was $35 - $40. It varies a lot, but is above this in US fields I believe.
If that's still true broadly, what effect will oil below $30 bbl (mrkt price) have on world economy long term?
Just worst case thinking. Probably way off.Could even be an OPEC -> eliminate the opposition move. Again just thin'nin'.
Missed out on this bargain, over $26 now.
Yep seems I was right….. Funny about that… NOT!
No, as explained to you before, there were many less risky investments that achieved similar or better profit. This had serious risk. Others had less.
If but what("there were many less risky investments that achieved similar or better profit")…..this is in and will continue to make more profit fact is there for you to see!
Well done OP. I got on the BHP band wagon as well. Not at $16 but low enough to be smiling widely.
Um…..just checking in with $28.47 share price today…….nuff said!
Ditto. Only invest what you can throw away.
Many curveballs in the investment arena.