BHP Any one game to pull the trigger?

[Dugdale2Dwyer]

Got a 14 handle and huge exhaustion volume today, dip your toes in if you want, btw I don't hold shares in bhp.

 

[undefined]

Got a 14 handle and huge exhaustion volume today, dip your toes in if you want, btw I don't hold shares in bhp.

Exhaustion volumes indicate a reversal in downturn, right? And what do you mean by '14 handle'?

 

[Dugdale2Dwyer]

Exhaustion volumes indicate a reversal in downturn, right? And what do you mean by '14 handle'?

the price has a 14 in front of it. ie 14.52 14.09 14 67. plus i called 14 as a bottom.

 

[Dugdale2Dwyer]

wait again though because the price might rise and fall and retest the low.

 

[Dugdale2Dwyer]

nice pop today, good luck holders.

 

[Duritz]

Solely on the back of the increase in oil
prices. If they go back down it'll revert. It's a funny one because decreased oil prices SHOULD be stimulating an economy, not harming it.

 

[undefined]

Solely on the back of the increase in oil
prices. If they go back down it'll revert. It's a funny one because decreased oil prices SHOULD be stimulating an economy, not harming it.

Usually yeah, but the sub- $30 p/b figures indicate a slowing global economy, dampening investor confidence.

According to a JPMorgan spokesperson, $60 per barrel is the ideal price.

 

[Dugdale2Dwyer]

Biggest one day rise in BHP and RIO since 2009 today, looks like $14 will hold.

 

[Power Raid]

China's slowdown could cause trouble all over, yeah. Also, low world-trade growth, problems with the EU, poor commodity prices, oil tumbling (petrol forecast to go -1.00 which is just awful for your Super if you're not ant-fossil), struggling EM's, etc.

It just doesn't look good in my opinion. What would I know though, I'm a 21 y/o student.

Not a bad call though

I sense 2016 could deliver anything but I'm a believer in the Asian story which is much bigger than China alone

 

[undefined]

Yeah, Japan were the first to take drastic action re the slowdown.

 

[Dugdale2Dwyer]

Up $2 in the last two trading days.

 

[Power Raid]

buy the warrants if you're having a punt at $10 below spot which provides better leverage (both up and down)

 

[Scotland]

So, what does the short to medium term future hold for BHP?

Posted a $7.8b half year loss today. Shares closed at $17.43, up from a year low of $14.20 in January.

Dividend cut to 22c per share, around a 70% reduction.

 

[Duritz]

So, what does the short to medium term future hold for BHP?

Posted a $7.8b half year loss today. Shares closed at $17.43, up from a year low of $14.20 in January.

Dividend cut to 22c per share, around a 70% reduction.

It seems to me they're a real piggyback share. Buy them in boom, sell them any other time. If the world economy starts surging and therefore oil prices do too then bhp will surge, that's how it seems to me. For now id wait

 

[Power Raid]

been trading in and out of the BHP warrants at $10 less than spot.

great returns of $1-$3 on a ~$5 warrant within weeks

 

[Lyyynnnchy]

been trading in and out of the BHP warrants at $10 less than spot.

great returns of $1-$3 on a ~$5 warrant within weeks

Nicely done. Cant go wrong at that price. If youre willing to hold at a 20% loss youre a good chance at making it back plus some very quickly

 

[superfraser]

been trading in and out of the BHP warrants at $10 less than spot.

great returns of $1-$3 on a ~$5 warrant within weeks

Curious, what's that actually mean?

 

[Power Raid]

Curious, what's that actually mean?

buy the warrant rather than the head stock

the head stock trades at say $16.50, then the warrant usually trades at $6.50. The catch is, you have to come up with the extra $10 in say 2022 (depending on the warrant) if you are still holding.

The advantage is a $1 movement equates to 15% rather than 6.5% (up or down).

Most stocks offer this alternative

 

[Duritz]

buy the warrant rather than the head stock

the head stock trades at say $16.50, then the warrant usually trades at $6.50. The catch is, you have to come up with the extra $10 in say 2022 (depending on the warrant) if you are still holding.

The advantage is a $1 movement equates to 15% rather than 6.5% (up or down).

Most stocks offer this alternative

Wouldn't levarageing produce the same result?

 

[superfraser]

buy the warrant rather than the head stock

the head stock trades at say $16.50, then the warrant usually trades at $6.50. The catch is, you have to come up with the extra $10 in say 2022 (depending on the warrant) if you are still holding.

The advantage is a $1 movement equates to 15% rather than 6.5% (up or down).

Most stocks offer this alternative

Thanks for taking the time.

I've just started to buy stock. I guess the risk is, if the stock tanks, I was able to buy a larger amount of the stock because of the lower price - and I still have to pay back all of the extra later on.

Is that right?

 

[Power Raid]

Wouldn't levarageing produce the same result?

a leveraged product will do the same but the leveraged product usually comes with an interest cost, margin calls and likely to have recourse where the warrant has none of these elements

 

[Duritz]

a leveraged product will do the same but the leveraged product usually comes with an interest cost, margin calls and likely to have recourse where the warrant has none of these elements

So it's essentially a bet between two parties about the movement of a stock, amplified?

 

[Power Raid]

So it's essentially a bet between two parties about the movement of a stock, amplified?

No it is better thought of as a partly paid

 

[Duritz]

No it is better thought of as a partly paid

Who owns the stock?

 

[Power Raid]

Who owns the stock?

from a practical purpose, the owner of the warrant as the rights and benefits transfer. the counter party could be MQ, Citi etc depending on the warrant and deliver the shares on the expiry of the warrant.