Wednesday, February 07, 2007

BHP Record profit - I picked it weeks ago.

BHP Billiton Ltd (ASX:BHP) has reported a record first-half profit of $6.17 billion. It has also stated that it expects China to continue to drive global demand for commodities.

Net profit was up 41.3% on the $4.36 billion posted for the same period the previous year. Strong demand, high commodity prices and solid production had allowed it to achieve record results in all key earnings measures.

You can probably include India as another place that will continue to drive the demand for BHP Billiton commodities. BHP Billiton has been on a low P/E yield recently and this has driven the price higher as it should from a top notch company.

It has risen more than 15% in recent weeks as it should. At its lowest point it was sitting on a PE ratio of around 8 times earnings. Check out my recent post on BHP and check the date and price. The article is available at http://asx-investing.blogspot.com/2007/01/bhp-set-to-rise.html or try using he link in the side menu for all posts on BHP.

You will notice in my recent article that I saw BHP as a fundamentally sound company at a good price. I also said "I believe (BHP Billiton) is set to take a substaial move in the right direction."

Good Luck Investing.

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