What Would That $10 Billion Buy Today?
I couldn't help but notice that BHP was down 17% yesterday to about $35. I first wrote about BHP in February 07 when they announced a $10 billion dollar share buyback. They were at $44 and BHP did a stellar accent to almost $96 so I was looking like I was wrong for quite some time.
BHP had 1,785,946,791 fully paid ordinary shares on issue at 31 December 2000.
As at 31 December 2006, BHP Billiton Limited had on issue 3,497.1 million fully paid ordinary shares and BHP Billiton Plc
had on issue 2,468.2 million fully paid ordinary shares (i.e. 5,965.3 million in aggregate for the BHP Billiton group).
I'm am just having a peek at this... Correct me if I am wrong here, but isn't there 2x as many shares in 2006 compared to 2000?
Egad, so if we look back to roughly 5-6 years ago when the price was about $10, the market cap went up to about 19 times that price before declining... With mergers and that kind of thing some that is justified, but with currently being priced at roughly 7x the market cap of 5 to 6 years ago I'd have to do a heck of a lot of research to justify the price today...