Tuesday, December 7, 2010

BLT.L BHP Billiton

Having sold out of BLT.L some time ago, I suddenly decided I wanted back in.Why's that? Read on ...

On 01-Dec-2010, a director purchsed £903k worth of shares. That's a lot. They do not appear to be from the exercise of options. BLT's current ROE is 25%. It's median ROE over 10 years is 26.8%. BLT is a highly profitable company. Its ROA is 15.5% - again, highly profitable.

It's median PBV over 10 years is 3.43. Current PBV is 1.73 - implying a return of nearly double. BLT has a mkt cap of £53b, a z-scoew of 3.47, EGP1 58%, EGP2 4%, Yld 2.3%, PER 13.18. Its PER isn't, again, in bargain basement territory, but I think all the factors combined make it a small buy.

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