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DewDiligence

05/10/10 7:08 PM

#850 RE: DewDiligence #846

Nice move today for BHP/BBL, and hats off to Kadaicher for flagging the oversold status of these stocks vis-à-vis the proposed mining tax.

BBL rather than BHP remains the better way for US-based investors to own this company insofar as the two stocks have identical economic claims on dividends and liquidation value of the dual-listed company. At some point, the spread between the two stocks will close, so there’s no reason to pay a premium for BHP relative to BBL unless your goal is a short-term trade.