Mining Stock Reports Spending Reduction; Special Report by Leading Financial Newsletter Profit Confidential

Share Article

After so many years mired in a weak global economy, many investors were hoping that 2012 was the year of the rebound. Not so fast, according to Sasha Cekerevac, contributor to Profit Confidential. Cekerevac points to large firms like BHP Billiton Ltd., which are reducing the total amount of money spent on expanding production and developing mines due to lower forecasted growth estimates for the global economy.

Mining Stock Reports Spending Reduction; Special Report by Leading Financial Newsletter Profit Confidential

Mining Stock Reports Spending Reduction; Special Report by Leading Financial Newsletter Profit Confidential

“BHP previously estimated they would spend over $80.0 billion over the next five years on mine development and expansion,” says Cekerevac. “BHP reports that it sees a weaker global economy and lower prices for the commodities that it mines and sells.”

Past News Releases

RSS

After so many years mired in a weak global economy, many investors were hoping that 2012 was the year of the rebound. Not so fast, according to Sasha Cekerevac, contributor to Profit Confidential. Cekerevac points to large firms like BHP Billiton Ltd., which are reducing the total amount of money spent on expanding production and developing mines due to lower forecasted growth estimates for the global economy.

“BHP previously estimated they would spend over $80.0 billion over the next five years on mine development and expansion,” says Cekerevac. “BHP reports that it sees a weaker global economy and lower prices for the commodities that it mines and sells.”

In the article, World’s Largest Miner Cuts Spending, Sees Weak Global Economy, Cekerevac outlines some concerns that face multi-national firms.

“Part of the reason is the European crisis,” says Cekerevac. “Weakness in China is also being felt, as large corporations are cutting back their growth estimates”

According to Cekerevac, the first significant warning sign for BHP based on technical analysis occurred during the summer of 2011, as the stock broke below the uptrend line going back to 2009. “The stock naturally fell to the 200-period moving average,” says Cekerevac. “The stock then used the 200-period moving average as support, as it tried to regain the momentum to start a new bull run.”

With regard to the current sell-off in BHP stock, Cekerevac says “For all of the bad news we’ve discussed, the stock could make a short-term bounce, as it is entering oversold territory.”

Cekerevac believes that, unless the stock price can exceed its long-term downtrend resistance level, it won’t be in a new bull market.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Michael Lombardi
Follow us on
Visit website