Welcome to Dr Lincoln's blog

Welcome for visiting my blog. Hope you enjoy the visit and always welcome back again. Have a nice day!

2011-02-01

Better ways to milk the BHP cash cow

Comments on Stephen Bartholomeusz “Milking the BHP cash cow”, 1/02/2011, http://www.businessspectator.com.au/bs.nsf/Article/BHP-Billiton-Rio-Tinto-copper-gold-iron-ore-pd20110201-DN3SR?OpenDocument&src=sph&src=rot

It appears that the big mining companies might need to establish capital assets management teams within.

Clearly they have the expertise in their own mining industry.

But they probably lack the expertise to fully take advantage of their cash or liquid assets and the world equity markets over both shorter and media terms.

Further, this type of assets management teams can combine the flexibility of movement between equity markets and merger and takeovers to generate returns that are not available without such synergy. It is the economies of scope, perhaps.

In that respect, Telstra is probably in the same basket in terms of cash flow, although it should have diversified much earlier.

No comments:

Post a Comment