BHP BILLITON - IS IT IN TROUBLE ? Mar 22, 2011 8:03 am HAS THE JAPANESE SITUATION AFFECTED THE MINING AND EXPORT OF RAW MATERIALS BY BHP? VERY LIKELY! MY INDICATORS SHOW AN INCREASE IN PROBLEMS MAY WELL BE AHEAD. AUSTRALIAN FLOODS, JAPAN'S QUAKE, TSUNAMI AND ENSUING POWER PROBLEM, POINT TO A SHAKY MARKET FOR BHP. BUT WAIT, THERE'S MORE... ![]() Please note: The image above are not of children's toys in a puddle, they are the huge mining trucks and the trees in the background are not bonsai sized. PIKE RIVER COAL shares dropped like a stone well BEFORE an explosion led to the mine becoming a tomb for 29 miners left inside. The reason I have raised the Pike River Coal tragedy, is because BHP has similar V.C. Indicators (Vaughan-Code Indicators) as did Pike River, but in this case, prior to the Japanese earthquake. And for that reason I would like to make my discovery a point of interest at this stage, a TIME-MARKER if you will, of which I believe lies ahead for the mining giant. It does not look good. BHP has recently been subject to massive flooding in Australia affecting their mining operations. Water soaked stockpiles of coal results in less efficient combustion for the consumer and therefore demands a lesser price for BHP products and opens the door for invitations to competitors raw materials. Further, Japan is now deficient in power generation due to the devastating effects of the recent Earthquake, Tsunami, and now the nuclear fall out threat. There is the fear that other Nuclear Power Plants may need serious maintenance, and investigations are underway to look for potential operational problems. I believe there is a connection with BHP and Japan's disaster. The people of Japan are questioning their government about the promises made them of the safety of the nuclear power plants prior to their being constructed. The Japanese Government is now under threat of public scrutiny because of the radio active fallout being detected. The people were promised a reactor meltdown would never happen. The ability for Japan to manufacture iron and steel products may well be limited. India, is also a formidable contender in mined raw materials trade. I learned that a ship load of raw material en-route to Japan just before the quake on the 11th March, was cancelled by Japan and BHP diverted their cargo to China, but had to greatly reduce the price of the shipment. Potentially, this is a TREND ALERT and shows as such on my V.C.I. charting software! BHP investors may well take heed of this information. As time progresses for BHP, and other markets potentially affected by the recent events, along with international trends, V.C.I. provide a time scale not confined to past and present events alone. One prominent television producer in New Zealand has written, and I quote... "He (Peter Vaughan) has tirelessly developed a system using codes and complex mathematical formulas to predict events (irrespective of any time restraints), with amazing accuracy." ALL ROADS LEAD TO ROME The advent of all these collective symptoms in Japan, Australia and with India's mining industry, reveal there might be a developing problem for BHP Billiton now, but more so in the near future. CHART INDICATORS The charts I have on BHP Billiton for 2011, 2012, 2013 and 2014 are like a chain of events initiated very recently, in fact from February 2011. However, this was not as impacting as the scale of the event indicated this month which is in direct alignment with the event in Japan on the 11th March 2011. It is from this month on (March 2011) that I calculate BHP may be due an overhaul with much of it's operations. However, due to time restraints and information I am not privy to, it is my belief that BHP Billiton is going to be working very hard to maintain balance, and trading will require exceptional marketing skills. Peter Vaughan |
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