sp recovery, page-4

Hi GKJ

Without knowing much about the company maybe it is mine life / not enough diverse projects.

A company like BHP has its fingers in many pies. Continual acquisitions etc, hence the High Price to Earnings Ratio.

If a company was only going to exist for 5 years (and I'm not saying this about CDU) you wouldn't buy them on anywhere near a 18.2 Price to earnings ratio.

This is assuming of course the company doesn't reinvest its earnings..