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Is Bhp stock prices rising too fast

Is there more gains in Bhp ... Is the gains worth the yield it has have .



Is the stock prices moving too fast for Bhp ? is the price good enough now for long term investment ? is it a good short term buy ?
BHP BILLITON's treasure trove of resources at Olympic Dam in South Australia continues to grow but the market is holding off handing out a share price reward until BHP releases matching production expansion plans.




The company is yet to update its now hopelessly dated $US6 billion cost estimate for expanding Olympic Dam's annual output to 500,000 tonnes of copper (127 per cent higher) and 15,000 tonnes of uranium (200 per cent), with attendant increases in gold.
And because of the massive resource upgrade revealed in the group's annual report, released yesterday, there is a growing expectation that BHP is actually shooting for an expansion that would involve copper output of 1 million tonnes a year, uranium output of 30,000 tonnes and attendant increases in gold — all at a cost of $17 billion.
The mid-week rally last week gave all followers of this column a chance to do what I've always urged - take at least partial profits in a volatile market to cover your backsides against inevitable downturns.
Everything I've sold in the past week I still believe in longer term, and will probably buy back at lower prices.
The Speculator has never been a devotee of share charting, where true believers of this mathematical art plot stock prices against turnovers and moving averages of prices over, say, 90 days against more volatile weekly moves. They then deduce buy or sell signals. In a volatile market, if enough traders are addicted to the art, charting predictions can no doubt become self-fulfilling.



Now the good news. Our cancer-cure hopeful, Viralytics (ASX code: VLA), has won approval to increase the dosage of its attack cocktail by a tenfold margin in a scale-up of its human trial on late-stage melanoma patients. On the day following the news last week, the stock price rallied 16% to 8.7c on a turnover of 800,000, but in line with the rest of the market weakened to 7.8c at the week's close. We paid 8.9c when we entered the stock ( B, May 15) ahead of the start of clinical trials through to mid-2008. It's early days yet, so we will stay with our holding






Meanwhile, although we've sold out of zinc-silver-lead prospector TNG, the company traded "ex" a one-for-20 free distribution of shares it held in Western Desert Resources to its own shareholders on September 6. So we've added our entitlement of 200 shares in this gold-uranium prospector to the portfolio and will consider increasing that holding in the future.

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