The Terms Of The BHP Billiton Spinoff Of South32

I’ve been conversing with the investor relations department at BHP Billiton trying to figure out the terms of the South32 spinoff of BHP Billiton for American shareholders that own American Depository Shares (ADSs). As an aside, the name South32 is because BHP Billiton will be spinning off assets that are located in both Australia and South Africa, and they both share the geographic 32nd South parallel line of latitude.

Although the regular shares that trade in Britain will be spun off with a 1:1 ratio, each owner of an ADS share in BHP Billiton will receive 0.4 shares of South 32. If you own, say, 100 shares of BBL and the demerger gets approved, you will have 100 shares of BHP Billiton paying you $248 in immediate annual dividend income (because the management indicated that the dividend won’t be debased to a lower amount to reflect the South32 spinoff) and you will also have 40 shares of the new South32 after the spinoff.

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The Chorus Of People Criticizing Conoco Phillips

Here is a quick piece of information that will help you funnel oil-related news better. Whenever you hear people talk about current production in the Bakken oil fields, that usually refers to Exxon Mobil and Marathon Oil (the smaller players in the Bakken fields are Whiting Petroleum, Continental, and Hess, and this is why these smaller companies are frequently linked in discussions about mergers with Exxon and Marathon). Whenever you hear people talk about Eagle Ford oil field, the big players are BHP Billiton, Conoco, and Marathon Oil (Chesapeake and Anadarko are the smaller players there that often get brought up in the merger talks).

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J.P. Morgan’s Dividend Increases Should Come As No Surprise

Over two years ago, Warren Buffett mentioned that he owns 1,000,000 shares of J.P. Morgan in his personal account. He expressed his admiration for the CEO Jamie Dimon, but he did not go into much detail explaining why he thought J.P. Morgan was a great investment. If I had to guess his answer, I suspect it would be this—J.P. Morgan continues to mint money even though the headlines about the company are frequently negative and the company had to cut the dividend during the financial crisis. The gap between actual business results and perceived business results exists when it comes to many banks, and J.P. Morgan is no exception.

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Why Amazon’s Expected Delivery Dates Are So Far In Advance

If you have ever purchased anything through Amazon, you may have noticed that the expected date for delivery is often two or three weeks ahead of the time you made your purchase. Just now, I was looking at items that would be purchased on March 17th and would come with an expected delivery date of March 29th. Usually, these items arrive by the 23rd or so.

Have you ever wondered why Amazon does this? If you only give it a passing thought, you might figure that Amazon is trying to take advantage of the underpromise/overdeliver psychology tendency that often causes satisfaction. If they tell you that an item will arrive on the 23rd and it arrives on the 23rd, you will think that the item arrived when expected. If the expected delivery date is March 29th and you receive the good on the 23rd, you might send warm thoughts to the deliver company because it arrived early.

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