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Now that BHP [stckqut]BHP[/stckqut] has given up their efforts to acquire Potash [stckqut]POT[/stckqut], I am returning Potash to my Watch List. Potash never stopped being a Good Company but it was difficult to be confident in an investment in the company with BHP in the hunt.

From BHP’s website:

15 November 2010
BHP Billiton (ASX:BHP/LSE:BLT/NYSE:BHP and BBL/JSE:BIL) today announced that it has withdrawn its offer to acquire all of the issued and outstanding common shares of Potash Corporation of Saskatchewan Inc. (“PotashCorp”) (NYSE:POT/TSX:POT) (the “Offer”).

BHP Billiton has determined that the condition of its Offer relating to receipt of a net benefit determination by the Minister of Industry under the Investment Canada Act cannot be satisfied, and accordingly, the Offer has been withdrawn. A total PotashCorp-related transaction cost of approximately US$350 million, of which approximately US$250 million related to the US$45 billion acquisition financing facility, will be recognised as an exceptional item in the December 2010 interim accounts.

BHP Billiton continues to believe its Offer would have resulted in a significant net benefit to Canada, Saskatchewan and New Brunswick. As a package, the proposed undertakings offered by BHP Billiton in a signed, written submission to the Minister of Industry were unparalleled in substance, scope and duration, reflecting the importance of potash to Canada and Saskatchewan. The company had offered to commit to legally-binding undertakings that would have, among other things, increased employment, guaranteed investment and established the company’s global potash headquarters in Saskatoon, Saskatchewan.

The investment commitment included US$450 million on exploration and development over the next five years over and above commitments to spending on the Jansen project. An additional US$370 million would have been spent on infrastructure funds in Saskatchewan and New Brunswick. BHP Billiton would also have applied for a listing on the Toronto Stock Exchange.

In addition, BHP Billiton was prepared to make a unique commitment to forego tax benefits to which it was legally entitled and, as a condition of the Minister’s approval, BHP Billiton was prepared to remain a member of Canpotex for five years. Both of these undertakings were intended to allay any concerns the Province of Saskatchewan may have had regarding potential losses in revenues.

Further, to give the company an even stronger Canadian presence, BHP Billiton undertook to relocate to Saskatchewan and Vancouver over 200 additional jobs from outside Canada. BHP Billiton would have maintained operating employment at PotashCorp’s Canadian mines at current levels for five years and would have increased overall employment at the combined Canadian potash businesses by 15% over the same period. BHP Billiton also made a number of additional undertakings in relation to Saskatchewanian and Canadian participation in senior management roles within the combined potash business, within a new Potash Advisory Board and also on the Board of BHP Billiton.

Local suppliers would have been guaranteed a full and fair opportunity to provide goods and services and BHP Billiton undertook to spend at least US$8 million per annum on community programs, primarily in Saskatchewan and New Brunswick, while raising overall community spending from PotashCorp’s current levels to BHP Billiton’s levels. BHP Billiton also offered to invest in the University of Saskatchewan to create a Mining Centre of Excellence to enhance the province’s mining capabilities and to raise the international profile of both the University and the province.

BHP Billiton was prepared to accept an unprecedented monitoring and compliance regime that would have provided the Government with additional assurances that the undertakings would be complied with, including making available a US$250 million performance bond.

During the investment review process, BHP Billiton engaged extensively with officials from the Investment Review Division of Industry Canada. In view of the reasons underlying the Minister’s interim decision of November 3, the company believes that the Minister of Industry would have required additional undertakings beyond those BHP Billiton had already offered which would have conflicted with BHP Billiton’s business strategy and been counter to creating shareholder value. BHP Billiton Chief Executive Officer Marius Kloppers expressed disappointment at the outcome while emphasising the company’s commitment to Canada and disciplined approach to shareholder value.

“Unfortunately, despite having received all required anti-trust clearances for the Offer, we have not been able to obtain clearance under the Investment Canada Act and have accordingly decided to withdraw the Offer. We remain committed to Canada and we plan to develop a significant presence in the potash industry in Saskatchewan. As part of those plans we will continue to progress our Jansen Project and other development opportunities,” he said.

“Our core business strategy of diversifying our investments across geographies and commodities differentiates us and, more importantly, continues to deliver value to our shareholders and the communities and countries where we operate. We have an unparalleled portfolio of tier one assets, which we believe can sustain decades of increased production. We plan to invest US$15 billion in our global business this financial year and expect our ongoing capital commitment to continue to deliver robust production growth,” Mr Kloppers added.

BHP Billiton also announced its intention to continue the company’s strong track record of returning excess capital to shareholders by reactivating the remaining US$4.2 billion component of its previously suspended US$13.0 billion buy-back program.

BHP Billiton Chairman Jac Nasser said: “The decision to reactivate the buy-back program is entirely consistent with our commitment to maintain an appropriate capital structure while we continue to make substantial investments in our growth projects. BHP Billiton has a strong track record of returning capital to shareholders. From 2005, BHP Billiton has completed buy-backs totalling US$12.7 billion or 11% of issued capital, and has also paid out US$17.9 billion in dividends.”

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GUEST POST BY KAREN OATES

To succeed at trading the stock market, you must be fully aware of how your mindset plays the most crucial role in your success. The stock market is driven by human emotion and unless you have control of your actions and reactions, it can be difficult to get the results you desire and it can in fact see you give up early.

Here are some useful tips on how to fortify your trading mindset.

  • Always take full responsibility for your trading decisions.
  • Successful traders make up their own minds whilst investors, as a rule simply follow the trend of the crowds
  • Consider and be open to good advice from experts, realizing that the final and ultimate decision is up to you and you alone.
  • In every trade situation, regardless of the loss or profit, focus on the learning opportunity and how well you executed your plan. Do not let the + or – signs for that trade dictate whether the trade was a good on or not.

Avoid the pitfalls of ‘over trading’ and ‘under trading.’

  • There are basically two types of over trading. Trading too often and trading too many shares/contracts.
  • Remember that there really is no good reason to trade constantly, since extreme over-trading creates stress, produces high commissions and can often lead to more losses.
  • Market forces do not last forever and time has shown various examples of the law of gravity in the trading market- that whatever comes up must go down. – and vice versa.
  • Instead of grabbing every opportunity that comes along (or thinking that it is an opportunity) make sure each trade setup meets the criteria of your trading plan, don’t be over confident or scared of making trades.
  • Utilizing a risk calculator to determine the appropriate position size before you enter a trade can help you determine how many shares/contracts you initially buy. You can start off with a small position and add as the trade continues in your favor. It relieves stress to know that the amount at risk for each position you hold is well proportioned to the size of your entire account and this is great asset management.
  • Whenever you feel that you did not stick to your trading plan and made a mistake, quickly learn from that and let it go.

Always think like a successful trader.

  • Thinking and acting as a successful trader turns you into a successful trader, since your thoughts and actions create what you get in your life.
  • Thoughts are like muscles, the ones you use the most will grow to become the strongest. Work on the thoughts you want to develop and focus on them regularly, since it has the tendency to become action, action become habits, and habits determine results.
  • Always think of success and you are much more to be on your way to success.

Finally, relax and enjoy your trading! If you don’t enjoy what you do then that will show in your results.

Having fun and enjoying at what you do is a very good motivator to give you focus on successful trading

Go have fun and make yourself some serious money!

Karen Oates is a seasoned options trader and mindset coach who excels at helping traders understand themselves and the stock market by using a ‘keep it simple’ trading plan and the mind tools of success through mastery of mindset, focus, behaviors, believes and strategies.

Karen is certified as a:
Master NLP Practitioner
Master Results Coach
Performance Consultant
Specializing in Advanced Subconscious Reprogramming and Master Hypnosis
http://www.outofmymindtrading.com

Article Source: http://EzineArticles.com/?expert=Karen_Oates

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GUEST POST BY SEAN KELLY

Are you a senior citizen that is struggling to cope with your monthly expenditure and bills due to a decrease in income? Or perhaps you know a senior citizen who could be in this predicament? If yes is your answer, one solution that you might want to consider is the reverse mortgage option. Reverse mortgage may be a foreign term to many, but it is one that may help eliminate all your cash flow complications in the later portion of your life, provided you do it right. Many senior citizens have utilized reverse mortgage as a valuable and effective tool to supplement retirement incomes, and you could be one of them as well!

Nevertheless, you need to be confident that you first qualify for this solution, and that the reverse mortgage process is the option that you want to undertake to solve your cash woes. Senior reverse mortgage is basically a special loan that is only available to seniors against the equity of a home. The amount of equity in the home that you live in is converted into cash that would then be paid to you by a lender. The method of payment varies in accordance to your preference; you could opt for a lump sum payment, or the more common option of monthly payments. You could also opt to transform the equity into a line of credit that you could withdraw at any time convenient to you.

It is advisable only to consider this option if you have completely paid off your home, or you only have a small balance that you owe to your lender when you consider reverse mortgage. To qualify in terms of legality, you need to be at least 62 years old to be able to take advantage of this opportunity. How much you can borrow is determined by factors such as your age, how much your home is actually worth and the current interest rate to name a few.

Is it advisable to consider reverse mortgages for seniors? Let us look at the benefits and drawbacks of this solution first before we draw any conclusion, starting with the advantages. If you opt for the monthly payment option, you practically enhance your monthly cash flow immediately to supplement your current income. And if you have a traditional mortgage left that you have not paid off, you could probably settle that loan with the proceeds from your reverse mortgage.

In accordance to the rules of reverse mortgage, you do not have to repay the money to your lender as long as you continue to physically live in the home. Your payments are postponed until you either pass away, or you sell the home to another party. You would also probably have to repay your lender if you fail to live in your home for a year at a stretch. The lender would usually not question you about what you are about to do with the cash that you obtain, thus you are free to spend it as you see appropriate. The senior would continue to keep ownership of the home as well.

On the other hand, if you are looking to move out of your current home in the near future, the option of reverse mortgage might not be too appealing to you. This is due to the fact that you would have to repay the amount to your lender once you move out. Closing costs attached to reverse mortgages are considerably high as well, thus you might want to reconsider this option if you are planning to move out of your home in the next couple of years. And it is definitely not advisable if you are planning to invest the amount that you obtain from reverse mortgage into a risky investment venture. The loan amount is usually only a portion of the value of the home, thus you do not have the guarantee of being able to utilize all the equity that you own within the home.

In a world where pensions and social security allowances no longer support a senior citizen’s daily expenditure, the option of reverse mortgages must certainly be seriously considered.

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