BHP BILLITON LTD. ADRs $21 - New York symbol BHP

BHP BILLITON LTD. ADRs $21 (New York symbol BHP; Conservative Growth Portfolio, Resources sector; ADRs outstanding: 1.6 billion; Market cap: $33.6 billion; Price-to-sales ratio: 1.3; Dividend yield: 11.8%; TSINetwork Rating: Average; www.bhpbilliton.com) will write down its U.S. onshore oil holdings by $4.9 billion (after taxes) in response to the decline in oil prices. In 2011, it spent $20.6 billion on acquisitions of U.S. shale oil and gas properties. The company is also seeing sharply lower prices for its other commodities, including iron ore, metallurgical coal and copper. The resulting decline in BHP’s cash flow will probably prompt it to cut its $2.48 dividend, which yields a high 11.8%. BHP Billiton is still a hold.

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