Miners round up: BHP, Talisman, Vale
Here is a brief miner stock round up for you to expand your research on:
BHP Billition
Owned the stock for 10 years, did not have enough sense to part of it at the pick. I thought a falling dollar could fuel underlying commodity run, but there was only one paragraph in my econ textbook about deflation. If you like commodities and international exposure this is a good pick.
BHP is also best in class and will wait for other miners to fall aprat in pieces from extrmely high debt. I shoter this one, I admit I was wrong with messing with this very well moated company. I fear for RTP and TCK
Talisman Energy
Low P/E and I think the canadian dollar and oil will outperform the US dollar over time from here, giving this company a pretty strong tail wind to outperform the S&P 500.
VALE
Vale, as the company is known, is the world's LARGEST producer of iron ores but is also engaged in a variety of activities through its various subsidiaries...these are the types of metals/minings companies you want to own: they are highly diversified through their wholly/partly owned subsidiaries and receive the majority of their profits from emerging/developing markets. Seriously this company does almost too many things haha: copper, coal, potash (which we all know about bc of POT), aluminum, and other precious metals not to mention they operate various logisitics systems in their home country of Brazil such as railroad terminals and a port which are all integrated into their mining/minerals business. The stock has been taking a beating lately; however I believe is a great buying opportunity if you are looking for the mid to long term investment. VALE pays a middle of the road dividend which it is not a bad thing. This company is also looking to make some acquisitions. The price of oil has gone down more than 20% since its record high in june and that is helpful since transportation costs for iron ore go down which in turn helps drive demand. Last but not least, Iron is a necessity in any country and for tons of industries. Demand is not going down because the economy has slowed down in the US. One has to think globally; after all, this is the biggest producer of one of the most basic most needed commodities.