If you could buy only one commodity stock, what should it be? Mary Anne and Pamela Aden, long-standing experts in the natural resources sector, think that one stock should be BHP Billiton (NYSE: BHP).
The editors of The Aden Forecast explain, "The hot Asian markets are keeping demand strong for commodities. Indeed, the commodity move has been gearing up, one by one. Some markets will be stronger than others at times, but they are all in a major rise with demand being the driving force, which makes this mega move even more powerful."
The advisors continue, "China and Asia in general have been booming for many years now. The slowing economy in the U.S. caused concern that the fiery growth in Asia would cool down. It certainly could with time, but so far there are no signs of this at all."
Meanwhile, they notes, demand for raw materials remains and 2007 may end up seeing China's economy expand at the fastest pace in 12 years. To benefit from this trend, the sisters says, "BHP Billiton has long been one of our favorites because it's the best way to stay invested in the whole raw materials sector."
They notes that Billiton is the world's largest mining organization, stating, "It's a leader in steel making, it's the world's third largest producer of copper and nickel, second largest exporter of coal, fourth largest producer of uranium... and the list goes on." They conclude, "So if you have to buy just one natural resource company, let it be BHP."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.
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Reader Comments (Page 1 of 1)
7-25-2007 @ 12:20PM
Larry said...
If I could buy only one, I'd buy Russia's Norilsk Nickel.
7-25-2007 @ 1:10PM
Gumby said...
Wrong
BHP is already full valued stock with little more to go higher. Go to Alcoa!! Why? Alcoa helped Alcan by making an offer to make Alcan fully realized and even better when Rio Tinto rushed in to rescue his Canadian cousin Alcan from Alcoa. Alcoa is left and forgotten by Wall Street. Alcan went up to 100 from 50 while Alcoa stayed the same. Alcoa can double anytime.... Aluminium has yet to catch up with the rest of metals that had soared in prices ... copper went up to $3.50/lb from 75 cents in 2000, Nickel to $12 from $3, Zinc to $1.75 from 45 cents, moly to $20 from $3, etc,etc. Aluminium historically sells for same as copper is still lagging at $1.25 from 75 cents. Alcan shareholders would be stupid to vote yes to Rio Tinto now because aluminium has yet to go up to $3. When it happens, Alcan would be worth $150 easily. Rio preemptively took Alcan from sharehodlers and will enjoy the future profits growth. That is why Rio didnt offer Rio shares to Alcan shareholders. Alcoa offered a mixture of cash and shares so that Alcan can get some shares to hold for definitely more share appreciation with new Alcoa-Alcan in the near future.. Alcan shareholders and mutual funds that holds Alcan shares can still vote down Rio offer and tell management to go back to Alcoa even at lower price offer because Alcan and Alcoa will produce more aluminum than Rio and Alcan together. Something like 8 million tons to only 5 million tons. Alcoa and Alcan will tower over the rest of competitiors worldwide. I dont understand why Alcan management turned down Alcoa offer and go for short term higher price from Rio which sounds better but not so in the longer term.
7-25-2007 @ 2:05PM
Michael Schneider said...
In a tour of Australia, legendary investor Jim Rogers singled out BHP and said he doesn't know if BHP will get bought out but he thinks it is very cheap. The stock was quite a bit lower at the time and one of many good calls by Jim Rogers in the past few years.
The BHP comments along with scores of items about Jim Rogers including our original item on the townhouse he is selling in New York and his latest comments in Singapore are available free in the Channeling Jim Rogers section (yellow label, top) at http://www.Barrelomoney.com.