BHP Billiton (BHP): 'A global resource play for any portfolio'

Posted Sep 18th 2007 2:46PM by Steven Halpern
Filed under: India, China, Newsletters, BHP Billiton Ltd ADR (BHP), Bargain Stocks, Commodities, Stocks to Buy

"BHP Billiton (NYSE: BHP) should be part of any investor's portfolio," says leading energy and resources expert Elliott Gue. The editor of The Energy Strategist explains, "China is both the world's largest coal producer and its preeminent consumer. Demand for coal in Asia is growing rapidly, and China is moving from being an important net exporter to a net importer."

In light of the tight supply demand balance in Asia, he states that the obvious question is where all those coal imports will come from. One country he says that will dominate the export trade for the foreseeable future is Australia.

Gue says, "Australia has large reserves and production capabilities. And it is located relatively close to their key export markets. Meanwhile, Australia is a politically stable country with a solid legal system and a large, liquid stock market. In short: Australia is a great and politically safe place to invest."

Australian-based BHP Billiton is the world's largest producer of exported thermal and coking coal, generating around 37 million tons of met coal and 88 million tons of thermal coal annually, according to the advisor.

He adds, "And while BHP is definitely the 800-pound gorilla of the coal industry, the company is much more than just a play on coal. The company has far more exposure to petroleum products, aluminum and base metals such as nickel, iron and copper."

In fact, he points out, BHP is the world's second-largest nickel producer and third-largest miner of both iron ore and copper -- all commodities in high demand in rapidly growing Asian markets. And, he adds, while BHP certainly has vast operations in Australia, it's a "truly global firm."

Gue concludes, "In short, BHP is one of the finest diversified commodity mining firms in the world and should be recommended as part of any investor's long-term portfolio."

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.

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