Re: Material/Mining Stocks
From your list I own BHP, VALE, & AAUKY. Not on your list I have shares in AGPPY, AU, GFI, CNX (mainly coal & NG) & AMHPF. I sold my junior minor RIC which actually sells at a reasonable PE of 16 (many of these JR miners do not even have earnings). I also liked that they were located in Canada. My group of stocks has limited Canadian exposure.
http://finance.yahoo.com/quotes/AGPPY.PK,AU,GFI,AMHPF.PK,RIC,BBL/view/dv;_ylt=Av575vxz9PBg1VAkmzqHqLsLv7gF;_ylu=X3oDMTEydDA3OGxkBHBvcwMxMQRzZWMDeWZpVGFibGlzdARzbGsDZGV0YWlsZWQ-
These companies represent 15% of my portfolio at this time. It has been as high as 20% early this year. Many of these miners and natural resource stocks I have owned for 10 years or more. From time to time I have been peeling off shares and moving the proceeds into the integrated oil companies but keeping the proceeds in the natural resource theme.
You will notice that BHP and BBL are essentially the same company but held in different currencies (BBL= British pound, BHP=Australian $)
My overall theme for this group is that they help the portfolio preserve it's purchasing power through the ownership of companies that own natural resources and precious metals. My biggest concern is if any one or more of these companies would suffer a significant loss in value due to a European EURO collapse.
What's your take on how this general sector would fair if such an event occurred and would any one of these companies benefit more than another (through their traded currency) from the collapse of the Euro?
My thinking is that the Australian Dollar would be a possible beneficiary currency and maybe the Canadian $. This would point to BHP as being the best performer of the group. BHP is the largest and most diversified company too.
This group has always generate good income for my portfolio but now I am relying on the group to help protect the portfolio from a EURO implosion. Is my thinking on the right track?
EKS |
