There is no question that the economy will eventually come back, since growth and contraction is cyclical. And when growth returns so will demand for commodities like iron ore, nickel, and coal, which are a vital to the rebound in industrial production that accompanies economic recoveries. BHP Billiton, a large, diversified mining company, digs those building blocks out of the ground, and more. Worried about inflation? This Australian company also mines for gold. Think energy prices are going up? BHP has oil and gas operations, too.
The mining company gets about 20% of its revenues from business with China, a country already showing signs of expansion. And it has more than $9 billion in free cash flow and could use that money to scoop up cheap assets.
* Wall Street average annual earning growth estimates over the next 3-5 years.
--K.B.
