BHP Billiton (BHP)

Large mining conglomerate with about $72 billion in revenues. Of that about $23 billion is iron ore and about $12 billion is petroleum. So basically over 50% of their revenues come from 2 major sectors. Trading at a cheap multiple and pays a nice dividend and will probably do well. Have a lot of capital expenditure coming up, which they have cut back on.

Believes there is substantial inflation and commodities are highly correlated with inflation. Best of breed operator. China will help them.

Good yield, good balance sheet and best of breed operator. Thinks there will be benefit from stimulus in China now that elections are over. Have energy assets. Long-term he likes it.

Far beyond gold company. Big commodity player. ECB has launched the big bazooka with QE3. It is tremendously bullish for gold and he thinks it goes higher, measured in years.

The problem that is being faced by any of these metal companies is that they have performed well over a number of years but over the last 18 months there have been lower lows and lower highs generally along with decelerating earnings and revenue lines. There are deteriorating fundamentals in Asia.