Fuel Your Portfolio With BHP Billiton (NYSE: BHP): The Best-Run Commodities Company In The World

by Tony Daltorio, Investment U Research

Some companies just stand out – both in their own sectors and in the larger market.

Australian firm BHP Billiton (NYSE: BHP) is one of them.

As the largest and most diversified commodities producer in the world, BHP has leading positions in most key, low-cost, metal and mineral deposits in the world.

And as if that weren’t enough, it also has a solid position in oil, thanks to its petroleum division, which had operating profits of $4 billion last year.

Impressively, that total only made the petroleum division BHP’s third-best performer in 2008. Its iron ore segment scooped up $6.23 billion, while base metals enjoyed a $4.62 billion operating profit.

Crucially, that sets BHP’s oil division apart from its competitors. Not only

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Bemis Company, Inc. (BMS) reported third quarter earnings of 48 cents per share, above the Zacks Consensus Estimate of 39 cents and year-ago EPS of 43 cents. Earnings growth in the quarter was primarily driven by strong operating performance in the Flexible Packaging business, helped by improved sales mix and successful cost controls by the company. Quarterly sales dropped 8.7% year over year to $898.9 million. The second quarter acquisition of the South American rigid packaging operations of Huhtamaki Oyj contributed 1.9% to the third quarter sales. This was more than offset by a negative currency translation effect of 3.6%. The remaining 7.0% decline in sales came from lower volumes and selling prices, partially offset by improved sales mix. Sales in the Flexible Packaging segment were down 7.5% compared to last year, as positive contribution from acquisition and improved sales mix were more than offset by ...

Rio Tinto PLC (RTP), the heavily indebted miner, has now cashed in over $7 billion in total by selling its non-core assets after its merger with Canadian aluminum group Alcan. Last week, Rio agreed to sell its Alcan composites business to Switzerland's Schweiter Technologies for $349 million. The deal is expected to close by the end of the year. The company targets to sell $15 billion in assets to lighten its debt burden it piled up from the $38 billion acquisition of Alcan in 2007. At the end of June 2009, Rio's total net debt was $39.1 billion. However, after the rights issue scheme in July, it managed to cut down its debt to $24.3 billion. It completed the $15.2 billion of rights issue in July. The biggest check the company has received so far from its clearance sales was for divesting its business in ...

Early this week, Vale (VALE) acquired Corumbá iron ore mining operations from Rio Tinto Plc (RTP) for $750 million in cash. It was the part of a larger transaction that included the sale of a potash project and certain exploration assets in Canada . The potash deal closed in February for $850 million. Management is expected to benefit from potential synergies, through augmented asset and portfolio flexibility, lower administrative and logistics costs and rationalization of the use of reserves. Companhia Vale do Rio Doce is benefiting from a series of acquisitions. Recently, the company spent US$922 million for acquiring potash assets in Argentina and coal assets in Colombia , in line with the company’s strategic focus. The company also announced the signing of a memorandum of understanding along with Companhia Siderurgica do Pecem (CSP), the state ...

Harry Winston Diamond Corp. (HWD) recently reported a second-quarter net loss of $24.5 million, or 32 cents per share, on sluggish sales and foreign exchange loss. This compares with a net profit of $49.9 million, or 81 cents, in the year-ago period. Quarterly performance was also worse than the Zacks Consensus Estimate for a loss of 5 cents.

Toronto-based Harry Winston is a specialist diamond enterprise with assets in the mining and retail segments of the industry. The company supplies rough diamonds globally from production received from its Diavik diamond mine in Lac de Gras, Canada. The company has a 40% stake in this mine, which is operated by Rio Tinto Plc (RTP). Harry Winston also retails fine jewelry and watches through its wholly owned subsidiary, Harry Winston Inc., with outlets in the U.S., Europe and Asia.

The company’s quarterly sales plunged 49.1% year over year to

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China is Investing Billions in Renewable Energy One firm has already built China’s largest wind turbine manufacturing factory. And it’s working with the Chinese Science Academy to develop new wind, solar, and geothermal technologies… for which it will own 70% of the rights. But this company’s business reaches far beyond the Chinese border, with operations in Southeast Asia, the Middle East, Africa and Eastern Europe. It’s first quarter net income increased by 294% over a year ago. Click here for the full report.

A $15 billion deal for liquefied natural gas (LNG) involving Australia, China and global-oil heavyweight Exxon-Mobil Corp. (NYSE: XOM) has prompted many investors to worry that China may be using its global-markets muscle to “paper over” cracks in the global economy.

In reality, however, this mega-deal is a harbinger of what’s to come, and highlights the road that global investors must travel in their journey …

China is pressing Rio Tinto PLC (NYSE ADR: RTP) hard for a sharp reduction in the prices the company charges for its iron ore. But mining companies like Rio, who have had their bottom lines eviscerated by a slump in commodities prices, may have a hard time acquiescing.

China’s 470 million ton demand for steel is considerably lower than the country’s annual production capacity of 660 million tons, and to that effect, China announced a three-year ban on new mills The New York Times reported.

“Disorderly competition” has pushed up iron ore prices, caused a glut of production capacity and resulted in “serious losses,” said China’s Information Minister Li Yizhong. “My ministry will not approve any expansion-related projects in the iron and steel industry. I would like to call on the whole industry, all iron and steel producers, not to construct any new projects

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Vale SA (VALE), the world’s biggest iron-ore producer, yesterday announced its plans to offer two series of US$65.7 million convertible notes due in 2012 in the global capital markets through its wholly-owned subsidiary Vale Capital II.   In 2012 or anytime earlier, the first series of VALE-2012 notes will be compulsorily converted to American Depositary Shares (ADSs), each representing one common share of Vale, and the second series of VALE-2012 notes will be converted to ADSs, each representing one preferred class A share of Vale. Together, the ADSs will represent a total of 18.4 million common shares and 47.3 million preferred class A shares of Vale. The whole operation is expected to bring some R$$2 billion (US$1.0 billion) to Vale, which it will use to meet general corporate needs.   The uncertainty in the recovery of the global economy is affecting world metal prices. Last day base ...

Iron Ore Rising… Is the current rally in stocks is just a bear market variety, or is it the real thing? The debate has been going on for quite some time now…

And I don’t know the answer more than anyone else.

However, It stands to reason that one of the best indicators that might give us an early tip on recovery is iron ore shipments.

Iron ore is the basic component of steel, which is used in bridges, buildings, ships, pipes, cars and trucks. Even concrete highways and bridges have steel rebar embedded in them for added strength. It’s perhaps the largest ingredient in the infrastructure of the industrialized world.

World production of raw iron ore averages about 1 billion tons per year, with China alone producing nearly half the total. Australia and Brazil produce nearly 20% apiece, and roughly 54 other countries make up the rest of the production.

One of the largest

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BHP Billiton (NYSE: BHP): Stock of the Day

Iron Ore Rising…

Is the current rally in stocks is just a bear market variety, or is it the real thing? The debate has been going on for quite some time now…

And I don’t know the answer more than anyone else.

However, It stands to reason that one of the best indicators that might give us an early tip on recovery is iron ore shipments.

Iron ore is the basic component of steel, which is used in bridges, buildings, ships, pipes, cars and trucks. Even concrete highways and bridges have steel rebar embedded in them for added strength. It’s perhaps the largest ingredient in the infrastructure of the industrialized world.

World production of raw iron ore averages about 1 billion tons per year, with China alone producing nearly half the total. Australia

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