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Market:	LSE ASX JSE NYSE
Sector:	General Mining
EPIC:	BLT
Latest Price:	2,139.50 (-1.86% )
52-week High:	2,631.50
52-week Low:	1,667.00
Market Cap:	45,187.80M

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BHP Billiton

BHP Billiton (ASX: BHP) is a global leader in the resources industry, with a diversified portfolio of natural resources. The company's operations include: iron ore, coking and thermal coal, copper, zinc, oil & gas and diamonds.

Mining stocks outperform Top 50 Aussie stocks

Wednesday, January 07, 2009 by Andrew McCrea

Contrary to popular wisdom, metals and mining stocks have been the best place to have your money invested over the past two months. Take a look at these facts.

The S&P/ASX 300 Metals and Mining index has gained a whopping 47 per cent since November 2008. The Top 50 stocks have risen a more leisurely 14 per cent since November. Even the Small Cap Ordinaries Index out-performed the top 50 stocks, gaining 16 per cent.

During times of economic uncertainty, prevailing wisdom is for many advisers and investors to retreat to "safety" of top 50 stocks. While top 50 stocks generally won't go out of business, in terms of returns to investors, this philosophy hasn't exactly borne fruit in recent months.

Now while this will not always be the case - and mining stock selection is inherently trickier than top 50 investing, it has tipped on its head the notion that a flight to safety of top 50 stocks is always the way to go in a bear market.

Let's look at a few stocks.

BHP Billiton (ASX:BHP) is part of the top 50 stock index as well as a part of the mining and metals index. It has risen 43 per cent since its low point. CBA Bank (ASX:CBA) has gained just 13 per cent, Westfied Group (ASX:WDC) is up just nine per cent and Telstra (ASX:TLS) has gained 13 per cent.

Against that, in the mining and metals arena, Atlas Iron (ASX:AGO) has rocketed 237 per cent, ERA (ASX:ERA) has risen 108 per cent and Mirabela Nickel (ASX:MBN) jumped 151 per cent since the market lows. If stock selection is off in the mining and metals sector an investor will pay. Oz Minerals (ASX:OZL) is currently suspended pending refinancing negotations.

On the whole, having an exposure to the mining and metals sector and buying at the "right" time can be a profitable strategy.

The moral - stockpicking can pay. Timing and price paid are everything.

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