Top 5 Buys for a Comeback

Robert Hsu, June 09, 2009

In this Issue:

Featured Stock: Australian Miner

A major Australian mining company was in the news again and this time it's due to the recent rejection of a $19.5 billion dollar deal to sell itself to a leading Chinese metals company. The dramatic turn of events occurred after the mining group failed to come to agreement over revised terms on a convertible bond.

The company is now considering a joint venture with one of its rivals. The new deal will allow both companies to combine their iron ore assets. The company plans to raise $15.2 billion through a 21-40 rights offer, one of the largest issues ever, a victory for shareholders.

This Australian miner's businesses are focused on every stage of metal and mineral production. With mining and exploration activities mainly located in Australia and North America, the company produces aluminum, copper, coal, iron ore, uranium, gold, diamonds and industrial minerals.

While the company produces a variety of raw materials, the company has a leading role in the production of three key metals -- copper, iron ore and aluminum -- associated with the growth and urbanization of China and other developing countries.

I believe China's insatiable demand for natural resources and commodities will continue as the Chinese government continues to spend money on infrastructure projects. And this Australian miner is one of the major beneficiaries of this trend. Based on rising commodity prices and the company's strong growth potential, I think that this stocks a good bet right now. The stock's already up 22% since I recommended it four weeks ago! Learn more now.

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