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Mining For Gold

Actually the company I am adding mines for almost anything including oil. BHP Billiton covers the globe yet remains nearly undiscovered in the metals sector. I think investors don't know how to classify it.

Last Sunday I profiled some short term puts in anticipation of a decline in excessive optimism. Unfortunately the OII May $70 puts were too far out of the money and I had to switch to the May $75 puts as OII fell through that level. Those worked out well but the May $70 puts never made a material bounce. The June $70 puts on MDR worked out very well. The longs on GG and TIE also worked out and anyone following my suggestion should have done well.

Unfortunately I do not have any hot ones this weekend. Rather than try for a couple short term dip buys I would suggest PTR or BHP as solid long term plays.

Jim Brown

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BHP - $47.76 - BHP Billiton Limited

BHP Billiton Limited is a diversified resources group. The Company is an exporter of metallurgical coal for the steel industry; an exporter of energy coal; a producer of iron ore, copper, nickel metal, manganese ore, primary aluminium and manganese and chrome ferroalloys. It also has substantial interests in oil, gas, liquefied natural gas (LNG), diamonds, silver and titanium minerals. BHP Billiton operates in seven segments: Petroleum (oil, natural gas and LNG), Aluminium (aluminium and alumina), Base Metals (copper, silver, zinc and lead), Carbon Steel Materials (metallurgical coal, iron ore and manganese), Diamonds and Specialty Products (diamonds, titanium minerals and metals distribution), Energy Coal (energy coal) and Stainless Steel Materials (nickel metal, and chrome and nickel ferroalloys).

I probably should just take the entry but I am hoping to get once more dip on Monday.

Breakdown trigger $46.75
Buy 2008 $50 LEAP Call LPH-AJ currently $8.60

Breakout trigger $48.50
Buy 2008 $50 LEAP Call LPH-AJ currently $8.60

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