Sector Bests: Materials

In Sector Bests I will present the top 5 companies in various industries according to their ability to maintain and enhance their economic value. I’m starting here with the materials sector. No attempt has been made to refer to P/E, P/S or the like, because, given a long-enough holding period, such distinctions are likely to become less significant.

CVVT

China Valves Technology, Inc. is engaged in the development, manufacture, and sale of metal valves. CVVT manufactures and sells over 800 models with more than 10,000 specifications of low, medium and high-pressure valves. The Company sells its products to customers in the electricity, petroleum, chemical, water, gas and metal industries throughout China. Return on Equity = 31.79.

BVN

Compania de Minas Buenaventura S.A.A. is a precious metals company engaged in the exploration, mining and processing of gold, silver and other metals in Peru. Return on Equity = 30.09.

NEU

NewMarket Corporation is a holding company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). The Company has two primary segments: petroleum additives and real estate development. Return on Equity = 39.05.

PKX

POSCO is an integrated steel producer in Korea. POSCO operates in four segments: steel, engineering and construction, trading, and others. The steel segment includes production of steel products and sale of such products. The engineering and construction segment includes planning, designing and construction of industrial plants, civil engineering projects and commercial and residential buildings. The trading segment consists of exporting and importing a range of steel products. The others segment includes power generation, liquefied natural gas production, logistics and magnesium coil and sheet production. Return on Equity = 23.07.

SVM

Silvercorp Metals Inc. is a silver producing company. During the fiscal year ended March 31, 2010, Silvercorp mined 406,754 tons of ore. In fiscal 2010, the Company produced and sold 4.6 million ounces of silver, 62.4 million pounds of lead and 14.7 million pounds of zinc. The Company’s properties include Ying Mine (77.5%), HPG Property (80%), TLP Mine (77.5%), LM Mine (80%), Nabao Project (82%), GC Project (95%) and Silvertip Project (100%). The GC Project is a pre-development stage silver-lead-zinc project in Guangdong Province, China. In February 2010, the Company completed the acquisition of a 100% interest in the Silvertip silver-lead-zinc project covering 216 square kilometers in northern British Columbia, Canada. Return on Equity = 23.26.