Academic studies show that up to 80% of stock returns are dependent on the performance of the sector and only 20% of the return is a result of a company's specific performance. What exactly does this mean? Well, simply put, which stock you buy may not really matter - all that counts is your stock's sector.

This was apparent six years ago during the tech bubble when almost every technology company's stock rocketed, whether or not the organization was viable. People who had invested in oil and gas companies were crying the blues because their stocks rang well. At the time, the market didn't care about oil and gas or fundamentals; it only recognized the booming tech market. After the tech crash, though, all tech companies fell, even if they had good fundamentals.

During the past couple of years, the oil and gas industry has experienced a sector timing phenomenon. Nearly all oil and gas stocks have done exceedingly well, aided by strong supply-demand fundatmentals while the rest of the market has taken a back seat.

Now it's the mining sector's turn to rise. With gold well over $500 per ounce, and a strong international demand for resources, mining companies are on fire. Almost every stock on the TSX Venture's most active list, based on volume and percentage gains, is a mining stock. The market is hungry for mining stocks, and many companies have moved from pennies to dollars in the last few months. Some of these companies have become market darlings with market caps that are surpassed only by blue chip companies.

It looks like the mining sector's momentum is going to remain for some time to come, so which mining stock a person invests in is less important than simply investing in the mining sector. The following companies have recently become mining companies and have not enjoyed the run-up so far, but they should be set to ride the wave of the mining sector going forward.

GENERAL PROPERTIES LTD. (GPL: TSX.V $0.09) is an Alberta-based company that once developed residential real estate, but has announced the sale of its properties to reinvest in the mining sector. The company has entered a letter of intent with CaNev Resources for the acquisition of 832 square miles of metallic mines and mineral permits north of Worsely, Alberta. Iron ore exploration has been done on the properties, showing the potential for up to 167,600,000 tonnes of iron ore reserves. The stock is currently halted pending shareholder and stock exchange approvals. With this change of business focus into the mining sector, the company has the potential to increase its speculative value.

STONECLIFFE CAPITAL INC. (SNT.P: TSX.V $0.25) is an Alberta-based capital pool corporation that has entered into a formal amalgamation agreement with Ruby Red Resources Inc. The stock is currently halted pending the completion of the qualifying transaction. Ruby Red holds 100% working interests in 135 mineral claims in good standing in various properties in the Fort Steele Mining Division of B.C., with gold and base metal potential. Ruby Red is currently completing a $500,000 financing at $0.25 per unit. With this financing and the completion of the qualifying transaction, the amalgamated company should be set to take advantage of the market.

HEARTWOOD CAPITAL CORPORATION (HWC.P: TSX.V $0.06) is an Alberta- based capital pool corporation that has announced an agreement to acquire an interest in the Majiahe gold exploration/mining property located in China. The stock is currently suspended pending the completion of this qualifying transaction. Prior to the completion of the transaction, the company intends to raise up to $2 million at $0.20 per unit. The entry into the mining sector at this time should bode well for the company's stock performance.