Stock price when the opinion was issued
It is in an uptrend and now consolidating. The support level has become the resistance level. It is going sideways so swing traders could trade the swing which is the only way for a stock going sideways. He likes swing trading. Pays a high dividend and there is a reason for a stock having a high dividend.
They have a huge operation in eastern Canada. They have a royalty structure, like a toll road on iron production. With a slowdown in China, how much demand will there be for metals? He's not sure. Be careful. LIF is volatile, but long-term this is good and pays a gooD dividend. You can buy a partial position and average in.
They get a royalty on what's delivered so are tied to iron ore prices. Their dividend is tied to earnings and they just cut the dividend from $1.10 to $0.70 for a yield of 10%. It is an interesting stock because of the valuation - 10X Earnings, cash - $40 million, and exposure, but they need iron ore to get back on track and China to grow again.
He'd consider owning. People are on the sidelines because iron ore is used to make steel, and tariffs have been slapped on. Tremendous compounder over 2 decades; high teens total shareholder return, mostly from dividends. Dividend is highly variable, though reliable, current yield is ~6.7%. To get a sense of the actual dividend, take a 10-year average, which puts it close to an 8% yield over time.
At 3x book value, trading below 5-year average of 3.4x. Long-life assets, tons of reserves, producing below capacity.