Stock price when the opinion was issued
If you believe that the iron price doesn't fall further, then a pretty decent buy here. For those who believe in his natural resource thesis over 5 years, you have to own it. Need to pay attention to the global economy, but especially the Chinese economy.
He's less concerned about 20% fluctuations in the stock price over time, and more concerned about long-term value and the sustainability of the dividend.
The company is engaged in new iron ore, copper, and lithium projects worldwide -- looking to increase capital spending 33% to $9.5 billion. It trades at 9x earnings, 1.7x book and supports a 19% ROE. It pays a solid dividend, backed by a payout ratio under 67% of cash flow. We recommend setting a stop-loss at $49, looking to achieve $82 -- upside potential of 38%. Yield 7.3%
(Analysts’ price target is $82.20)