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.
Likes materials, likes copper. Significant iron ore component (close to 60%), and iron ore hasn't been as strong. Asia is getting better, and China is strengthening. So that's positive. Long-term chart is very attractive. Trading below 200-week MA, he'd like to see it break out; if it can trade north of $65, thinks it would. Solid dividends and special dividends. Big cashflow. Might be just a bit early.
See his Top Picks.
A safer bet in minerals is RIO, which trades at 11.37x earnings. It mines not only copper, but also aluminum, diamonds, gold and particularly iron ore. Also attractive is its solid 6.59% dividend yield, far higher than Teck's 0.84%, for example. Rio is a favourite of Stockchaser Michael O'Reilly who likes the company's growing cash reserves, declining debt and 20% return on equity.