He looks at this as a mutual fund of large cap commodities. You could draw many analogies of the iron ore segment relative to the oversupply in the oil market. As it starts to normalize, you will see some upside. The ultimate upside for this company is that we are going to see highly reserved production trying to come back on line. Longer-term, if you are going to take a view and are prepared to have the cyclicality, this is something you might want to put in your portfolio and just put it away. Balance sheet is not bad. He likes it. As a 4-5 year hold, it is a Buy here.

It is US listed.  The commodity complex has been a tough one.  It is driven by tepid world growth and inflation which we have not seen.  There has been a bit of a rebound play over the last few months.  Bottom fishers picked these things up for a trade.  BHP-N does reasonably well, without a debt burden, but for now he would pass.

A very large mining company. It bounced off the low and there was a huge run on these commodity products. Not sure that you want to buy it at these levels. If you feel strongly about commodities, he would wait for a pullback. Feels very uncomfortable owning iron ore, when looking at the dynamics of China.

For a 2-3 year hold? Was one of the best mega mining companies globally, however made some missteps, particularly going into oil. Global miners have been under tremendous pressure for some time. Doesn’t think that is going to change. With a dividend of 10% plus, you are almost assured of a dividend cut. However, if you are willing to live with half of that, which is reasonable, you will be okay. In the short run it will go lower rather than higher.

53 million tons closed year-to-date and will be over 60 by the end of the year. 80 million closed in China expected next year. None of that can be good for steel and that can’t be good for this company. They will survive, but this is not something he would invest in right now.

(Top Pick Sep 5/14, Down 47.57%)  He sold a while back.  It has big exposure to oil and iron ore, so his clients don’t own it any more.

This and Rio Tinto (RIO-N) are on his radar screen, in part potentially for some of his dividend oriented funds. Draws a lot of its revenue and EBITDA from iron ore. Many question the philosophy of the company, i.e. building more capacity in an oversupplied market, in an attempt to bring on more low cost supply, and driving out higher cost producers. This has been a huge overhang on iron ore. They are the dominant producers. Thinks the dividend is pretty safe and they can finance it for the next couple of years at current spot prices.