Has the plunge in the iron ore price created value in iron ore stocks
Has the plunge in the iron ore price created value in iron ore stocks? The simple answer is no. The iron ore price has crashed 45% over the past ten months to a five-year low, with iron ore-exposed stocks such as Rio Tinto, BC Iron and Fortescue sold off sharply. But we don't think investors should be buying into these stocks for some time at least given the risks that remain. The only really investment grade stock in the resources space right now is BHP Billiton. Rio is probably more of a trade at some point, but we would need to see 'blood on the streets' before recommending investors buy Rio. Fortescue requires a bullish view on iron ore prices which, clearly, we don't have. View our report to see 3 reasons causing iron ore share price movement: (VIEW LINK)
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