Forget what analyst are saying, price of iron ore has reversed!!
The post at the bottom is correct!!! The price of iron ore is now at roughly 145/metric ton. This is the same price iron ore was during May of last year, when the price of CLF was between 45-55.
BUY BUY BUY.
Great chance this will go back to 45-55. There will be a SURPRISE crush of the coming earnings estimate, which will explode CLF to last year's high!!!
I'm buying, screw what analyst are saying and go with guidance. Analyst are ALWAYS WRONG WHEN IT COMES TO COMMODITY PLAY....They are analytical people and look at historical returns to project future earnings growth...They can't forecast #$%$!!
That makes a lot of sense dualback. But you have to remember, this is a cyclical stock, and iron ore is a cyclical commodity where companies will always need to replenish their supply of steel every now and then, and because China's supply of steel is almost used up, they need to restock up on some more. Demand will push the price of iron ore temporary for the coming year. When Demand pushes iron ore prices to a "top", then that would be the best time to sell the stock and wait for the next cycle of demand for iron ore.
Even if they don't do a good job in Feb. 2013 earnings estimate, when they announce guidance for the second quarter earnings, guidance will be raised. I'm referring to the earnings report after Feb. 2013.