In general, I think a lot of people believe that commodity stocks have topped out.
Then to make matters worse, Deutsche Bank just downgraded U.S. steel and MSB has dropped its dividend.
From about June to November of last year the dollar fell quite a bit, but now it appears to have leveled out and that works against commodities.
I didn't own a lot of MSB and I just sold what I had. I do own some SDRL (oil driller) and DBA (agriculture) and they are both up today. AGQ (silver) is up today also, but I don't feel very enthusiastic about silver or gold right now.
You should take note that Mesabi did NOT cut its dividend..this is proof that the majority of people believe it did cut the divvy courtesy of this forbes article (which is incorrect). Look at the seasonality of the dividends!!! excellent buying opportunity here!!
Are institutions upset at the Divi announced?
Results of Operations and Financial Condition, Financial Statements and Exhibits
Item 2.02 Results of Operations and Financial Condition.
On the evening of January 14, 2011, Mesabi Trust issued a press release announcing a cash distribution of $0.65 per Unit of Beneficial Interest of Mesabi Trust. The distribution is payable on February 20, 2011 to Mesabi Trust Unitholders of record at the close of business on January 30, 2011. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
99.1 Press release, dated January 14, 2011.
In accordance with general instruction B.2 to Form 8-K, the information in this Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section.
Forbs put out a report that the dividend was cut, LOL. A complete ignorance about the seasonality of this business. In actuality, the declared $.65 for the January payment is a record high. This could be some market manipulation on their part to get their shorts out. We are close to my previous buy point but I bought already on the previous decline.
Looks like a concerted short attack. MSB is up about 15% over the past 7 days, and with the overall market weakness today, I imagine some of the big shorts got together and realized they could send the share price into a freefall and not face too many new buyers to support the share price.