Two parts of the article are clueless & detract from the rest of it IMHO but pls DYOR. 1) Prolonged NYE celebrations in China may have some general IOP impact but far less material impact compared to other dates. The post Chinese New Year period after Feb 19 this year, a.k.a CNY, is more important to China & Chinese economy than the Gregorian Calendar's NY. Many Chinese are superstitious & the Year of the Sheep is a time where investments are predicted to not go so well. If that is initially the case, President Xi Jinping will go for a Chinese stimulus package sometime after CNY when property prices in Shanghai/HK have crashed through the floor. Anyone that knows how metals are traded on the LME or is around minerals/ metals with a Chinese consumer downstream also knows only inventory stockpiles & counts happen over NY but Chinese demand only starts trending end of Q1 i.e. CNY. NY is a factor but not the major determinant for IOP from a Chinese economy POV, post Feb 19 is worth watching for the stimulus package from President Xi, then sentiment will kick into that little IOP going up but please DYOR. In reality, if you were going to buy MGX based on article above, you have a couple of months to consider MGX on the basis of the contents in the article i.e. IOP trends, debt ratios of majors vs mid-tier producers, asset writedowns etc IMHO but pls DYOR.
2) The article also has some unfortunate nationalistic overtones (i.e. "unAustralian to not have iron ore exposure (in p'folio)"). More suited to Melbourne of 1855 post Bendigo to Melbourne based articles of 2day. Even, the home of Mt Gibson, WA would have pro-secession media/ABC sporting commentators like George Grljusich ridiculing any journo from the "Eastern States", based in Melbourne, who quoted Australian/nationalistic overtones as a reason for deciding on something as serious as stockpicking for ur hardearned. Would poor George be rolling in his grave if he ever heard something more ridiculous even to support the SP of MGX, a popular mid-cap WA producer of Fe?
FMG Price at posting:
$2.83 Sentiment: Sell Disclosure: Not Held
BCI Price at posting:
62.0¢ Sentiment: Hold Disclosure: Not Held
MGX Price at posting:
28.0¢ Sentiment: Hold Disclosure: Not Held
ARI Price at posting:
23.0¢ Sentiment: Hold Disclosure: Not Held
AGO Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
