Just a Cyclical Stock

I'm new to this site but nonetheless I've been closely monitoring the share price and valuation of MGX.

Yes the stock is undervalued and is fair to say is there any stock out there that is correctly valued whether it is overvalued or undervalued. I suppose the appetite is not there for the mining stocks many investors have had their shirts taken off during the course of the mining downturn. Some investors obviously have long memories.

Being a cyclical stock it just needs time - the stock will outperform one day I'm sure we can see this stock between the $1.50 to $ 2.50 when demand for iron ore is assured. Thus, I don't agree in management being the issue I think they are being prudent with their cash holdings. Once the opportunity arises whether it is and acquisition of another company, divest from iron ore into other commodities we wont know however one must realise that the day to day management activities surely have their finger on the pulse waiting for the right investment opportunity.

The question we should have for discussion is how long do cyclical stocks continue to perform below non cyclical stocks.

This I believe gives us a better indicator for the next upturn in the market especially for mining stocks.

Goods news though that the mining sector is starting to employ again - is this a sign for the next upturn in this sector.