The best of the iron ore stocks

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Brokers are often thought to be a bit optimistic because they rarely have a 'sell' on a stock. So, in my opinion, if the collective wisdom - or consensus view - of brokers is weak for a particular company, there is little point in investing in it. That does not mean any good consensus view will turn out to be good - but it does mean that the brokers are not aware of any problems with the company or its market.

Iron ore options

Investors can access Reuter's broker survey results here, and then type in a stock code, then click the appropriate stock name, and then the 'analysts' tab. The table on that site looked like that below for each of four iron ore stocks (RIO is slightly diversified outside of iron ore) (I repeated the exercise four times and displayed the data differently to aid comparison).

Table 1: Reuter's survey results of broker forecasts for four stocks on 7th April 2014

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