- What is your outlook for BCI as the takeover of IOH is proceeding? Do you think BCI is able to survive in the event the Iron Ore price collapses further to $70.00 as some analysts are now predicting?
- Should I sell all or part of my shareholding now and cut my losses?
On the other hand, the current low price represents an even better buying opportunity and I am thinking of increasing my position to average down my losses and average purchase price, and recover in an anticipated rebound.
- Do you think this would be a wise strategy?
- Charlie was forecasting a recovery in the share price to $5.30 near term. Due you still see this occurring?
- How long do you foresee the Spot Iron Ore price remaining at these levels?
A: I think you know more about BC Iron than I do, so I am loathe to offer any advice.
My sense is that the spot ore price has further to fall, or at least will stay depressed for some time, as the major producers seem intent on flooding the market.
There is an old adage in markets – your first loss is your best loss – so with your sizeable position, I am not in the “average down” camp.
