iron ore sector stock rotation

good to see some discussion on the merrits of the stock not hyped up price targets based on wild speculation.

there will be debate over what company has the most potential upside in the spec iron ore space, and not everyone will agree on which company that is, but one thing that is important to remember is rotation inside the sector money will flow between stocks as they move closer to upcoming news/exploration results.

take your pick UMC,TLM,YML,IRM,MDX,FDL,JMS,ROY,POL,CUL,HLX i'm sure I may have missed a few but that is for starters.

Valuation/Momentum/Upcoming News plays a big part of individual share price movements the following have had recent news and have come off the boil a bit UMC,TLM,YML,CUL,HLX not to say they won't start again the money is just flowing elsewhere at the moment.

ROY,POL both in the middle rung with not huge amount of volume going through needs news to spark them again.


a closer look at where the money is flowing at the moment

FDL - not doubt the surprise packet, was a good buy around the 5c level but very dangerous for those that bought between 11-15c maybe a while before it gets back to that level at the moment.

IRM - has a history of running on news and with results due shortly may run again on any good results. Was a great buy at 15-25c dangerous above the 50c level.

MDX - has recently completed share placement which may effect shareprice in the short term, holds substantial ground around the IRM tennements may move based on nearology, was a good buy around and below 13c, dangerous around the 20c level.

JMS - don't think that the recent SP movement is a reaction to speculation about Brockman it is more related to the ousting of the previous rubbish management, as Brockman is not even ascribed a value in the current shareprice. With around 4-5 weeks until results expect churning for another couple of weeks before the real speculation starts. Good buying around the 29-32c but dangerous short term above the 35c level, but would expect it to be closer to 40c come christmas time in anticipation of Brockman.


I'm sure lots of you would have different opinions on the merrits of each company but for me having traded in and out of every one of the above over the last 12 months the best in terms of risk/reward at the moment is JMS, that doesn't mean I won't trade in and out of the rest it just means valuation wise JMS is the best at the moment.

But that could change very quickly volume is a good indication something is up keep an eye on all of them there is plenty of money to be made.