I think maybe some people are a bit deluded about what a share...

I think maybe some people are a bit deluded about what a share price really signifies. Share prices are a representation of what you think the company will be valued in 9-12 months. Along with this comes the sentiment towards its sector ( materials ) and in this case iron ore.

A majority of analysts believe that iron ore will come down to around 100 dollars a ton in 2014 and concurrently the materials sector hasnt been participating in the rally. So for now yes the price is good and earnings look bonanza for the SP but the growth outlook from "thier" point of view is very marginal.

Personally I dont believe that the iron ore price will drop that far or stay there for any extended period. I believe that a lot of analysts are influenced by what America touts, and America is so conceited and arrogant that they are down ramping china's growth story so that they will remain the super-power economy in the world. The simple fact is that it is forecast that the chinese economy will overtake the Americans in 2016.

Just my 2 cents but maybe it provides a little more clarity on why MGX SP is getting smashed. An excellent opportunity for a turn around play indeed, but not just yet. Once the XJO bounces off 4800-4900 region in the near term i believe Materials will start to participate as there is a lot of value in the sector still and not much elsewhere.

Just my opinion so dont take it as advice!