iron ore back above $110

http://www.bloomberg.com/quote/MBIO62DA:IND

We just closed up 4.42% today at 110.17/T

Good to see a sharp rebound in price after an equally large decline. We are now significantly above the lows we saw not too long ago.

The continual increase in the Iron Ore price will see investor confidence return to ARI & should see the shorters begin to cover their positions & additional Long positions taken.

At these levels (PE under 3) we are being priced for a large capital raising or failure. With IO above $110 again, both scenarios now carry significantly less probability of occurrence.

Of course, FMG's Bankers supporting them through this latest episode will also bode well for confidence in not resorting to capital raisings...

I bought a long term position today after FMG's news and also waking up this morning to see IO prices up again to 105.75/T. (I needed personal confirmation that 100/T was going to hold due to my firm belief that with prices above 100/T the risk of a capital raising (my primary & largest fear with this one) is significantly reduced).

My 2 Cents.