re: News: Generating returns without market r... I've looked at...

re: News: Generating returns without market r... I've looked at the company's haulage costs and comparable to BCI, FMG and so forth there's really not much of a difference so i wouldn't place too great an emphasis on getting a rail link - the company is able to truck the ore to port at a reasonable price anyway! With regard to the free cash flow he talks about, why doesn't he take a look at most other resources companies? These companies need huge amounts of capex to run, in other words they need to spend a lot of money to make money, so you would typically expect that they would have very little free cash flow, especially when they're in an expansion phase and increasing production!

Furthermore, i'm not sure what he means when he talks of the company "receiving downgrades". Looking on Commsec right now AGO is listed as outperform, definitely not a stock to be shorting IMO. The only merits you would have in shorting this stock is the fact that the market is bearish on iron ore and expects it to fall in the medium to long term, but that's about all. In the short-term the stock price might fall, but i'm not flipping stocks around every hour so that doesn't really bother me - in the end, earnings always wins out!