nightmare on collins street, page-4

There will have to be cuts in iron and coal prices soon. Customers cant go on paying boom prices in a big slump. news today says cuts of 40 to 50% being sought by export buyers. Woh....so expect BSL woulsd be along for the ride?

STRATEGY
When they do come down if I was the CEO Id be looking around to vertically integrate and re-establish my own mines to control costs. There are some potential buys about at bargain prices, for ore deposits at least. They should have a chat with GIR, who has a lot of new iron here and there, or etc. There are some smaller deposits that could be mined out in four or five years that are high grade and close to rail, while they develop something bigger.

PROFIT OUTLOOK
Cyclical industry. Investors will do best buying the big dips. This is one. Like the div cut-conserve cash. Ride it out. Poor retirees. Better leave the car in the garage and catch the bus to Centrelink now. Or go feral.