Labrador Iron Ore Royalty (LIF.TO)

(Top Pick May 23/14, Down 38.13%) Iron ore prices went lower than anyone anticipated this year. We have seen the bottom now. The majority of its dividend is supported by royalty. The dividend is sustainable. 5.9%.

Because he is not a direct investor in resources, he asks that you take his comments with a grain of salt. Rio Tinto (RIO-N) is thinking about putting Labrador Iron Ore up for sale, as a consequence you might actually get a better lift on this royalty. He would be a little bit nervous about the dividends because the steel industry and steel suppliers are having a pretty rough time.

Actually doesn’t own anything. It has a royalty on iron ore produced and sold by the Iron Ore Company of Canada. Iron ore prices have been under siege and volumes have not been as good as they could be. This has a nice 8.5% dividend yield and eventually will come back. The Company has recently sent out a proxy wanting to change the status of the company. He would suggest that you vote against that.

Times are hard and probably going to get worse. Chinese just won’t pay for iron ore and there is lots of it. Australians are producing it in huge quantities. Also, feels the 8.5% dividend is in jeopardy.

Iron ore prices have been at 5-year lows lately. They have been getting hit. Very much tied to Chinese GDP outlook, more than a lot of things. Chinese are trying to stimulate, which shows you how soft things really are. If this stays here for any length of time, they’ll probably have to cut the dividend. Yield of 6%.

Iron ore has been wallowing in 5 year lows. Iron is used for steel and, like almost every other commodity; China is the largest buyer of steel. When the Chinese economy is not doing as well as it was, steel prices dropped but iron ore prices dropped even more. Coal sector is suffering badly. There is a good chance that China's economy slows down even more.

There isn't much of a catalyst for this name and for iron ore prices specifically. The reality is that China is growing less strongly than it was before. Growth was in the 7.5% range. Ultimately, they are trying to increase consumption, and consumption spending is part of the economy. It is going to be a long haul. Thinks this will be years. If you have another investment that looks better, consider lightening up.

As China slows they won’t have to construct everything. They will still need iron and steel, but not in the same quantity. Competitors in the industry will drive prices down. It would be a great long term investment if Iron Ore bottoms out.

A wonderful business model. It doesn`t matter what the price is. China iron ore prices are hitting lows.

Iron ore is a fungible product. One shipment is the same as another. If the price of iron ore is going down globally, as it is, it is not a pretty picture. With the demand for steel, particularly in China, affecting the price of iron ore, it is a tough time to be in this business. It is a good mine and a good ore body and they can produce as long as the price doesn’t fall too far.

Has been hitting new lows. Its high was back in 2011 at $40. He has a model price of $46.05. China is slowing down quite markedly. Thinks our material stocks are really picking up that slow down. This is at a crucial level in his programs (EBV +4) at $25.40. If there is a negative transit of that, this is a shoo-in to go to level EBV +3, his red line of $20.30, so there is downside risk.

Has been under a lot of pressure because of a weak outlook on iron ore. Although she doesn’t expect great things out of the iron ore market, this company has a number of factors that can offset the weaker iron ore pricing environment. This is a royalty company so you are basically getting a 7% top line royalty and not taking on a lot of the operating risks. Yield of 3.53%.

A conservative way to play the resource space. Essentially, their business is run by Rio Tinto (RIO-T) and the Iron Ore Company of Canada. Gives you a decent yield. Good, long-term holding.

(Market Call Minute.) Commodity group has been very, very weak. However, this one is a beneficiary of royalties and production for the Labrador iron ore Company of Canada.

(Top Pick Feb28/12, Down 0.38%) He bought in the dip. Still really likes it and it has a nice yield so he is getting paid to wait. If Asia continues to go they will need all the Iron Ore they can get.