Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

If There's Any Life Left In Iron, Fortescue Ought To Do Well

Is the commodity supercycle dead, or just sleeping? That's more than just a rhetorical question when it comes to Australia's Fortescue Metals Group (OTCQX:FSUGY).

On one hand, it seems hard to believe that China will re-accelerate its infrastructure and capital spending programs to such a degree as to bring back the commodity glory days of just a few years ago, not to mention there's a lot more supply online now to deal with it. On the other hand, Chinese steel mills still source a lot of their iron ore needs from high-cost domestic mines that simply cannot compete with Brazilian and Australian imports.

In the case of Fortescue, I believe there are multiple factors that should drive a...

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