As previously written, MSB is still a compelling investment in these hard times. The Fed has cut rates to a pathetic 1% and there is future evidence in the fed fund rate futures of a further cut. Barron's indicated this weekend that MSB is yielding 21% and if you look at past insider buys you will see that in the last two weeks there have been been buys at these levels. Mesabi just paid out $1.25 and has been increasing its distribution each quarter at a fast clip.
October 16 - $1.25 vs .48
July 18 - $1 vs .31
April 11 - .12 vs .045
January 11 - 515 vs .315
If you looks at CLF (whom is a very large buyer of Mesabi's Iron Ore) and plot it against MSB over the past 4 months you will see how these distributions are a form of protection against the aggressive market sell off. MSB is still up over 32% against CLF which goes to show how yield rich investment don't necessarily mean that the company is a higher risk investment. In an environment of negative real interest rates id put my cash in such an investment any day over a 1 - 2% gov't bond.
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