Q: Lif is trading near 1yr low.So far been paying a decent Div on average.China is weak so likely have a negative impact on price of Iron Ore and by extension price of Lif. Is it timely to buy Lif and what is a good entry [price. Please comment.Txs for u usual great advices & services
5i Research Answer:
We think the issues noted are largely reflected in the low valuation of LIF. The dividend varies with earnings, and we would be prepared for a lower dividend (again) until commodity prices stabilize. But we would be OK slowly buying for income investors who have some patience.