Fortescue Metals (ASX:FMG) chairman Andrew Forrest has waded into the market where others fear to tread and acquired four million shares in the company he founded at a price of $2.75 a share.
The tidy $11 million worth of shares bought by Forrest correspond to a five year low as the iron ore price retreated again this week.
The purchase lifts Forrest's stake to 33.3% from 33.2%.
The iron ore price and ingredient in steel making hit a fresh low of $US70 a tonne this week, a five year low.
Forrest's increased stake comes at a time of dire forecasts for iron ore prices from brokers, analysts, investment banks and just about anyone else with an opinion. It may just signal the bottom.
It is certainly a call on further China urbanisation and continuing commodity demand over the medium to longer term.
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