skc
Goldmember
- Joined
- 12 August 2008
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Probably more to do with what Jim Chanos said.
http://www.businessspectator.com.au...ument&src=idp&emcontent_asx_financial-markets
Chanos was well known for his call on Enron.
FMG seems to be hovering around 5.60. Weakness not helped by the high prospect that diesel rebates for miners will be going in the budget.
US Hedge fund manager and short seller Jim Chanos has singled out Fortescue Metals as an example of a ''value trap'' in the ''iron ore rush", according to a report by Fairfax Media.
I can see a big opportunity for gain at the current price,
Even factoring Higher production costs and a much lower iron price (say $100), Fmg could still easily maintain a profit margin of $20 a tonne.
This means that by june next year they will be earning at least $0.99 per share, and thats only if there is a sustained fall in the iron ore price.
Their current margin is over $50 per tonne, so they are cashflowing quite strongly, which is paying for a decent chunk of the expansion projects.
If they are able to maintain a margin of around $50 a tonne, by june next year they will be earning, $2.47 pershare,
Either way this looks like a great opportunity to me,
I got out today with a 5.8% profit, net.
I take smaller profits in this volatile environment.
gg
FMG has made 2.5% at this moment since my above post. I do regret not taking my own advice.
gg
So I got in at 4.40 early this month, down to 3.90 on last close
What do you guys think of this stock now? Looks like everyone is freaking out because of their high debt and lower iron ore prices.
Is everyone freaking out because of their high debt and lower iron ore prices, or is everyone adjusting their investment because of their high debt and lower iron ore prices?
So I got in at 4.40 early this month, down to 3.90 on last close
What do you guys think of this stock now? Looks like everyone is freaking out because of their high debt and lower iron ore prices.
Is everyone freaking out because of their high debt and lower iron ore prices, or is everyone adjusting their investment because of their high debt and lower iron ore prices?
Isn't FMG being shorted by a big U.S hegde fund?
Iron ore future crash over night to $80 ish level here we go interesting day for fmg
Iron ore future crash over night to $80 ish level here we go interesting day for fmg
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