FMG - Fortescue Ltd

[notting]

FMG had a cracker of day yesterday to the surprise of all, even if the markets had not been melting down it was a cracker of a day.
Then IO rises 6% over night in China.

Someones playing something!!!

 

[notting]

FMG had a cracker of day yesterday to the surprise of all, even if the markets had not been melting down it was a cracker of a day.
Then IO rises 6% over night in China.

Someones playing something!!!

And yesterday China announces that the second half will require stimulus in order to meet the 6.6% growth target!!
If there was ever obvious front running this would be it!!!

 

[joeno]

Nice slow upward trend from Fortescue. Seems like consensus still is that Iron Ore demand will decline from next year. Any substance to these claims or just huff and puff?
http://www.afr.com/markets/commodit...o-shrink-as-old-economy-fades-20160703-gpxle2

 

[Value Collector]

, lets look back 12 months from now and decide whether it was worth holding

Well, its only been a little under 5 months, but holding has certainly paid off, the share price has nearly doubled.

FMG's quarterly production report looks great, it confirmed cost reduction is well and truly putting them close towards their low cost peers, debt reduction has been huge and profit margins continue to refill the bank balance.

every thing is going well

 

[notting]

Well, its only been a little under 5 months, but holding has certainly paid off, the share price has nearly doubled.

FMG's quarterly production report looks great, it confirmed cost reduction is well and truly putting them close towards their low cost peers, debt reduction has been huge and profit margins continue to refill the bank balance.

every thing is going well

Yes they have managed a very difficult situation brilliantly. How are you with this investment? Ahead yet?
IO seems to be going it alone in the commodity space. Seems like there is still enough demand in China even though some officials have declared a steel ice age!!

 

[Value Collector]

How are you with this investment? Ahead yet?
!!

Yes, well ahead now, and I have been banking loads of premiums on puts I was selling on these guys when they were sub $2.50 they have all been expiring worthless.

I still think there is loads of share price growth left, I am not saying things won't get volatile, bad as a long hold, the value being generated inside this company is great.

 

[Knobby22]

I only got on board two weeks ago. Too hard to ignore but missed the big rise so good on you value collector.
Still 12% return in two weeks is a nice. probably the best company in iron to be in if you have faith that the world is turning up (or at least this rise will continue a bit longer).

I have to admit I didn't realise just how efficiently they were going to get it out of the ground. Their costs are pretty good.

 

[qldfrog]

trusting my contrarian attitude, i bought some shorts in the last 2 days
->short term, current level is a bit optimistic in my opinion will see, I do not play the bank on it

 

[Value Collector]

trusting my contrarian attitude, i bought some shorts in the last 2 days
->short term, current level is a bit optimistic in my opinion will see, I do not play the bank on it

Be careful, this thing is going to $8 in the next 12 months

 

[qldfrog]

Be careful, this thing is going to $8 in the next 12 months

as long as we have a touch down to $4 before christmas, I will be right..as I said, did not play the house there..will see, I made a small profit shorting FMG in the last 3 months, trying to do the same

 

[Value Collector]

as long as we have a touch down to $4 before christmas, I will be right..as I said, did not play the house there..will see, I made a small profit shorting FMG in the last 3 months, trying to do the same

you may be right, but I think playing that game at this stage is like picking up pennies in front of a steamroller, as they say.

 

[Value Collector]

, bad as a long hold, the value being generated inside this company is great.

I just realised I wrote "Bad" as a long hold, I meant to say "But" not bad,

-----------------------------------------------

Results will be announced on Monday, the dividend should be increased, things are looking pretty good for FMG.

A special thanks goes out to all the bears who have been buying my puts for the last 12 months, its been great thanks.

 

[Klogg]

A special thanks goes out to all the bears who have been buying my puts for the last 12 months, its been great thanks.

Well done. Can't say I had the knowledge, nor the testicular fortitude to be doing that.
Resources is pretty much out of bounds for me.

 

[peter2]

I have to say well done to you also ValueCollector.

I decided to pass on the many break-outs that have setup since the 3.00 level. Mainly due to my aversion to resources and iron ore in particular. The charts don't lie. The management team at FMG have done a great job and you ValueCollector believed in them all along. You deserve the profits and the accolades.

 

[Value Collector]

Well done. Can't say I had the knowledge, nor the testicular fortitude to be doing that.
Resources is pretty much out of bounds for me.

I have to say well done to you also ValueCollector.

I decided to pass on the many break-outs that have setup since the 3.00 level. Mainly due to my aversion to resources and iron ore in particular. The charts don't lie. The management team at FMG have done a great job and you ValueCollector believed in them all along. You deserve the profits and the accolades.

Cheers Guys

 

[joeno]

Yeah great call on FMG. Can't say the Iron Ore boom lately wasn't a big factor. But still great company pick.

 

[Porper]

Can't say the Iron Ore boom lately wasn't a big factor.

I'd hardly call Iron Ore as being in a boom. The rise in FMG has been mostly down to company specifics. Most other companies aligned to Iron Ore have fared much worse.

I too have sat and ignored FMG's resurgence as I was a non-believer. Just one of those things, at least the rally in the broader market has been much more widespread recently offering other opportunities.

 

[Value Collector]

Fortescue dividend up 4 fold.

A nice boost to the dividend, the dividend is now 20% higher than what it was prior to the fall in the iron ore price.

 

[Knobby22]

Fortescue dividend up 4 fold.

A nice boost to the dividend, the dividend is now 20% higher than what it was prior to the fall in the iron ore price.

I like how the debt is falling rapidly.

 

[Value Collector]

I like how the debt is falling rapidly.

Yeah, $2.7 Billion in free cash flow will do that, things are looking pretty good.

with prices of ore over $50, there will be plenty of free cash flow to keep the dividends and debt reduction flowing, and they have the most exploration land and the most efficient exploration team discovering new resources at a rate about 3 times higher than their mining rate, so plenty of future projects in the pipe when existing mines are depleted or if the market needs growth in supply in the future.