FMG - Fortescue Ltd

[Value Collector]

I suspect they will be cutting their dividend tomorrow,given the one off costs and lower prices per WMT and higher AU$ relative to spot prices.
May disappoint quite a few optimists hoping for a yield feed on a rough day.

Maybe, But they don't need to, I reckon they will match the 20cents of the prior corresponding period.

But the announcement isn't tomorrow is it? 21st of Feb I thought.

 

[notting]

Someone said they were announcing something tomorrow. So you may be right.

 

[Value Collector]

Someone said they were announcing something tomorrow. So you may be right.

half yearly report is out on the 21st, This is where the dividend will probably be announced.

http://www.fmgl.com.au/investors/key-dates

 

[notting]

FMG plats going nowhere.
Div reduced
Profit down 58% despite lower Au$
Not great.

 

[fiftyeight]

When I was looking at FMG previously I was surprised how little impact the $AUD had on FMG.

Debt in $USD so I was thinking they are hedging accordingly to protect themselves???

(Had a quick look for a reference but I can’t it find at the moment)

 

[Garpal Gumnut]

How come most Financial Analists have FMG as a BUY when it's making less money than last year and going down the crapper on the charts.

 

[noirua]

View attachment 89259

How come most Financial Analists have FMG as a BUY when it's making less money than last year and going down the crapper on the charts.

The lower value of the AU$ against the US$ should be quite dramatic on margins in the tough iron ore sector. Eliwana is their key mine with 60% grade and 170mtpa and as a low cost mine it should advance profits with a lower Aussie.
During the year, Fortescue continued to undertake early stage, low cost exploration on copper-gold prospective tenements in South Australia and New South Wales. This comment has been picked up on and the number of cases in the Wardens Courts after tenements.
Fortescue has needed to diversify and is taking this more seriously.

Debt has been paid down steadily since US$13 billion in 2013.
https://thewest.com.au/business/min...ets-on-top-of-its-debt-mountain-ng-b88762140z

The 62% Fe price has been fairly steady this year.
https://www.marketindex.com.au/iron-ore

 

[Garpal Gumnut]

Come back down FMG and then up thro $4 convincingly and I'm in again. A new high off the bottom, (done), the a new higher low, then a higher high.

Simples.

gg

 

[Garpal Gumnut]

FMG seems to be falling more like the Liberal Party than a stock with a parachute today. And it has gapped thus far.

We may see a new low in this recent trend soon or as I predicted above a halt before climbing higher. Twiggy's wallet covering must be more open than the ideological gap between SHY and Sen. David Ean Leyonhjelm.

A chart.

 

[Garpal Gumnut]

FMG continues to fall with quite exquisite lows on medium volume.

I'm inclined to look for an entry quite soon.

The action is all very vanilla.

gg

Change:

-0.16 Open:3.76
High:3.77
Low:3.60
Volume: 14,638,710
Percent Change: -4.24%
Yield: 6.65%
P/E Ratio: 9.9614
52 Week Range: 3.515 to 5.46

 

[noirua]

FMG continues to fall with quite exquisite lows on medium volume.

I'm inclined to look for an entry quite soon.

The action is all very vanilla.

gg

Change:

-0.16 Open:3.76
High:3.77
Low:3.60
Volume: 14,638,710
Percent Change: -4.24%
Yield: 6.65%
P/E Ratio: 9.9614
52 Week Range: 3.515 to 5.46

View attachment 89657

Vale seem to be doing very well but FMG is moving against the trend.
https://www.msn.com/en-us/money/top...-giant-rose-11percent-in-september/ar-BBNSDxi May be just an Aussie thing going on. JMS are on a yield of 22% to 32% with manganese prices rising - demand for the shares abroad is low due to the weakening Aussie.
On another company OMH once at a price not long ago of 10c and around $1.65 less than two years later. People were screaming how cheap the shares were but the price kept descending. Basically the market is clueless at times. Now OMH are too expensive but the shares wont stop going up.

 

[Garpal Gumnut]

Well good ole FMG have bounced up over the last few days.

They are still shy of $4.00 though by only 4 or 5c.

Perhaps a trading range or a breakout as I suggested above.

One to keep a close eye.

gg

 

[fiftyeight]

Bought a large size (for me) in my super.

Not overly concerned with the price action, but China is a worry. My thoughts are that it won't be as bad as the doomsdayers think and if it is there will always be the next "China"

 

[Garpal Gumnut]

Bought a large size (for me) in my super.

Not overly concerned with the price action, but China is a worry. My thoughts are that it won't be as bad as the doomsdayers think and if it is there will always be the next "China"

I'll be in like Flynn if it cracks up through $4 on high volume.

It may be a good buy for you 58, if not, not a bad one.

gg

 

[notting]

Bought a large size (for me) in my super.

Not overly concerned with the price action, but China is a worry. My thoughts are that it won't be as bad as the doomsdayers think and if it is there will always be the next "China"

I don't think China is a worry from a short term resources point of view. Their likely to just keep building infrastructure for stimulus.

 

[Garpal Gumnut]

Is in a trading range.

http://bigcharts.marketwatch.com/ka...1&lf2=2&lf3=0&height=444&width=579&mocktick=1

 

[Garpal Gumnut]

For those of you not involved in General Chat I reckon Monday may be a good day to enter FMG if it speeds through $4.00 on good volume.

gg

 

[Parse]

Question. Does this mean you are of the opinion that if it doesn't go through $4 in the very near future it's going to be range bound $3.50-$4.00 for quite sometime?

 

[Garpal Gumnut]

Question. Does this mean you are of the opinion that if it doesn't go through $4 in the very near future it's going to be range bound $3.50-$4.00 for quite sometime?

Yes

So I'll buy at 3.55 and sell at 3.95 and then re-enter at 4.20 or 4.30 only if it had high volume.

 

[Ann]

I have put a fibbo level over the chart and it appears to be riding the correct line. There is a falling overhead resistance coming early September '17 which may slowly press it out of its range. That falling overhead may be something to watch. There is also another overhead resistance at around 4.30. The current support line is around 3.60.