FMG - Fortescue Ltd

[basilio]

SP taking a beating in the last few days. Current price is now $16.53. Interesting comparison to the announcement that dividend re investment price will be $17.83. Iron Ore price is still very high

Previously there has been a sharp rebound when the SP has dipped.

 

[over9k]

The P/E is still great though.

But a lot of stuff has been smashed since the "tech wreck" that started on iirc the 2nd?

 

[aus_trader]

The P/E is still great though.

But a lot of stuff has been smashed since the "tech wreck" that started on iirc the 2nd?

You are calling this one early mate, I wish you could warn us about the Tech Wreck back in Y2K

 

[Chronos-Plutus]

I like FMG and think it is a really well run company. I get a bit nervous, though, when a company moves too far away from what it does best.

It will be interesting to see how this plays out.

The FMG pivot to the alternative energy space was surprising. Particularly hydrogen of all energy fuels; although hydrogen is easy to produce.

 

[basilio]

Still falling. Currently $16.20. Be interesting to see if the end of day brings out bargain hunters who believe it has bottomed.

Also wonder if some bigger traders have decided to take their profits from 2020 off the table.

 

[Value Collector]

Still falling. Currently $16.20. Be interesting to see if the end of day brings out bargain hunters who believe it has bottomed.

Also wonder if some bigger traders have decided to take their profits from 2020 off the table.

Just fluctuations IMO, its normal for the market to panic every now and then, times like this is best to re-read chapter 8 of Ben Grahams intelligent investor, and sharpen your pencils.

 

[basilio]

Twiggy has been a major onmarket buyer in the last 3 days.
Picked up 6m shares (out of 29m sales) for $97m.
Interesting to note that if FMG holds its payouts for the next 12 months he will net an extra $10m dividends

Current shareholding by Twiggy is now 1,122,165,000 shares.

 

[basilio]

Pre Market prices for FMG have jumped 3% after Twiggy announcement of a 6m share buy in the last 3 days.

(Wonder if he will sell into the rush ?)

 

[over9k]

So in other words, he's buying the dip.

 

[joeno]

Hey guys one question about taxes and franking credits. I've been holding a bunch of FMG shares since 2015 in my InteractiveBrokers account. I've never declared it on my tax forms (it's automatic for shares in my commsec account but not showing for IB) so i haven't paid taxes or received franking credits. Is there any penalty in me leaving it all alone and doing it years in the future?

Also my residency situation has changed and I live overseas now. So I'm thinking about claiming the dividend as income in my new country.

 

[Value Collector]

Hey guys one question about taxes and franking credits. I've been holding a bunch of FMG shares since 2015 in my InteractiveBrokers account. I've never declared it on my tax forms (it's automatic for shares in my commsec account but not showing for IB) so i haven't paid taxes or received franking credits. Is there any penalty in me leaving it all alone and doing it years in the future?

Also my residency situation has changed and I live overseas now. So I'm thinking about claiming the dividend as income in my new country.

I would definitely speak to my accountant about that and try and get it cleared up.

if it turns out that the Ato owes you money, there won’t be any penalty.

Also, if the amounts involved are small and it’s a genuine mistake there probably won’t be a penalty either.

one issue with claiming the dividend income over seas is that you won’t get the benefit of franking credits.

eg. A $1 dividend will probably be fully taxable overseas, where as if you are paying tax here you get the franking credit.

 

[basilio]

I noticed that FMG has extended a committment to buying back its shares (up to $500m). They must believe the current best value for spare FMG dollars is their own shares .

 

[over9k]

Encouraging sign.

 

[joeno]

I noticed that FMG has extended a committment to buying back its shares (up to $500m). They must believe the current best value for spare FMG dollars is their own shares .

That's a great sign.

 

[Value Collector]

That's a great sign.

We just need them to actually start buying some shares, they have had the Buy Back approved for. a long while, but have been very gun shy about actually pulling the trigger and buying some some stock.

 

[over9k]

Because it'll trigger a run when they do.

They're not idiots.

 

[Trav.]

FMG released their Quarterly Production Report and the highlights look good, and with IO price sitting at high levels FMG are in a pretty strong position

holding


from Market Index

 

[basilio]

FMG released their Quarterly Production Report and the highlights look good, and with IO price sitting at high levels FMG are in a pretty strong position

holding


from Market Index
View attachment 113929

View attachment 113928

It certainly was a good result. Market responded accordingly today.
"People" are saying its only a matter of time before Iron Ore prices and exports to China fall dramatically. Maybe - maybe not.

But there is certainly some hefty margins in FMGs figures little debt and some useful further cost savings in the future with their renewable energy projects coming online.

 

[Value Collector]

It certainly was a good result. Market responded accordingly today.
"People" are saying its only a matter of time before Iron Ore prices and exports to China fall dramatically. Maybe - maybe not.

But there is certainly some hefty margins in FMGs figures little debt and some useful further cost savings in the future with their renewable energy projects coming online.

Yep, basically they have been printing money for the last 3 months at current Iron ore prices, the return on their invested capital is currently over 60%, I don't those return can last, but its great while it does.

 

[Trav.]

One thing I found interesting is that the announcement (Quarterly) came out early in the day and there was plenty of time to read / review and buy if happy.

But instead of buying FMG was down -2.9% yesterday

Then obviously a green today +4%.

Maybe people were unsure about the US Markets (that includes me) and they had a good night so maybe that was the trigger?

FMG share price and company information for ASX:FMG

View today’s FMG share price, options, bonds, hybrids and warrants. View announcements, advanced pricing charts, trading status, fundamentals, dividend information, peer analysis and key company information.

www2.asx.com.au