FMG - Fortescue Ltd

[Sean K]

I wonder if ASIC are going to ask for some real justification for this claim? I think last FY FFI paid itself more in administration costs than operations. Any income?

 

[Value Collector]

The only problem I see with FMG is someone like Hu Flung Dung in a radar control tower on the Western side of the Taiwan Strait getting his p's and q's mixed up with the American cousins playing a Boxing Day Syd-Hob in the Strait and pulling a pin so's the Chinese cousins become warry, fling dung and FMG is collateral damage.

I was looking at buying today for the divi but nobody else seemed to be, as it dropped nearly 5%, so I didn't.

The divi is not inconsequential and good luck to the long term holders.

View attachment 146078

So it's a divi of $1.21 ff vs a drop of $0.98 with a way to go before it gets paid and in between some news on the Gladstone effort. And other Iron Ore companies run the same risk with a lesser divi though BHP and RIO are more diversified.

I should have bought at $14 in Nov 21, too greedy I was, and again good luck to those who bought at $2 and $4.

View attachment 146079

gg

It’s a $1.72 dividend including the franking.

Yeah the share price dropped today, but it’s still higher than it was last Wednesday, don’t let the swings and round about’s of market fluctuations get to you.

Buy Value when you see it, yep you should have bought at $14, you may get another chance who knows, but maybe take an each way bet and buy some before we get there, because we may not get there.

 

[Value Collector]

I wonder if ASIC are going to ask for some real justification for this claim? I think last FY FFI paid itself more in administration costs than operations. Any income?

View attachment 146083

FFI is basically a renewable energy start up, with a ship load of funding behind it, it’s totally possible if it was a Silicon Valley based company listed on the nasdaq it would get a super high valuation.

 

[Country Lad]

FFI is basically a renewable energy start up, with a ship load of funding behind it, it’s totally possible if it was a Silicon Valley based company listed on the nasdaq it would get a super high valuation.

Forrest on why FFI might already be worth $US20 billion​

“Fortescue can and will lead the green energy revolution,” Forrest said. “Energy must change. We have no choice. I mean, if you’re advocating for anything else, then you’re either economically or scientifically ignorant, or both.

He later added: “We chop through, like all the others, a few billion dollars a year in fossil fuels. We literally smoke it. It will be a great day, and I think it’s serious revenue and margin improving day, when we can make all our own fuels.”

Forrest told analysts that informal discussions with global funds managers indicated a potential value of $US20 billion ($A29 billion) for its Fortescue Future Industries offshoot, which is leading the company’s charge into green energy.

That, of course, is a notional valuation, and Forrest says he currently has no intention of separately listing the subsidiary.

 

[Value Collector]

Forrest on why FFI might already be worth $US20 billion​

“Fortescue can and will lead the green energy revolution,” Forrest said. “Energy must change. We have no choice. I mean, if you’re advocating for anything else, then you’re either economically or scientifically ignorant, or both.

He later added: “We chop through, like all the others, a few billion dollars a year in fossil fuels. We literally smoke it. It will be a great day, and I think it’s serious revenue and margin improving day, when we can make all our own fuels.”

Forrest told analysts that informal discussions with global funds managers indicated a potential value of $US20 billion ($A29 billion) for its Fortescue Future Industries offshoot, which is leading the company’s charge into green energy.

That, of course, is a notional valuation, and Forrest says he currently has no intention of separately listing the subsidiary.

That’s a great point, FMG buys 100’s of Millions of dollars worth of fuel and electricity each year, what other renewable energy start up can say they have a customer lined up that will not only take $100’s of millions of dollars worth of fuel, while also helping to fund the construction of their infrastructure?

FFI will have the benefit of as much funding as they need to get started, while also have a patient customer ready to offtake their products as they prove their concept.

By they time they need to sell their products to the out side world they will already have large scale and efficiency.

 

[divs4ever]

FMG announced a FY 2022 final dividend of $1.21 which is a very solid result.

I was working out the yield the dividend represents based on certain entry levels, and I realised that even if you purchased your FMG shares right at the peak of $26 18 months ago, you have been earning 15% dividend (including franking) over that 18 months, not a bad income return while you wait for FMG’s true value to be recognised.

Of course if you purchased sub $20 your dividend return has be amazing.

yes , i bought in , on the hope FMG could maintain a 2 x $1 divs. ( per year ) ( most years )

and i probably should have been more aggressive in my dip buying while sub $20 , but how much FMG do you hold ( compared to other stocks and sectors ) ??

on the flip side i may not be alive to see 'FMGs true value ' but 10% plus returns are pretty good , thanks very much

 

[qldfrog]

yes , i bought in , on the hope FMG could maintain a 2 x $1 divs. ( per year ) ( most years )

and i probably should have been more aggressive in my dip buying while sub $20 , but how much FMG do you hold ( compared to other stocks and sectors ) ??

on the flip side i may not be alive to see 'FMGs true value ' but 10% plus returns are pretty good , thanks very much

Will see, i still have buys but lower than today's

 

[divs4ever]

no FMG orders in for me ( YET ) will watch the US overnight to see if it is worth the effort

 

[divs4ever]

my av. SP is just over $17.85 with my lowest buy at $14.20 ( and my highest at $19.90 )

so MAYBE sub $17 will tempt me to nibble some more , but no guarantees on that

 

[Value Collector]

and i probably should have been more aggressive in my dip buying while sub $20 , but how much FMG do you hold ( compared to other stocks and sectors ) ??

I am about 50% FMG, as FMG grew in value it has ballooned to a major holding in my portfolio, so I am not actively adding to my FMG holding any more, but am happy to hold and am not selling.

75% of the after tax dividends go towards my spending money, and 25% is used to grow my portfolio in other areas.

 

[Value Collector]

my av. SP is just over $17.85 with my lowest buy at $14.20 ( and my highest at $19.90 )

so MAYBE sub $17 will tempt me to nibble some more , but no guarantees on that

So if you have held for the last two dividends, your $17.85 per share has been earning you 16.5% dividend (inc franking), you have to be happy with that.

 

[divs4ever]

So if you have held for the last two dividends, your $17.85 per share has been earning you 16.5% dividend (inc franking), you have to be happy with that.

happy with FMG so far , a little apprehensive of them rushing FFI investment ( it is easy to do )

I am about 50% FMG, as FMG grew in value it has ballooned to a major holding in my portfolio, so I am not actively adding to my FMG holding any more, but am happy to hold and am not selling.

75% of the after tax dividends go towards my spending money, and 25% is used to grow my portfolio in other areas.

FMG is less than 5% of a very diverse portfolio so have room to add if the price is right , but then again FMG isn't the only solid stock in town ( there are a few , but not a plague of them )

the trick is to have a different stock doing the heavy lifting when iron profits are down ( as rising costs will surely cause )

 

[Value Collector]

happy with FMG so far , a little apprehensive of them rushing FFI investment ( it is easy to do )

FMG is less than 5% of a very diverse portfolio so have room to add if the price is right , but then again FMG isn't the only solid stock in town ( there are a few , but not a plague of them )

the trick is to have a different stock doing the heavy lifting when iron profits are down ( as rising costs will surely cause )

happy with FMG so far , a little apprehensive of them rushing FFI investment ( it is easy to do )

FMG is less than 5% of a very diverse portfolio so have room to add if the price is right , but then again FMG isn't the only solid stock in town ( there are a few , but not a plague of them )

the trick is to have a different stock doing the heavy lifting when iron profits are down ( as rising costs will surely cause )

Yep, I agree diversification is important, I own a range of different investments outside FMG including the VAS and VGS which provide a lot of diversification.

 

[Garpal Gumnut]

To buy or not to buy, that is the question.

3.25 pm 2/9/2022

gg

 

[dat111]

To buy or not to buy, that is the question.

3.25 pm 2/9/2022

gg

I look at purchasing each year with the dividends that I received since the last time that I purchased. I would figure that FSUMF will retest last year's low of $10.25 before the end of the year. If it does not... I add the dividend money into the next year. Investing is not a race. I have been accumulating FMG since 2004. The most that I paid was $41.29 which underwent a 10-1 split. The least I have paid is $1.5. I would expect the price this year to be less than $10.25 as the exchange rate is 9% greater. All amounts are in US dollars. My expectation is that FMG will trade between $15.00 - $13.50 (AUD) after dividend is paid within the next year... So my plan is to purchase half of the dollar amount at the $15.00 (AUD)... then 25% at $14.75 (AUD) and then the balance at $13.50 (AUD)... I might not purchase this year but the dividend money will be moved to the future so I will eventually purchase.

 

[UMike]

To buy or not to buy, that is the question.

3.25 pm 2/9/2022

gg

Still have time. Can't see any amazing news that will cause it to jump in value.

 

[rcw1]

Good morning
Article published yesterday 02/09/22 by Prashant Mehra for finder; 1 minute read about FMG dividend, financials, demand and supply and a line about renewable energy.

Have you locked in the Fortescue (FMG) dividend yet? | finder.com.au

Shares in the iron ore exporter are down nearly 8% so far in 2022.

www.finder.com.au

Kind regards
rcw1

 

[Garpal Gumnut]

To buy or not to buy, that is the question.

3.25 pm 2/9/2022

gg

Well I did.

FMG is advancing again in spite of a tasty dividend.

Twiggy Forrest !

Always follow the mad and the dreamers is what I say.

gg

 

[Telamelo]

Well I did.

FMG is advancing again in spite of a tasty dividend.

Twiggy Forrest !

Always follow the mad and the dreamers is what I say.

gg

Helps that Iron Ore futures are soaring as BHP gained +3.41% as well

Great day for the big miner's.

 

[Value Collector]

Still have time. Can't see any amazing news that will cause it to jump in value.

Just shows you picking entry and exit levels are hard.

That’s why I don’t bother with market timing or following the news, I just buy value and hold.