FMG - Fortescue Ltd

[farmerge]

FMG in the yearly comp .SP has been fluctuating a bit but is still a good-un either as a trade or hold.

 

[Sean K]

Yikes!

Anyone seen anything like this. Ever.

 

[farmerge]

Yikes!

Anyone seen anything like this. Ever.

View attachment 169840

One might suggest oophs

 

[qldfrog]

One might suggest oophs

Isn't it the way for FMG management FIFO ..no... LIFO last in first out

 

[Sean K]

Are senior management FIFO or FILO?

I'm sure they're based somewhere along the Swan or dialling it in.

 

[Value Collector]

Yikes!

Anyone seen anything like this. Ever.

View attachment 169840

It’s understandable, The mining side of things was being run as a separate entity to the “Fortescue Future Industries”/energy side of things. Each entity had its own CFO but as mentioned a few weeks back the decision has been made to combine the two, so they don’t need two CFO’s any more.

 

[joeno]

Good stock movements. We've went far from $1.7 in 2015, to $6, to $29 my only regret is I didn't have a lot of spare cash back then to drop a huge stack in late 2015.

 

[farmerge]

Good stock movements. We've went far from $1.7 in 2015, to $6, to $29 my only regret is I didn't have a lot of spare cash back then to drop a huge stack in late 2015.

As the story goes way back when. Twiggy was getting a hair cut with his regular barber suggested to the husband and wife team to put their house on FMG when it was in its infancy. Were soon to become multi millionaires.

 

[Value Collector]

Is your price target still $7 VC?

As a minimum.

I still remember this discussion we had, FMG was under $3 at the time, and $7 seemed like a crazy prediction for me to make to most people.

but here we are 7 years later and the stock is $29 now

I just looked looked over some of the posts I made on this thread back in 2015 and 2016, it’s amazing how much flak I copped at the time for analysis that I thought was just basic rational thinking, but I was proven correct so that’s always a good feeling.

I feel like this guy.

 

[Garpal Gumnut]

Yes, @Value Collector , I only ever employed some mates to deliver newspapers, they are all multimillionaires now btw. My dilemma is whether to sell this plump pup at around $29.50 or whether to add some more knowing how well my unshod, starving mates did in life.

Fundamentally it is a dog, significant people resigning, hydrogen on the nose and Twiggy yahooing about the place like one of Scomo's mates with plates of a Sunday morning.

On the chart though it all looks good, with volume and a normal pullback today. Iron is sweet and the economy in WA seems to provide Twiggy with happy slaves to work for millions.

I might start selling newspapers. It is never too late.

Then again, a profit is a profit.

Decisions.

gg

 

[Value Collector]

Yes, @Value Collector , I only ever employed some mates to deliver newspapers, they are all multimillionaires now btw. My dilemma is whether to sell this plump pup at around $29.50 or whether to add some more knowing how well my unshod, starving mates did in life.

Fundamentally it is a dog, significant people resigning, hydrogen on the nose and Twiggy yahooing about the place like one of Scomo's mates with plates of a Sunday morning.

On the chart though it all looks good, with volume and a normal pullback today. Iron is sweet and the economy in WA seems to provide Twiggy with happy slaves to work for millions.

I might start selling newspapers. It is never too late.

Then again, a profit is a profit.

Decisions.

gg

Fundamentally it’s definitely not a dog, even if you think the Energy Business will turn out like Woolies Bet on Masters hardware, there is a fantastic Iron Ore Business to fall back on.

if the Energy Business does ok, it could easily end up twice the size of the Iron Ore business, and it’s basically a free bet, because all you are paying for at $29.50 in the Iron Ore businesses dividend stream.

 

[Garpal Gumnut]

Fundamentally it’s definitely not a dog, even if you think the Energy Business will turn out like Woolies Bet on Masters hardware, there is a fantastic Iron Ore Business to fall back on.

if the Energy Business does ok, it could easily end up twice the size of the Iron Ore business, and it’s basically a free bet, because all you are paying for at $29.50 in the Iron Ore businesses dividend stream.

Yeh, well all the experts think it is a dog. I don't think it is a dog btw just saying fundamentally it is a dog, so all your mates arre saying sell.

I'm unsure because I go 60% on charts in my decision making and 40% on what your mates say. You see I'm never always right. that's the difference.

gg

 

[Value Collector]

Yeh, well all the experts think it is a dog. I don't think it is a dog btw just saying fundamentally it is a dog, so all your mates arre saying sell.

I'm unsure because I go 60% on charts in my decision making and 40% on what your mates say. You see I'm never always right. that's the difference.

gg

The experts have been saying that since it was $1.80

 

[farmerge]

I still remember this discussion we had, FMG was under $3 at the time, and $7 seemed like a crazy prediction for me to make to most people.

but here we are 7 years later and the stock is $29 now

I just looked looked over some of the posts I made on this thread back in 2015 and 2016, it’s amazing how much flak I copped at the time for analysis that I thought was just basic rational thinking, but I was proven correct so that’s always a good feeling.

I feel like this guy.

If only if only. I bought into FMG in the very early days and sold out at around the $6 mark thinking it wouldn't do much better. Trouble was the Bloke in the Mirror wasn't singing very loudly about FMG. One of his very few blunders !!!!

 

[basilio]

I suppose the question in my mind is whether FMG is overpriced at the moment ? Is $29-30 a fair price or is there good reason to think it will fall back a few dollars ?

 

[Value Collector]

I suppose the question in my mind is whether FMG is overpriced at the moment ? Is $29-30 a fair price or is there good reason to think it will fall back a few dollars ?

The share price certainly has a chance of falling, it’s certainly going to fluctuate, but if it can average $2 franked dividend per year, that’s a 9.52% dividend yield based on a $30 buy price.

Earning a 9.52% dividend, while also having 30% of the company earnings retained and reinvested inside the company for growth is pretty attractive.

If it sold on the same dividend yield as -

BHP it would be worth $39.00
CBA it would be worth $50.00

 

[farmerge]

I suppose the question in my mind is whether FMG is overpriced at the moment ? Is $29-30 a fair price or is there good reason to think it will fall back a few dollars ?

Today's close of play $29.88. Seems nothing is going to slow this train down at the moment. And of course the higher the SP the more wealthy Twiggy and Nicola are, on paper that is.

 

[Value Collector]

Today's close of play $29.88. Seems nothing is going to slow this train down at the moment. And of course the higher the SP the more wealthy Twiggy and Nicola are, on paper that is.

And the bigger their donations to charity will be . Extra billions won‘t Change their person spending, but it will change the scale of their charity work.

 

[mullokintyre]

And another one goes from FMG.
From Evil Murdoch press

Former Northern Territory chief minister Michael Gunner has quit Andrew Forrest's Fortescue, the latest high-profile departure from the billionaire's mining and energy empire.
Fortescue's green energy division hired Mr Gunner in October 2022 three months after he resigned from parliament, one of several big name recruits at the time including Guy Debelle, the Reserve Bank's former deputy governor.
However, Mr Gunner has joined the procession of executives leaving Fortescue.
A social media post blamed the amount of travel away from his base in Darwin following a promotion last year.
"After taking on the Australian Director role in August it meant more travel away from Darwin and the family, which I found too difficult.
"I’m taking a bit of time before deciding with the family what I do next and am now reporting for lunchbox duty," Mr Gunner said in a LinkedIn post.
Mr Gunner was initially hired to lead Fortescue Future Industries' northern Australian operations in November 2022.
He was then promoted to a position as director of Australia and New Zealand in August 2023.
"Working for Andrew and Fortescue was an incredible opportunity – a dynamic company with a bold green energy vision. I will always be a friend of the Fortescue family and an advocate for Fortescue and the path they are forging," Mr Gunner added.
A Fortescue spokesman said: "We respect Michael's decision and his personal reasons for making it, and wish him and his family well."
Earlier this week the finance boss of Fortescue's energy division, Deborah Caudle, left the company after a consolidation of Fortescue's finance functions.
A revolving door of executives have jumped ship from the company in the last 12 months as pressure grows on Fortescue to execute a high stakes pivot to green energy from its iron ore foundations which made its founder one of Australia's richest men.
In August 2023 Fortescue's chief executive Fiona Hicks and chief financial officer Christine Morris both quit while Mr Debelle resigned as a director of Fortescue Future Industries.

There can't be any more c-suit perons there in FMG apart from Twiggy.
At what point do shareholders start asking the obvious question.
Why have so many left?
Mick

 

[Garpal Gumnut]

And another one goes from FMG.
From Evil Murdoch press

There can't be any more c-suit perons there in FMG apart from Twiggy.
At what point do shareholders start asking the obvious question.
Why have so many left?
Mick

One must be careful about considering ex politicians to be skilled or valuable. Unfortunately C-Suite is often synonymous with talented or good.

Often the progression to politics andI don't consider Gunner in this, is, used care salesman to failed self employed business, to some dodgy enterprise like the NDIS and then vroom to politics and then to a board seat.

I hope we never lose sight of one thing, if it all It all started from selling used cars, can the person really be all that magnificent.

gg