FMG - Fortescue Ltd

[Value Collector]

My understanding was that the seller announced they had 100 million shares for sale at market and over the evening the brokers had to line up enough buyers to clear that sale before the opening of formal sales. Clearly puts enormous pressure on the price.

Interestingly enough the SP dropped even further as confidence was lost. Today there has been some partial recovery.

So I believe the company selling the block sold it at a discount to a consortium of investment banks, who then bring it to market and sell it over time onto the market, trying to make a margin between their discounted buy price and the current market price.

So yesterday the much larger volumes hitting the market than normal was the block trade being distributed onto the market.

 

[basilio]

So I believe the company selling the block sold it at a discount to a consortium of investment banks, who then bring it to market and sell it over time onto the market, trying to make a margin between their discounted buy price and the current market price.

So yesterday the much larger volumes hitting the market than normal was the block trade being distributed onto the market.

Aha ! That makes sense. I was really wondering how the brokers were able to somehow "produce" buyers for the big share block. So from an investors POV the huge "sale" of FMG shares shows itself as a very steep drop in price because that in fact is the average price at which the shares have been acquired and then the open market attempts starts making decisions about buying back in at the discounted price or higher.

Thanks

 

[over9k]

EP is exercised put. XT is cross trade. A cross trade is a practice where buy and sell orders for the same asset are offset without recording the trade on the exchange. The asset managers for both client accounts (or both could have the same manager) will match the buy and sell orders and execute them privately, without recording the transaction on the exchange. So the sale is still placed on the public record so we all know about it but it doesn't actually go *through* the exchange.

It'd be a bit like if I wanted to sell my house and you wanted to buy it so you bought if off me privately without me ever actually publicly listing it but we'd still have to put a record of the sale and its price up on domain for everyone else to see to use as a reference point to value other houses in the area.

 

[over9k]

Aha ! That makes sense. I was really wondering how the brokers were able to somehow "produce" buyers for the big share block. So from an investors POV the huge "sale" of FMG shares shows itself as a very steep drop in price because that in fact is the average price at which the shares have been acquired and then the open market attempts starts making decisions about buying back in at the discounted price or higher.

Thanks

Precisely. It's why the private sale needs to still be on the public record.

 

[TimeISmoney]

I think it will take about 5 working days to trade out the big block sale, average daily Vol is 6 mil and yesterday the total Vol was 26 mil.
FMG is trading close to the average block sale price at least.

 

[over9k]

Meanwhile, RIO just posted a bumper profit. There might be a rotation from FMG to RIO going on.

 

[farmerge]

FMG is still one of my "favoured" picks in the Yearly Comp.
Sadly the wheels have fallen off the train since the start of the year, but I still see it as a must hold.

 

[TimeISmoney]

APPOINTMENT OF NON-EXECUTIVE DIRECTOR

Fortescue Ltd (Fortescue, ASX: FMG) today advises that prominent Australian indigenous leader,social advocate and lawyer, Mr Noel Pearson has been appointed to the Fortescue Board as aNon-Executive Director.

 

[Rabbithop]

APPOINTMENT OF NON-EXECUTIVE DIRECTOR

Fortescue Ltd (Fortescue, ASX: FMG) today advises that prominent Australian indigenous leader,social advocate and lawyer, Mr Noel Pearson has been appointed to the Fortescue Board as aNon-Executive Director.

View attachment 181789

Your pic tells the story...

 

[basilio]

APPOINTMENT OF NON-EXECUTIVE DIRECTOR

Fortescue Ltd (Fortescue, ASX: FMG) today advises that prominent Australian indigenous leader,social advocate and lawyer, Mr Noel Pearson has been appointed to the Fortescue Board as aNon-Executive Director.

View attachment 181789

An astute move by FMG. Noel Pearson is well respected and will certainly offer important perspectives to how FMG develops it's relations with the indigenous communities on native lands.

 

[TimeISmoney]

An astute move by FMG. Noel Pearson is well respected and will certainly offer important perspectives to how FMG develops it's relations with the indigenous communities on native lands.

I'd say he has just as many haters as likers, but he is hardly a mining industry specialist.

Twiggy is having a few problems with royalties, it's a long shot to use him as a tool to liaise with this business.
Most Indigenous won't take advice from anyone outside of their clan to start with, and he is not much liked by them either.

I personally think this company is starting to get too political, they just need to stick to mining iron ore.

 

[farmerge]

APPOINTMENT OF NON-EXECUTIVE DIRECTOR

Fortescue Ltd (Fortescue, ASX: FMG) today advises that prominent Australian indigenous leader,social advocate and lawyer, Mr Noel Pearson has been appointed to the Fortescue Board as aNon-Executive Director.

View attachment 181789

I suppose it had to happen at some stage, whether he is director material remains to be seen.

 

[Ferret]

they just need to stick to mining iron ore

My feelings exactly.

 

[basilio]

I'd say he has just as many haters as likers, but he is hardly a mining industry specialist.

Twiggy is having a few problems with royalties, it's a long shot to use him as a tool to liaise with this business.
Most Indigenous won't take advice from anyone outside of their clan to start with, and he is not much liked by them either.

I personally think this company is starting to get too political, they just need to stick to mining iron ore.

Sorry Time that simply isn't possible. Being one of the biggest iron ore miners in Australia and having China as your major partner/customer makes one political. Yes the mechanics of mining and moving ore is practical. But the rest of the game has many, many political elements.

Time will tell what impact Noel Pearson will have at FMG. As far as Board Directors go the ASX is littered with companies that offer Board Positions as sinecures to ex politicians or other high ranking ex government employees.

 

[Rabbithop]

An astute move by FMG. Noel Pearson is well respected and will certainly offer important perspectives to how FMG develops it's relations with the indigenous communities on native lands.

I will sit tight to watch the play.
i am a holder.

 

[TimeISmoney]

I will sit tight to watch the play.
i am a holder.

I've pooped my pants enough with the hydrogen bungle, It's 50% of my portfolio holdings.

I hope he can get some confidence back in the SP price, the divs are looking good for this year but there doesn't seem to be a lot of confidence in future iron prices ATM, I wish that changes.

 

[Value Collector]

 

[TimeISmoney]

Sheeesh! How low can you go?

 

[divs4ever]

i bought as low as $14.20 in 2021

maybe that will happen again

 

[Chipp]

i bought as low as $14.20 in 2021

maybe that will happen again

Lot of parellels no doubt