FMG - Fortescue Ltd

gav · 14 October 2008

njc.corp said:
gav-look at it from this view-if the dow last night would have been -800 points none of this would have happen?

well i think so as i am having a had time trying to see any stock not doing good today

u win some and u dont

is this a big gain before we go south again?

i am happy to sit back and watch

good to see the fmg holders get some money back-

Hope all goes well and everyone makes a good earn--

Thanks

Nick--

I think I will sit back and watch for a while. At first I thought I should have had a stop loss. So when I bought into IPL a couple of weeks back I had one. It was 20%, I thought that was plenty of lee-way considering the volatility we've been having. Got stopped out in just one week. If I had've held, I'd be about even now (with IPL). Im stuffed if I do, stuffed if I dont.

I've lost over half my capital in less than 4 months.

jackson8 · 14 October 2008

hi guys

just wondering if anyone has any ideas as to why their are hardly any trades on the fmg options market for any of the series

i would have thought such a volatile stock would have attracted a lot of interest in options tradeing with this one

regards gary

prawn_86 · 14 October 2008

gav said:
I've lost over half my capital in less than 4 months.

Perhaps its time to sit it out and re-evaluate and maybe just do some paper trading to try and find a better method.

Nesa · 14 October 2008

what an excellent day

DOW finished 11% higher

FMG currently 50+% higher

can't complain in seeing green again.

Bushman · 14 October 2008

Good on the holders.

The way i look at an FMG is that it would be impossible to fund the infrastructure they have built in today's market - and probably for some time to come.

China could well slow down in the short to medium term but I am sure the model was not priced at $80 per tonne - probably half that.

So maybe not the blue sky upside but surely the downside is contained somewhat.

Interesting days in the iron ore junior sector.

DYOR.

Sean K · 14 October 2008

AWESOME move today, but one day does not make a recovery. It's back to where is was a week ago.

No extra negativity from me, just a reality check.

I am hopeful that Friday was a bottom, but the bear in me is saying sideways at best for some time.

njc.corp · 14 October 2008

gav said:
I think I will sit back and watch for a while. At first I thought I should have had a stop loss. So when I bought into IPL a couple of weeks back I had one. It was 20%, I thought that was plenty of lee-way considering the volatility we've been having. Got stopped out in just one week. If I had've held, I'd be about even now (with IPL). Im stuffed if I do, stuffed if I dont.

I've lost over half my capital in less than 4 months.

Gav thats not good to hear-like prawn said and i will say it again-

their is nothing wrong in waiting around for a nice calculated enviroment-

i stoped trading a while back because i could not see anything-i could not concentrate-i just needed a break-just too risky-(call me a wimp- i dont care as i got money to trade when it comes around)

i made good money this year-and gave back a bit too-but the point is if nothing going your way its a good sign of just sitting around and waiting for the good times

the name of game is to have money wether u selling or buying

capital is a needed product or else its just talk and no play-

have a good think and take it easy

Takecare-

Thanks

Nick--

gav · 14 October 2008

Fortescue gets its payments

THE executive director of Fortescue Metals, Graeme Rowley, says the iron ore miner's Chinese customers are continuing to pay for their shipments in a timely manner despite the credit crunch.

The traditional method of payment in the shipping market - letters of credit - has tightened in recent weeks, causing costs to surge for companies looking to import products like iron ore.

"If a customer cannot get the [letters of credit], they cannot send the ships, and that may have happened, and may continue to happen, and long as the Chinese credit crunch continues," said a Merrill Lynch analyst, Mike Harrowell, in reference to Mount Gibson Iron's announcement last week that customers had asked it to postpone shipments. "The easing of lending conditions should improve this situation."

In its September quarterly report, published yesterday, Fortescue said revenue from some shipments made during the quarter had not been received by the end of the quarter.

Fortescue's shares closed 14c higher at $2.82, after rising as high as $3.18 before it published its quarterly report, which did not include standard information such as quarterly production and sales figures.

"It is a little bit confusing and not very clear, to be honest," said a BBY analyst, John Veldhuizen. "I'm surprised, I must admit."

Mr Rowley said Fortescue had received all of the outstanding shipping payments - involving five shipments - since the start of the month.

"What you had at the [quarterly] cut-off is while we had the guaranteed payment, the cash had not been received in the bank," he said.

Fortescue shipped 6.9 million tonnes of iron ore during the September quarter with an average grade of 59 per cent, receiving an average of $90 a tonne.

Mr Rowley said the company had already shipped an additional 700,000 tonnes this month and had negligible stockpiles of ore.

Fortescue, which will reach an annual production rate of 45 million by the end of the year, plans to spend up to $2 billion on expanding capacity to 80 million tonnes by the end of next year.

The company said it would later expand to 160 million tonnes of annual production "as the market conditions warrant".

Mr Rowley said all 160 million tonnes could be obtained from its Cloud Break and Christmas Creek deposits, which have a higher grade and lower impurities than its Solomon deposit in the western Pilbara.

Fortescue yesterday said it had applied for exploration licences off the coast of the Pilbara region.

It is investigating the potential for iron sands dredging in that area and in New Zealand.

Fortescue, which had negative operating cash flows of $227 million in the quarter, said it had benefited strongly from the recent weakening in the Australian dollar. It does not have any currency hedging.

Prospector · 14 October 2008

OK people, after selling last week for a small loss, I bought back in (but a reduced holding) YESTERDAY! Not sure for how long though; a bad day on the DJ and might regret it!

njc.corp · 14 October 2008

gav said:
Fortescue gets its payments

THE executive director of Fortescue Metals, Graeme Rowley, says the iron ore miner's Chinese customers are continuing to pay for their shipments in a timely manner despite the credit crunch.

The traditional method of payment in the shipping market - letters of credit - has tightened in recent weeks, causing costs to surge for companies looking to import products like iron ore.

"If a customer cannot get the [letters of credit], they cannot send the ships, and that may have happened, and may continue to happen, and long as the Chinese credit crunch continues," said a Merrill Lynch analyst, Mike Harrowell, in reference to Mount Gibson Iron's announcement last week that customers had asked it to postpone shipments. "The easing of lending conditions should improve this situation."

In its September quarterly report, published yesterday, Fortescue said revenue from some shipments made during the quarter had not been received by the end of the quarter.

Fortescue's shares closed 14c higher at $2.82, after rising as high as $3.18 before it published its quarterly report, which did not include standard information such as quarterly production and sales figures.

"It is a little bit confusing and not very clear, to be honest," said a BBY analyst, John Veldhuizen. "I'm surprised, I must admit."

Mr Rowley said Fortescue had received all of the outstanding shipping payments - involving five shipments - since the start of the month.

"What you had at the [quarterly] cut-off is while we had the guaranteed payment, the cash had not been received in the bank," he said.

Fortescue shipped 6.9 million tonnes of iron ore during the September quarter with an average grade of 59 per cent, receiving an average of $90 a tonne.

Mr Rowley said the company had already shipped an additional 700,000 tonnes this month and had negligible stockpiles of ore.

Fortescue, which will reach an annual production rate of 45 million by the end of the year, plans to spend up to $2 billion on expanding capacity to 80 million tonnes by the end of next year.

The company said it would later expand to 160 million tonnes of annual production "as the market conditions warrant".

Mr Rowley said all 160 million tonnes could be obtained from its Cloud Break and Christmas Creek deposits, which have a higher grade and lower impurities than its Solomon deposit in the western Pilbara.

Fortescue yesterday said it had applied for exploration licences off the coast of the Pilbara region.

It is investigating the potential for iron sands dredging in that area and in New Zealand.

Fortescue, which had negative operating cash flows of $227 million in the quarter, said it had benefited strongly from the recent weakening in the Australian dollar. It does not have any currency hedging.

Gav the article seems interesting but it does nothing-media hype-

look at what u are doing and look at the current price as of now-

the reason i say this is that their has been many articles written on fmg and other stocks but one thing that does not change is the current price as of now-

its how u look at the price is what returns or ideas of how u are going to attack it is the key-

i am not a fmg hater but i seen so many articles which contain good and bad but we forget about the current price-

Thanks

Nick--

Frankhalo · 14 October 2008

Today.

The company shipped 8.5 million metric tons of iron ore and reported sales of A$645 million in the three months to Sept. 30, it said in a statement yesterday. A drop in the Australian dollar in the period "added significantly to the company's bottom line,'' as it earns revenue in dollars, Fortescue said.

"There has been some good off-shore buying,'' in Fortescue today, MF Global's Anderson said today. "China's growth is still going to be between 7 and 9 percent and that spells OK times for Fortescue. They have benefited from this fall in the Aussie dollar, they're unhedged and all their shipments to customers have been accepted.''

Concerns over demand for the ore were sparked last week after Australian rival Mt. Gibson Iron Ltd. reported Chinese customers asked it to postpone deliveries because of slowing steel sales and a lack of credit. Contract iron ore prices may drop 20 percent in 2009, the first decline in seven years, Patersons Securities Ltd. said in an Oct. 10 report.

Baosteel Group Corp., China's largest steelmaker, and Tangshan Iron & Steel Co. are Fortescue's two biggest customers.

agro · 14 October 2008

today i have been speechless, well done FMG and all those who have faith, the best is yet to come..

i certainly would like to hear the opinion of skeptics (e.g. people with opposing views).. i wont point any names out cause i might get into trouble

cheers

just to give you some of my history:

last year, July 2007, I had FMG at $29.05 (2.95 now), i held it all the way to $13+ did not sell, and rode it all the way down until selling due to a margin call at $5.05

I managed to get back in around $2.80 - had to sell CEY, managed to sell it at 3.50 (yesterdays peak) and shifted to FMG.

I am just stoked it worked out for me and the fact that i still hold my shares in FMG

njc.corp · 14 October 2008

agro said:
today i have been speechless, well done FMG and all those who have faith, the best is yet to come..

i certainly would like to hear the opinion of skeptics (e.g. people with opposing views).. i wont point any names out cause i might get into trouble

cheers

just to give you some of my history:

last year, July 2007, I had FMG at $29.05 (2.95 now), i held it all the way to $13+ did not sell, and rode it all the way down until selling due to a margin call at $5.05

I managed to get back in around $2.80 - had to sell CEY, managed to sell it at 3.50 (yesterdays peak) and shifted to FMG.

I am just stoked it worked out for me and the fact that i still hold my shares in FMG

Argo- i dont feel that i am a skpetic as i been in fmg before the same as u from 7.60 all the the way to 12.50-12.70 region-

has i told u last time i have a big share which i mention

dont think i am a hater since i am out-i like to see all u guys do well-

but my reasons for being out of the market is prety basic-if we had a good couple of years their must be more slowdown and down trends-

thats all really-

i have nothing open at the moment-

so please dont think since i am no longer holding fmg i am against it-

its still a good company and it will grow like a small business with cool heads running it-

Thanks

Nick--

cruise61 · 14 October 2008

agro said:
today i have been speechless, well done FMG and all those who have faith, the best is yet to come..

i certainly would like to hear the opinion of skeptics (e.g. people with opposing views).. i wont point any names out cause i might get into trouble

cheers

just to give you some of my history:

last year, July 2007, I had FMG at $29.05 (2.95 now), i held it all the way to $13+ did not sell, and rode it all the way down until selling due to a margin call at $5.05

I managed to get back in around $2.80 - had to sell CEY, managed to sell it at 3.50 (yesterdays peak) and shifted to FMG.

I am just stoked it worked out for me and the fact that i still hold my shares in FMG

hahah yer im always getting in trouble and having my post removed , but like i say ,i say it as i see it and i dont just throw endless amounts off cash in to a share that i havnt researched or am about to lose on .

GO FMG

Let the ride continue

agro · 14 October 2008

cruise61 said:
hahah yer im always getting in trouble and having my post removed , but like i say ,i say it as i see it and i dont just throw endless amounts off cash in to a share that i havnt researched or am about to lose on .

GO FMG

Let the ride continue

yeh mate

i have been following the company since late 06... you can check out the earlier posts in this thread for proof.. i have received alot since then, and no doubt will i continue to receive alot of slack... that's life

i wouldn't put my hard earned into a company i had no faith in

look how far Twiggy has come.. i could write a thesis on this but i wont

best of luck to all holders

agro

Joe Blow · 14 October 2008

cruise61 said:
hahah yer im always getting in trouble and having my post removed , but like i say ,i say it as i see it and i dont just throw endless amounts off cash in to a share that i havnt researched or am about to lose on .

GO FMG

Let the ride continue

The posts that were removed contained absolutely no content, much like the one I am responding to. We will continue to remove posts like this as they add absolutely no value to the thread.

If, as you say, you have done plenty of research into FMG then perhaps you could share some of it with those reading this thread. After all, the purpose of a forum like ASF is so that those who have some information, news or analysis to share on a particular stock can do so and everyone can benefit as a result.

Those who are here simply to ramp or downramp can do so at another forum as we expect those posting in stock threads at ASF to contribute some meaningful/useful content.

BrownHornet · 14 October 2008

agro said:
today i have been speechless, well done FMG and all those who have faith, the best is yet to come..

i certainly would like to hear the opinion of skeptics (e.g. people with opposing views).. i wont point any names out cause i might get into trouble

Are we nuts? The price has returned to where it was a week ago. Still a long way off $13 where many held. Think it is drawing a long straw saying well done FMG and those who have faith. YEAH great if you bought at $2.50. Suspect most here didn't.

But yes well done to those that picked a bottom. Price up has little to do with changes to FMG itself.

Frankhalo · 14 October 2008

Not out of the woods yet, nor are quality stocks on the ASX going to go belly up as some posters seem to suggest is the case with FMG. I'm no accountant, but the business model that is FMG sits very well with me, even more so with yesterdays Sept report, come Sept 09 based on the figures I read yesterday and potenial to achieve 80mta I'll take may day in the sun today and tommorow, if its $4.37 with an output of 8 - 9 million tons so far I'm tipping it will be alot more come 55 - 80mta, plus a check in the mail yearly.

As of 5.00pm today:
1474 buyers for 4,698,024 units
266 sellers for 1,265,958 units .....

I do like this ratio.

cruise61 · 14 October 2008

Frankhalo said:
Not out of the woods yet, nor are quality stocks on the ASX going to go belly up as some posters seem to suggest is the case with FMG. I'm no accountant, but the business model that is FMG sits very well with me, even more so with yesterdays Sept report, come Sept 09 based on the figures I read yesterday and potenial to achieve 80mta I'll take may day in the sun today and tommorow, if its $4.37 with an output of 8 - 9 million tons so far I'm tipping it will be alot more come 55 - 80mta, plus a check in the mail yearly.

As of 5.00pm today:
1474 buyers for 4,698,024 units
266 sellers for 1,265,958 units .....

I do like this ratio.

Well said Frank

I hold 2 lots of FMG , 1 lot from when price was coming down from 13 that i got at 7.23 for long term and the other i couldnt resist the low on Fri and bought up at 2.74 but alas the mortgage needs to be paid so they went today at 4.26 giving me 1.56 prof per share.

Probaly done the wrong and shoulda held longer as FMG does look good but i will cotinue to bat with my long terms and support FMG.

investedz · 14 October 2008

jackson8 said:
hi guys

just wondering if anyone has any ideas as to why their are hardly any trades on the fmg options market for any of the series

i would have thought such a volatile stock would have attracted a lot of interest in options tradeing with this one

regards gary

Where are you getting your volume data from?
I've noticed the volume for FMG options as shown on the ASX website, are the same to OptionsXpress's data, but the open interest shows all zeros. There are some open interest shown in OptionsXpress. There might be something wrong with the ASX:FMG page?

Actualy looking at the options for the other shares on the ASX site, they all show zero open interest...

But yes you are right. Regardless, there isn't much open interest on the options for FMG (1 digit, 2 digit open interest), and surprisingly there wasn't much change in premium after the 50%+ rise of the underlying asset.

My guess is because of the lack of interest on the options, there is the lack of change in premium, which I guess makes options trading on FMG not so liquid.

Can anyone shed light on this?

Tomorrow will probably be a different story. FMG today was rated the highest gainer on the ASX:

http://markets.smh.com.au/apps/mkt/movers.ac

By now FMG would have caught attention from all sorts of traders/investors focused on other companies, including options traders.

Very interesting to see what will happen tomorrow.

FMG - Fortescue Ltd

gav

jackson8

prawn_86

Mod: Call me Dendrobranchiata

Nesa

Bushman

Sean K

Moderator

njc.corp

gav

Prospector

Not a scaredy cat anymore

njc.corp

Frankhalo

Casino, theres a better choice

agro

njc.corp

cruise61

agro

Joe Blow

Administrator

BrownHornet

Frankhalo

Casino, theres a better choice

cruise61

investedz

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