Australian (ASX) Stock Market Forum

FMG - Fortescue Ltd

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I have continued buying FMG but am running out of cash.. I am considering taking out a loan to buy more.. (I usually only spend my own monies! but am very tempted) I noticed the LVG on this from comsec is 40% has that been reduced? Does anyone know if it was around 60% previously?
 
adobee said:
I have continued buying FMG but am running out of cash.. I am considering taking out a loan to buy more.. (I usually only spend my own monies! but am very tempted) I noticed the LVG on this from comsec is 40% has that been reduced ? does anyone know if it was around 60% previously ?
Click to expand...
I am not an authorised financial adviser, but I reakon taking out a loan to buy more of these is a brilliant idea.

I also suggest you take as much money as possible out of your credit card and put it into the market as well.

Also, what an opportunity to sell your family jewells and put it ALL in to FMG.

Of course, you could also sell a kidney and put it into the market right now!

I like your tactics!

I'm going out with my life savings and putting it all on black!

Wish me luck!

:)

Cheers,
kennas
 
adobee said:
I have continued buying FMG but am running out of cash.. I am considering taking out a loan to buy more.. (I usually only spend my own monies! but am very tempted) I noticed the LVG on this from comsec is 40% has that been reduced? Does anyone know if it was around 60% previously?
Click to expand...

Has this bear market taught people nothing...

Please, seriously, if the price keeps going down and you are buying in, and it's STILL going down, then why would it rise once you take out a loan and use money that you don't technically have?

Like the others have said, seek financial advice, because this is a risky idea and you will lose more than you think. :2twocents
 
say what you like.. this is a rare point in time where some people are going to loose alot of money and others are going to make alot of money.. I have an average price of about $3.. I dont have a wife and kids and I do have a good cashflow and am in a position to make or break.. See if I am still posting in 12months and we can all have a chat then ..
 
kennas said:
I am not an authorised financial adviser, but I reakon taking out a loan to buy more of these is a brilliant idea.

I also suggest you take as much money as possible out of your credit card and put it into the market as well.

Also, what an opportunity to sell your family jewells and put it ALL in to FMG.

Of course, you could also sell a kidney and put it into the market right now!

I like your tactics!

I'm going out with my life savings and putting it all on black!

Wish me luck!

:)

Cheers,
kennas
Click to expand...


Hmm Interesting post Kennas and hope you have returned from holiday now.
If GK Chesterton or Jean Paul would have been alived to read your satire they would join you too.
No one really knows now where the market is moving. If the big guns are rolling down how could people in FMG will withstand in this slide ?

Ironically (in an iron market) FMG sloped lesser extent than BHP and Rio have gone. I am talking on prices in last one week and please do not tell me that FMG already slipped from $12 to $2.86 now :)

Question about loan however - is not marginal loan still considered to be a cost effective means of course when the leverage is low? Then there are people who take loan and invest back in shares and property :confused:
 
Miner said:
Hmm Interesting post Kennas and hope you have returned from holiday now.
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Yes, good holiday, thank you! :)

Just trying to set a balance, as I always try to do.

Except if it's a stock I own .... LOL :)

Actually, I downramp my own stocks better than anyone else I reckon!!!

:)
 
lets consider our rivals:

BHP - 8.26%

RIO - 11.78%

FMG -5.15%

and you tell me people aren't looking for value at the moment
 
lol, this thread makes me laugh, reminds me of the BMN thread when the U craze was in full swing.

No matter which way you look at it FMG is a dog atm, just look at the chart.

What amazes me is some of the people in this thread still can't admit at $12+ FMG was overvalued, and now that market conditions and the world economy have changed they still expect FMG to have the same future prospects.

While it's fine being bullish on a stock, what's wrong with sitting out for a while and at least waiting for some signs the sp is turning around?

Have any of the bulls in this thread thought about what could happen to the sp if this isn't the bottom, and the world economy gets worse?
 
nomore4s said:
lol, this thread makes me laugh, reminds me of the BMN thread when the U craze was in full swing.

No matter which way you look at it FMG is a dog atm, just look at the chart.

What amazes me is some of the people in this thread still can't admit at $12+ FMG was overvalued, and now that market conditions and the world economy have changed they still expect FMG to have the same future prospects.

While it's fine being bullish on a stock, what's wrong with sitting out for a while and at least waiting for some signs the sp is turning around?

Have any of the bulls in this thread thought about what could happen to the sp if this isn't the bottom, and the world economy gets worse?
Click to expand...

yeah... it's a dog with earnings of $600 million to date :rolleyes:


i wont continue to provide my feedback - people know where i stand

enough said
 
I must admit real value in relation to companies SP seems to have gone out the window in this climate so yeah no knows how far down SP will get pushed. Looking back I am also looking to admit $12 was overpriced.

Looks like the volatility is not so great though at this $3.00 SP at the moment except for a 50% rise in one day a few days ago now.
 
adobee said:
Buddy if you have cash big savings you dont need a loan.. if you have cashflow you can support a loan..
Click to expand...

If you have good cash flow, why not save some money to buy, the sp isn't going anywhere atm, and even if it starts to head north just buy on the next dip - at least then the sp will be moving in the right direction.

If FMG is going to be such a great long term blue chip, who cares if you miss the first bit of the move, there will be plenty of time to get in when it does start to go up.
 
From the charting point of view there is much indecision in fmg's recent price and volume movements.

It is in a hell of a downtrend.

It is now in a descending triangle pattern and if it goes below 2.62 on higher volume it will fall a considerable way imo.

A chart from last night. Its about 2.89 as I post on moderate to low volume.

I would be not buying at present, probably at lower sp though

gg
 

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I think FMG are still very smart with their announcements, they always seem to have an up to date presentation somewhere.

Personally at looking at the latest presentation I'm still very optimistic, and yes I realise it's a bit of marketing hype.

Looking at what they have achieved and built in infrastructure:
Brand new rail line, train loaders
Stackers, crushing and screening plants
Port

and the ugrade to 160mtpa etc

With all the doomsday scenarios I can't see how it's not undervalued now if it was overvalued at $12.00, maybe someone with a bit more fundamental analysis can shed more light? I've said before though that at the moment value seems to have nothing to do with a company's share price
 
SenTineL said:
With all the doomsday scenarios I can't see how it's not undervalued now if it was overvalued at $12.00, maybe someone with a bit more fundamental analysis can shed more light? I've said before though that at the moment value seems to have nothing to do with a company's share price
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Im at uni now but cant give a detailed anlysis, but if you look back in about April or so I was calling fair value at about $6.50.

This was mainly based on projected earnings and PE ratios, however while they may be fundamentally undervalued, virtually every stock on the bourse is and we all know the pain of trying to go against sentiment.
 
I would be very wary buying in at present: From ABC site today.

Access Economics' latest business outlook predicts that China's economy has now joined the list of nations hit by the global financial crisis, and that Australia will feel the effects.

China says that its growth will slow slightly to nine per cent next year but Access Economics director Chris Richardson expects it will be a shade above 7 per cent.

He says that could push Australia's Budget into deficit.

Mr Richardson told the ABC that while he thinks Australia will avoid a recession, it will feel like the country is in one.

"It's a problem for Australia as markets fall, share markets, property values fall in China. And as construction weakens off, that's weakening the demand for steel and Australia's risk is we sell the inputs that become Chinese steel - coking coal and the iron ore," he said.

He says spot steel prices have fallen from $US1,200 a tonne in July to $US255 a tonne yesterday.
 

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