FMG is way overvalued. The dividend appears to disguise the level of debt by creating a distraction and illusion.
The P/e ratio is often used justify company value and is accepted as a measure of value. The problem with FMG they are on a cost cutting exercise which appears to be a measure to stay solvent. Cost cutting for the purpose of solvency is a dangerous game.
Cost cutting from $15.80 to $28.48 is quite a drop and too good to be true. What have they cut?
Cost cutting to this level in opinion doesn't appear credible or very creative accounting.
$US15.80 per wet metric tonne, compared to $US28.48 a tonne reported a year ago.
http://www.abc.net.au/news/2016-01-28/fortescue-cuts-costs-as-iron-ore-prices-fall/7120390
The current iron ore price and oil price is a dead cat bounce and there will be a lot more pain.
How will they survive when Iron ore prices fall down to $15 ton.
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Last
$16.20 |
Change
0.080(0.50%) |
Mkt cap ! $49.87B |
Open | High | Low | Value | Volume |
$15.98 | $16.34 | $15.91 | $139.5M | 8.619M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 70232 | $16.19 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$16.20 | 830 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 70232 | 16.190 |
5 | 4974 | 16.180 |
1 | 2800 | 16.170 |
3 | 110264 | 16.160 |
2 | 131 | 16.150 |
Price($) | Vol. | No. |
---|---|---|
16.200 | 830 | 1 |
16.210 | 310 | 1 |
16.220 | 1000 | 1 |
16.230 | 1000 | 1 |
16.240 | 1054 | 2 |
Last trade - 16.10pm 09/09/2024 (20 minute delay) ? |
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