Frankie
I missed out on that move last night.
ended up having a very bad in all even after i made a couple of good trades towards the end.
Next week appears to set for more volatility, Shorters will be out in their thousands come Monday, including me. FMG does look like it's going to get hit hard by the shorters next week as this is still a paper bound co. with high leverage.
this is what Comsec say about FMG!
Company Strategy
FMG strategy is to optimise its projects and maximise shareholder value. Activity is focused on two key areas: constructing a Pilbara to Port Hedland railway and exploring for iron ore on its tenements within the Pilbara of WA. FMG is focused on designing, financing and construction of rail and port facilities to support the development and sale of the Pilbaras stranded iron ore bodies. Its philosophy is an open third party access regime for other mining users, as espoused by the Government. First iron ore was shipped in May 2008. FMG is the ultimate bull market stock but the credit crisis sees global growth cooling. Is it now a case of straw hats in winter or abandon ship? Its hard to believe FMG has come this far, but you have to hand it to Forrest. He is highly motivated and despite many sceptics, he did it again. Exactly what has been built though is an open question. Its typically Forrest size - huge - but is this a genuine cracking of BHPs and RIOs Pilbara iron ore duopoly? Proof wont come for a year or 2 once production rates, operating costs and maintenance capital costs stabilise.So where do we sit on FMG? It could be a great idea. If it works upside is huge but now is not the time to buy. We are not saying FMG will fail, but need to wait until the concept is proven and risk subsides before factoring in substantial potential upside. Upside is sufficiently large for investors to wait yet still be able to participate. If FMG works, decades of expansions may lie ahead but some key questions need to be answered first. Certainty will only come with time.
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