If you look at how a stock like FMG is priced, it is in part due to earnings expectations 10 years from now, or what you would call "operations" in 10 years time.
Whilst this news does not effect operations "today" it may impact FMG's expected "operations" in 10 years time and that's where the valuation impact comes in.
Said differently, you would not offer a loan to a suicide bomber because you wouldn't expect the person to be around in 5 years time to pay you back the loan. Whilst the person is is alive and "operational" today, you need to think about what that picture looks like in the future as well. It's the same logic.
Iron ore price, page-44159
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Last
$16.24 |
Change
0.120(0.74%) |
Mkt cap ! $50.09B | |||
| Open | High | Low | Value | Volume |
| $15.98 | $16.34 | $15.91 | $110.6M | 6.838M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 7778 | $16.24 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $16.25 | 2863 | 14 |
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| Last trade - 15.52pm 09/09/2024 (20 minute delay) ? |
| FMG (ASX) Chart |