greyhound, the sell-off is probs due to the weak lead from Wall St overnight. The big funds, ie. the short sellers of late, were concerned about a capital raising, which is too costly when compared with debt financing. Equity forces a higher required rate of return vs debt. Debt finance is cheaper for a profitable business, like FMG, since it has a solid cash flow stream and interest payments can be used to lower your taxable profit.
imo the fact that the offering was oversubscribed is great news, and with a positive lead from the US we will see this baby back above $5 in no time.
Ann: Fortescue Debt Offering , page-12
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Last
$22.10 |
Change
0.100(0.45%) |
Mkt cap ! $68.04B | |||
| Open | High | Low | Value | Volume |
| $21.99 | $22.22 | $21.87 | $84.79M | 3.834M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 9803 | $22.09 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $22.11 | 10620 | 3 |
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| Last trade - 16.10pm 12/07/2024 (20 minute delay) ? |
| FMG (ASX) Chart |