shorting fmg, page-26

In broad terms I agree farmboy, over the short to medium term these effects move prices above and below fair value (whatever that is). I think most areas of disagreement on this stock relate to judging where we are in the cycle you identified and the importance or not of Greece. That is why shorter may make money as well as longs, but shorters had better get their timing right!

In my view, over the long term, these effects become less significant as they are cycles on a longer term movement driven by fundamentals. If Greece gets sorted a bit this week (personally I think there are many years of angony for Greece), there are key datapoints coming. The interim results for BHP (wed), RIO (thur) and FMG (next wed).

We will soon know but these results will help set the real fair value. Big week for both sides of the trade.