I'm mystified as to why some people out there think that FMG's decline is due to short sellers and that really FMG is on a non stop growth path.
Why?
FMG is in a classic squeeze. They're producing something that is in oversupply, whose price is falling (naturally) and will likely fall at least another 20%. They seem to be committed to continuing with their capex prog increasing their own capacity by 30% at the same time as all their competitors. They have to build/increase their own rail access to ship their own product having been ignored by Gina to share facilities with the help of some fanancial cuddle. And finally, having had to renegotiate their debt at the 11th hour during the "good" times 18 months ago, they're going to have to do it again just at the time when their business is going south. FMG may eventually become a takeover target by one of the majors, but not until the SP accurately reflects its shortcomings, and certainly not for the next 4-5 years if ever...depending on how much iron ore China starts producing locally (in China.) There is a view that FMG (and its competitors) will all remain very profitable because their costs are in the $30-40/mt range. They may well, but the sp will reflect that. The present sp of +/- $3.50 already reflects the present and future iron ore prices.
- Forums
- ASX - By Stock
- FMG
- terminal decline?
terminal decline?
-
- There are more pages in this discussion • 48 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FMG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$19.76 |
Change
-0.220(1.10%) |
Mkt cap ! $60.84B |
Open | High | Low | Value | Volume |
$19.66 | $19.80 | $19.20 | $191.1M | 9.763M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 4673 | $19.73 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$19.76 | 31740 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1000 | 19.730 |
1 | 1000 | 19.700 |
1 | 3000 | 19.680 |
2 | 1552 | 19.650 |
1 | 5000 | 19.630 |
Price($) | Vol. | No. |
---|---|---|
19.800 | 2133 | 2 |
19.830 | 750 | 2 |
19.850 | 150 | 1 |
19.870 | 2200 | 2 |
19.880 | 3834 | 3 |
Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
Featured News
NEWS
Antler Copper Project hits major permitting milestone – air quality permit advances to final review
FMG (ASX) Chart |