More questions than I get from my accountant at the end of the year. Is it the right time to buy an iron ore company? Probably not. I just find this world-leaking company staggeringly cheap and probably why twiggy purchased $240m shares on the same day I did..not that amount though. You see on that day it was paying 23% pa gross dividend and can you believe you can buy it cheaper today. I rate it the cheapest stock on the ASX High margins, $3b cash in the bank excellent dividend if that’s what you’re after, but no I wouldn’t buy it because the analysts are saying we will have a depression. God I thought it was just a recession looming. Who knows? If it’s any help I value it at $41.98 AUS (bit of safety margin for you) and consider the inflation adjusted iron ore price to be $49.58. Looks like we are above that and increasing everyday but that might have something to do with Vale. Who knows?
A bit of tongue cheek. I know.
FMG Price at posting:
$9.65 Sentiment: None Disclosure: Held
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