what is happening with fmg, page-61

Bart

I agree with you except BHP gave for one of its reasons why it dropped the take over bid for Rio as its debt level.

FMG has a huge debt level although a case could be mounted that the debt that fmg has could be managed by a BHP with its assets and market cap etc.

Trouble is that just at the moment, debt is a dirty word with the market marking down stocks that have huge exposure to debt, such as FMG.

This is not to say that a take over will not occur. I believe that in time, a takeover will occur imo but not at the current s/p.

At $1 fmg will be very vunerable imo to a take over.

Alternatively, any suiter waiting in the wings may believe that the s/p has even further to drop, thus wait for the right time to pounce.

In any event, there must be some very nervous people out there who bought in at level much higher than the current share price, hoping against hope that the share price recovers enough so as they don't loose their shirt should a take over occur.

I have made some healthy profits trading fmg in the past. I have NEVER once lost any cash on any position that I have taken in the past with fmg.

As with any stock, half the job is timing. Knowing when to buy {go long} and when to exit that position is half the battle and conversly, knowing when to short and exit that position is half the battle.

I will admit that my biggest regret was selling fmg at around $13 after buying in through the low $12 mark prior to the split.

Were I to have continued to hold, at $13 after the split I would have been a millionaire many times over - but that was not to be. I also took long positions when fmg started its retrace from $13 on short rebounds all the way to $3.

I was fortunate/astute enough to exit the position in time to make the profit and wait for my next entry point.

It has been a great ride. I had similar fun with Zinifex last year.

Time will tell of course with FMG but I do hope that in time, the entire situation does turn around but until then, I do see, imo some future downside in the share price.

THE ABOVE IS NOT FINANCIAL ADVICE AND IS MY OPINION ONLY