FMG Technical Analysis, page-6191

Just posted up on LiveWire

Fortescue

Metals Group (ASX:FMG), trailing yield 7.43%

James Marlay: The unconventional part of the market for dividends, but they're starting to build up a track record. Fortescue Metals, spewing out cash. Buy, hold, or a sell?

Michael O'Neill (SELL): It's a sell for us. Fortescue as a pure-play iron ore producer has benefited more than the other large listed miners from the growth in the iron ore price from $100 per tonne at the start of the financial year to $160 per tonne. We look at commodity stocks and we believe they follow commodity prices. So when that supply-demand imbalance in the market corrects, not only are your longer-term dividend prospects impaired but also your capital value is at significant risk.

James Marlay: That's the main argument against owning miners for dividends. Peter, is Fortescue a buy, hold, or a sell?

Peter Gardner (BUY): It's a buy for us. So we agree with what Michael was saying, but we just think the cycle is going to take a lot longer to play out than people expect. And in terms of what the market's pricing, the market is not pricing iron ore prices to stay up $150 a tonne. Everyone knows they're going to come back, it's just a matter of when, and we think it'll take longer. And so you've got to take advantage of those dividends and good capital returns while they're there.