Iron ore price, page-33386

The answer is simple, all one has to do is refer to investing greats such as Warren Buffet or Peter Lynch.

"In the short term the share market is a voting machine, but in the long term it is a weighing machine".

Basically what this means is that the performance/fundamentals of a company need not necessarily align with the stockprice in the short term. But in the long term, the stockprice will always allign with the fundamentals, as history as shown.

The above phenomena (i.e. when fundamentals and the stockprice do not allign) cannot be explained by a single answer, there are many reasons why holders may wish to sell in the short term. The above phenomena is also what creates buying oportunities, that is when the SP is undervalued compated to the fundamanetals of a company. It is the reason people are able to make money on the stockmarket (if the stock was always fairly valued, then there would be no buying opportunities). I beleive FMG is currently sitting in this position (i.e. the SP of FMG is undervalued compared to it's intrinsic fundamentals). Some may view this as a buying opportunity.

My take anyways...