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$22.66 fortescue ltd

POWER!!!! Fortescue Future Industries, page-3738

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Ferginator

32 Posts.

4

18/06/24

20:44

Post #: 74377853
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Originally posted by Ferginator: ↑

Hello Tony

The breakeven point is calculated as annual Fixed Costs / Gross Margin %. Right now GM% is very low and I suspect COGS includes a tonne of costs that are not variable in nature. For me there are too many unknown variables to try and figure that out for now. Although we could have a guess by splitting the obviously too high COGS figure into fixed and variable components but that would be guessing. Another other option is to assume a GM% of x and divide forecast fixed costs $ into that. Then based on a % of known deferred revenues + ongoing revenues + new contracts we can assess the likelihood of FZ being profitable or not. However, I am guessing they have a 'goldilocks' or 'honeymoon' period where they can write their own cheques, within reason, to support new research initiatives. That will be ok for Mgmt for a while but at some point it will need to pay its own way. I reckon they have 2 years to be profitable but that is 100% speculation by me.

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Whoops......Another other option is to assume a GM% of x and divide forecast fixed costs $ by that. Not into.

FMG Price at posting: $21.79 Sentiment: Hold Disclosure: Held
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Last $22.66		Change 0.740(3.38%)		Mkt cap ! $67.49B

Open	High	Low	Value	Volume
$22.38	$22.73	$22.26	$62.62M	2.779M

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No.	Vol.	Price($)
18	3610	$22.66

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Price($)	Vol.	No.
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13	3730	22.640
13	6890	22.630
14	7337	22.620
11	4377	22.610
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22.660	9804	12
22.670	15205	17
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22.690	4513	11
22.700	7781	12

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