#1 Acquirer's Multiple in the ASX200, page-15

@Fozza

This is the reason I don't have a Phd! Thanks for that intimate post on FA, something I don't try to indulge because it is beyond my understanding. It is actually struggle street just trying to understand the metrics you use which are not talked about in the popular media or maybe I'm being the majority sheeple?

My logic comes from Mark Douglas, the chart to a certain extent reflects the thousands of analyst recommendations but once in a while FA lags the market. My view of TA on FMG is actually bearish but I am going against my logical bias this time because I see the current sell off factoring ahead the Chinese environmental policy shift. So buying while the market is factoring this event is lower risk than to chase as the market gets comfortable the worse is over. In addition, have you noticed that engineering listed entities post IOP boom, unloved many years, have now come back into focus as they reverse off those doom days. From the 'blue chip' to the more marginal entities, it seems this is a sector rotation reinforcing the resource sectors.

My problem is timing which I didn't quite get 'right' so if the divergence with its peers continue to expand, I'll most likely contemplate averaging down but resisting as the selloff is not deep enough. IO will continue to be an important commodity to China who are well aware that they cannot just keep building domestically hoping the the retail/commercial infrastructure can fill as fast as they are being built. The 'one belt' is where I think they will sustain their GDP growth in the fiscal sense so this is a longer term trend rather than the explosive EV/Li space we are currently experiencing.

Thanks and keep posting those leading edge research.