Hey Ugley, all your questions are currently in play with our major holder in the US in regards to Fortescue.
“Billionaire New York investor Phil Falcone has inadvertently triggered a wave of short selling in Fortescue Metals Group after the custodian looking after some of his 15.6 per cent stake in the $22.3 billion iron ore miner lent the stock to other hedge funds. The stock is thought to have been picked up by numerous hedge funds punting on sharp falls in Fortescue’s share price.”
Should the broker be handing out stock without owner’s permission, NO. This is where the term BORROW is been loosely used and how that plays out legally I don’t know, Seems wrong in my book, I’m still sitting on the fence with this whole Phil Falcone event, 70% true, 30% media spin…hard to be 100% sure. And while every FMG holder knows we have gone down due to market conditions, the above event accelerated the slide IMO. Recent announcements will put a stop to games for the moment and we’ll see FMG recover to a fair value next week.
Looking forward to 80mta in 2009. http://www.asx.com.au/asxpdf/20080919/pdf/31cdvb1ftzyg2g.pdf
Frank
FMG Price at posting:
$5.80 Sentiment: Buy Disclosure: Held
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