As I said, this is not a FMG vs shorter issue. Nobody says they have certainty of what happens next. I don't. Between teh choices of shorting the stock and buying the stock, I would be more inclined to buy.
What determines FMG's fate is the IO spot price NOT what the media writes (although they are still trying. When price hits $100 / tonne, even Alan Kohler will stop having a go at FMG as it will be a waste of time).
China is seriously behind the curve. Hu JinTao doesn't mince words (see below). Pump priming (steel intensive infrastruture projects) will be accelerated. Suggest you watch the Niall Ferguson doco: China - Triumph and Turmoil.
China’s economic expansion faces “notable downward pressure,” President Hu Jintao said Sept. 8. Factory output rose at the slowest pace in three years in August, National Bureau of Statistics figures showed yesterday. Imports into the country unexpectedly fell, the customs bureau said today.
FMG Price at posting:
$3.44 Sentiment: Buy Disclosure: Held
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