FMG is way overvalued. The dividend appears to disguise the level of debt by creating a distraction and illusion.
The P/e ratio is often used justify company value and is accepted as a measure of value. The problem with FMG they are on a cost cutting exercise which appears to be a measure to stay solvent. Cost cutting for the purpose of solvency is a dangerous game.
Cost cutting from $15.80 to $28.48 is quite a drop and too good to be true. What have they cut?
Cost cutting to this level in opinion doesn't appear credible or very creative accounting.
$US15.80 per wet metric tonne, compared to $US28.48 a tonne reported a year ago.
http://www.abc.net.au/news/2016-01-28/fortescue-cuts-costs-as-iron-ore-prices-fall/7120390
The current iron ore price and oil price is a dead cat bounce and there will be a lot more pain.
How will they survive when Iron ore prices fall down to $15 ton.
FMG is way overvalued. The dividend appears to disguise the...
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Last
$21.41 |
Change
-0.260(1.20%) |
Mkt cap ! $65.92B | |||
| Open | High | Low | Value | Volume |
| $21.52 | $21.67 | $21.30 | $150.5M | 7.000M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 93 | $21.40 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $21.41 | 12657 | 3 |
View Market Depth
| Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
| FMG (ASX) Chart |