Hi Karasko, I agree with alleyronin about this
It is balance sheet risk here which is irrelevant to FMG's income status.
As FMG's book value are valued in AUDs, if AUD tanks, FMG's debt ratio will increase dramatically and the company will face a series of institute downgrades.
To put this simple, say someone have net income about USD100 per year and a homeloan about USD1000 for the house while the house worth AUD1000 at year 1 AUD:USD=1:1
At year 2 if AUD:USD increased to 2:1
then the debt will be USD900 which is AUD1800, and if the house worth still AUD1000 the net debt will be AUD800. If at this point this guy lost his income then he can not simply sell the house to pay off the debt.
If this case applies to a stock, the price will be halved. However I don't think it will happen though.
Hi Karasko, I agree with alleyronin about thisIt is balance...
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Last
$25.66 |
Change
0.090(0.35%) |
Mkt cap ! $79.00B | |||
| Open | High | Low | Value | Volume |
| $25.72 | $25.86 | $25.63 | $77.37M | 3.012M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 11417 | $25.65 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.70 | 2000 | 1 |
View Market Depth
| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$25.72 |
Change
0.090 ( 0.55 %) |
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| Open | High | Low | Volume | ||
| $25.72 | $25.86 | $25.64 | 785342 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| FMG (ASX) Chart |