FYI HC members dow jones comment:[Dow Jones] Fortescue (FMG.AU)...

FYI HC members dow jones comment:
[Dow Jones] Fortescue (FMG.AU) increasingly on track for expansion, according to senior institutional trader. Says FMG's planned A$450M converting preference shares and A$275M in prepayment commitments from five Chinese steel mills will allow FMG to lock in contractors and order long-lead-time items to enable longer-term growth to 100 mtpa-150 mtpa from current 55 mtpa. FMG has received A$140M subscription application for preference shares. "I think we can see FMG rally as it shows they are not going to sit here at 55 mtpa," says trader. "A lot of the low FMG valuations assume they never get their long-term stated production growth targets of 100 mtpa and more." Adds, hedge funds had been shorting FMG because they thought A$1B converting preference offer was looming and that it would be to institutions, rather than large FMG shareholders like Harbinger. FMG up 2.8% at A$7.61, hits A$7.62. Resistance A$7.86. Support A$7.06. (DWR)