Hi ewl, unfortunately, I did not hear about FMG until they where...

Hi ewl, unfortunately, I did not hear about FMG until they where at 28c. Over the following week that it took me to do my homework, the price had moved to 37.5c, where I bought my first parcell. Have been buying at spaced levels all the way up, according to my strategy ever since.

I had already been with CSM for a couple of years and had the oportunity to talk to Michael K about FMG, when CSM was a sharefolder. I asked him at the time (at the beginning of this year I think) what he thought the chances of FMG getting the rail link off the ground where. He didn't say much but with a wry smile said "50/50". That may sound like "fence sitting" to many but if you have had the opportunity to see how he is at AGMs etc, then most times he seems overly positive but the numbers have always proved him to be conservative at the time. So I figured that Twiggy was going to give it a good nudge and would have help from CSM and others who already had a vested interest in seeing the rail network proceed. I also figured that CSMs strong ties to China would not hurt.

Next was the WA Government backing of the proposal to put the rail network in, knowing that the extra revenue for WA through increased Iron Ore Exports, would be nice to have.

You have to go to seminars and AGMs etc and hear about what is happenning in China and India in particular to really get a feel for just how strong the demand for steel materials is and how long that demand is going to exist for, regardless of whether the US craps out or not. That is at least 3-5 years or more. It is no surprise that China is prepared to back FMG in what they are trying to do. They are going to be paying so much for Iron Ore that their nose is going to bleed so much that their ass will hurt!

The only thing that could farq this up is if FMG don't actually have any Iron Ore. Now they DO have the Iron Ore so now all you have to do is get out the calculator and do the sums. FMG have less than 200 Million shares on issue, fully diluted. I would say that well over half of that stock is now tied up by long term holders, with Twiggy holding 60% after dilution I believe.