FMG has a plenty of further potential downside. Share holders...

FMG has a plenty of further potential downside. Share holders need to deal with this fact. The world going forward is not the same as it was 12 months ago. With global growth slowing dramatically (potentially going into the negative), FMG has what, 2 quarters at best of past earnings to weather the financial hazards that lay ahead. It has huge amounts of debt and the growth strategy for this company was done on very different forecasts and a completely different economic environment.

This company, given where it is on the time line of a miner, is heavily reliant on readily available credit and strong iron ore prices. Both are no longer a reality. What is going to push the sp higher??? Earnings forecasts for '09, '10 and beyond are contracting due to the slow down (collapse) of the world economy. Therefore I ask, what is a (the) catalyst(s) for this sp to rise? The only reason I see is that people may think it is oversold? Find me a stock that isnt and there are companies with much, much stronger balance sheets than this one which are also cheap.

You mention BHP in the same sentence, BHP earns more money in a week than FMG has earned in its entirety. Sure it does have large reserves, but if iron ore demand declines (which it will as countries simply try and stay afloat), those reserves become less viable and less valuable. People say, oh but this stock used to be over $13... So what!!! So did CNP.... Heck Onetel was a $20 stock once.

Environments change and companies not in an adequate financial positions will disappear for ever out the back door. Just look at every commodity boom and subsequent bust before this one.

This commodities boom is over for the at least the time being and companies need to be able to make it through the hard times. FMG has yet to prove itself in this scenario and that leaves many questions unanswered in my mind (and the markets judging by the drastic fall in the sp).

I hope things turn around as I have money in this market also, but Im using the across the board sell off to switch out of questionable companies into sound companies. Both are cheap. You might be selling a FMG at a low, but you can buy a BHP at a low also. One is certain to recover, the other... ???