happy investor, page-37

The commodities sector is of course in the doldrums and stocks are being rerated accordingly, when Iron Ore drops by 60% since its 2014 high then those producing stocks of course get rerated down, especially those like FMG with huge debt and the likes of AGO who aren't even at break-even anymore and are producing at a loss. Same goes for oilers where it too has fallen by over 50% since 2014 highs, fixed costs help amplify any of these rerates we see in such companies and coal producers are shutting down all over the place too.

1PG's model does not get affected by such market fluctuations, it's simply a revenue's coming in play, if revenue shows an increase year on year the market will try and look forward with its share price until it would seem revenues are tapering out from an incline. Now, and because it is a rather new company, we haven't seen true revenues come through as yet but we know they are coming. The referral engine has just been released to market and we know there are many more companies going through legal as we speak to start dealing with 1PG, once landed we then go through a 3-5 month 1st stage scenario and then on to annual contracts, yes this is early stage and some are willing to get in early and others want to wait for earnings, each to their own!

To talk about "if" the market turns is not something that worries me very much until there is evidence that this is happening, people have been living in fear of market collapses since the GFC which has turned everyone into jumpy/twitchy traders, yet the market has continued to rise and leave many of these people behind over the years. Will there be another correction, of course there will, but when will that happen nobody can say because of the low interest rate policies and money printing happening around the world, so I will not live in fear every day.