Iron ore price, page-3185

Some other points:

Fmg have huge profits, huge cashflow, low debt, massive tendements with unknown potential for other resources or other uses, increadible assets and infrastructure.

They have an unbelievable management team and this will stay constant. On the Power announcement, note that Power was excellent for the purpose of adding to efficiencies, reducing costs, paying down debt to their core business. However they are probably going to diversify and expand and require someone with a more diverse skill set who is not a one trick pony- no offence to Power. Someone who can think outside the square, implement ideas and bring something new commodity,service or product to the market. I.e from sead phase to full maturation.

I suspect that FMG will maintain iron ore operations as their core business and don't see this changing in the near term, however they have the resources/skills to diversify into our commodities- gold, copper, energy and other opportunities.

The market were very short sighted with the Power announcement and should have received this favourably however they panicked. In time the market will be priced wrong and shareholders will see strong growth on their investments.

The difference between FMG and Rio and BHP is the following. The latter made very poor decisions in respect to timing when acquiring other businesses who extracted these resources. They bought at the peak of the market where there was limited value or in many instances no value at all. FMG have timed their entry points at lot better than these players. I guess they couldn't afford to be complacent with their investments. BHP/RIO had egos and assumed that everything they bought or acquired would turn to gold.

Iron ore has plenty of upside, this will benefit FMG, however FMG are planning their next strategic move to bolster their iron ore business returns.

Another note, the rich get richer- AF is an extremely wealth man with a large chunk of his wealth in FMG- he is putting his money where his wealth is- the question is will AF be richer or poorer in 2/3 years from now. I think richer, if you continue to try and short FMG you are betting against and man and company which has a lot more resources than you and has a much better understanding of the business operations and future opportunities.

ST this is storm in a teacup. In a couple of years, these prices will be seen as bargain prices.