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$19.27 fortescue ltd

Iron ore price, page-50114

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Raki

2,979 Posts.

844

20/07/23

14:21

Post #: 68889303
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Originally posted by y0w4ll3t: ↑

I agree with the mispriced terminal assumption. I don't understand where economists are thinking the future will require less steel.

The lower PEs in my opinion are often tied to DCF valuations that are using wild assumptions of iron ore price long term. Plenty of articles out there on it and to me it looks highly selective in the way information is presented. Look at the below:

Makes it look like the expectation is justified based on some sort of loose analysis of the graph. Why start the graph at 2017 though. Why not take more data?

Does that look like a long run average of 70 to you? Unfortunately this thinking is locked into psyche so that the valuations adjust very slowly. In the meantime holding the iron ore miners pays out the holders in cash while the doubters stay on the sidelines and point to some sort of imaginary long term price. Works for me. FMG has the additional benefit of being relatively volatile so can boost the already good yield selling options.

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This is an easy trading opportunity if you play the game well, somebody else is doing the hard work, play the game according

FMG Price at posting: $22.58 Sentiment: Buy Disclosure: Held
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(20min delay)
Last $19.27		Change -1.080(5.31%)		Mkt cap ! $59.33B

Open	High	Low	Value	Volume
$20.29	$20.61	$18.69	$319.2M	16.25M

Buyers (Bids)

No.	Vol.	Price($)
2	35024	$19.27

Sellers (Offers)

Price($)	Vol.	No.
$19.28	30769	3

View Market Depth

No.	Vol.	Price($)
2	35024	19.270
1	500	19.260
4	4197	19.250
1	1000	19.240
1	14199	19.230

Price($)	Vol.	No.
19.280	30769	3
19.290	7734	2
19.300	1532	2
19.310	23167	2
19.320	18293	1

Last trade - 16.10pm 08/10/2024 (20 minute delay)

FMG (ASX) Chart