Trent2684 posted the perfect example as to why analysts opinions are nonsense today.
Analysts take a cyclical approach (which basically means they try to price in what the market already know) whereas if you want to be particularly successful you need to be counter-cyclical around the right time (or have a strategy that achieves the same).
Some of the key points to take from FMG analyst research is:
- FMG's balance sheet is in good order.
- They have a bit of a cash flow crunch ahead of them (after dividends) IF IO prices drop as "predicted" (but that expenditure is somewhat discretionary).
- IF IO prices drop as "predicted" FMG may bit a bit over priced here (DCF, not 12 month target prices).
- HOWEVER, analysts factor in no valuation for Fortescue Future Industries (could be a meaningful error there).
The rest is total crap, especially their ratings and 12 month target prices.
I often read analyst research, but I am oblivious to their opinion and target prices.
My personal take on their research is I accept FMG is a little risky from a valuation perspective, but I "bet" that their IO target prices are just too pessamistic (based on my experience of them never achieving the same historically).
- Forums
- ASX - By Stock
- FMG
- Iron ore price
Iron ore price, page-52698
-
- There are more pages in this discussion • 204 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FMG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$21.76 |
Change
-0.065(0.30%) |
Mkt cap ! $67.89B |
Open | High | Low | Value | Volume |
$22.18 | $22.18 | $21.74 | $55.68M | 2.531M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
20 | 13241 | $21.75 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$21.76 | 4279 | 26 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
22 | 12560 | 21.750 |
19 | 22196 | 21.740 |
14 | 16178 | 21.730 |
11 | 14202 | 21.720 |
13 | 6816 | 21.710 |
Price($) | Vol. | No. |
---|---|---|
21.760 | 4663 | 28 |
21.770 | 8672 | 26 |
21.780 | 6210 | 19 |
21.790 | 5417 | 18 |
21.800 | 10761 | 12 |
Last trade - 13.00pm 09/07/2024 (20 minute delay) ? |
Featured News
FMG (ASX) Chart |