Iron ore price, page-53147

a positive spin for something different, this article from The Mercury:


Buy, Hold and Sell: It’s just twigged – Fortescue shares look a relative bargain
Michael **le at Fairmont Equities sees the recent pullback in Fortescue as another buying opportunity.

IT'S A BUY
Fortescue (ASX:FMG)
We see the recent pullback in FMG shares as another buying opportunity, Michael **le reckons.

"Current levels are a buying opportunity and we expect FMG to rally back up towards $29.00 before consolidating again," he told *.

The declining share prices of Australia's major iron ore diggers reflects some of the structural challenges facing the global iron ore sector, while doubts around China's economic recovery and broader global economic uncertainty has undermined investor sentiment.

And they've been pulling back all year:

Selling in FMG accelerated into June, when an institutional investor triggered a sell-off, by dumping a stonkingly large bag of Fortescue worth some $1.1 billion in a searing block trade at significant 6% discount from FMG's previous closing price of 22.980, as per reuters.

Another move out of last week which usually chimes well with fundies is when a profitable company makes pre-emptive moves on the bottom line, in FMG's case, axing 700 jobs, to stay “lean, impactful and agile” - in the words of founder Andrew ‘Twiggy’ Forrest’

In a statement to the ASX last week, Fortescue said it “must continually evolve to ensure maximum value for shareholders."

Fairmont says circa 700 jobs will go across FMG's global operations, with a redundancy program likely to be finalised by the end of this month.

"Iron ore prices have fallen this year and with it the price of FMG," Michael told *.

But the Fortescue share price is usually on the coal face of major iron ore moves and has always proven as resilient as the commodity it sells, he says.

"Over the years we have seen that FMG can often be oversold on the back of an iron ore pullback, and the share price charts are once again displaying signs that FMG shares should bounce from oversold levels."