What were you basing the valuation on?
There is over $3 of assets per share and those assets are generating about a 25% - 30% return, by the end of the year it will probably be about $4 of assets per share.
Now at the moment cash earns about 2% or 3%, So assets that earn 25% - 30% are worth a lot more than their book value.
Even if you paid $7, for an FMG share today you are effectively paying $7 for $3.50 of assets that earn 25%, so their earning would be about 12.5% based your purchase price, which is 4 times what you would get with cash.
Even the last 12months dividend alone (ignoring retained earnings) is double what you get in a cash investment.
So I can't see how it is over valued at $5.50 as you claimed, this company is building equity every day, and returning a bunch of it to shareholders through dividends, and repaying debt with the rest saving interest and building equity.
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Last
$17.97 |
Change
-0.360(1.96%) |
Mkt cap ! $55.32B |
Open | High | Low | Value | Volume |
$18.10 | $18.28 | $17.97 | $250.7M | 13.82M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 104054 | $17.96 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$18.07 | 4370 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 3800 | 17.960 |
11 | 1487 | 17.950 |
3 | 6628 | 17.930 |
1 | 1500 | 17.920 |
28 | 7848 | 17.900 |
Price($) | Vol. | No. |
---|---|---|
18.070 | 4370 | 1 |
18.080 | 270 | 1 |
18.140 | 1700 | 2 |
18.150 | 100 | 1 |
18.160 | 100 | 1 |
Last trade - 16.10pm 23/08/2024 (20 minute delay) ? |
FMG (ASX) Chart |
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