Yep it was my super, and the risk was worth it. The $2 psychological support level was so strong in my mind, that I felt confident that many other investors (including both traders and long term holders) would start playing their hands as well. I hadn't ruled out making it a long term hold (at the time I had not thoroughly researched the stock or the iron ore industry). And I certainly didn't expect the rally to come as quickly as it did. And I would have been burnt if FMG had made any announcement about cutting or eliminating dividends. But having done some research now, I am more convinced than ever that the risk increases exponentially as the stock rises above the $2 psychological support level. And the dividend question is something which investors really need to factor into their decision making at this point. At the end of the day, the banks rank ahead of security holders. Even if FMG does not go bust (and I'm not saying it will), the question remains who will get the lion's share of FMG's slim profit margin--- investors? or the banks?
FMG Price at posting:
$2.50 Sentiment: Sell Disclosure: Not Held
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