Frustrating that’s what it is. Comes down faster than it moves up. You buy stocks for either income (dividends) or capital growth. Neither of these two elements can be attributed to the company. Again just look at FMGs chart for the past 6 -12 months. It has given shareholders both growth and dividends.
It had nearly $450M in cash in 2020 and it squandered it. Now as it builds its war chest a second time we expect them to use it responsibly. If they can’t buy a quality company at a reasonable price, just distribute all profits to the shareholders.
I will wait for the quarterly. And see if they have achieved Miningnuts forecasts and see the markets reaction to their guidance and performance. Then I will make a decision on whether to hold it longer.
The companys SP should be much much higher at these iron ore prices. It hasn’t moved up during the recent run up in iron ore price. So what concerns me if the iron ore price comes off slightly what does that do to the SP?
MGX Price at posting:
55.0¢ Sentiment: Buy Disclosure: Held
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