Hi FarlapI agree with you it might take some news to get FMG's...

Hi Farlap

I agree with you it might take some news to get FMG's SP breaking through the current trading band again, or else at the very least a continuation of the general market rally.

Interestingly, I have done a comparison of the SP growth of several IO companies since both the November 20th and March 9th market lows, and FMG has seen the least upside so far of the IO companies I've compared. See below 2 charts both comparing FMG with MMX, MGX and GBG by setting their prices to 100 on each of the respective market low dates and comparing the prices to those days.





In both cases FMG shows the least growth of the 4 companies. Some could argue that that's because of FMG's operational performance has stalled somewhat, and/or their cash flow situation. Given that the latter has now been improved with the Hunan Valin capital injection I see FMG's financial outlook as more secure. A lot rests also on FMG improving their operational performance to match their stated projections, and news such as teh outcome of Twiggy's court case.

What this means to me is that there are several factors that have held FMG's price back in recent months despite the general market upturn, from which the other IO companies have benefited, and given their now stronger balance sheet it perhaps only requires some key news to release the SP to the upside to "catch up" with the growth some of the other IO companies have seen recently.

Anyway, we will see. Cheers, Sharks.