technical analysis, page-11

well thats why you will hold this stock until its worth nothing.

FMG was in the right place at the right time. FMS doesnt have the same resource, capital and debt markets are closed and you still think FMS will be the next FMG.

thats why you will never make any serious money, the art of investing is about getting out when the market starts to turn. FMS will struggle no matter what they find because BHP & RIO have better quality ore and they are cutting production by 10%.

so if the lower cost and better quality producers are cutting back production what makes you think anyone will want to fund a bunch of diamond explorers chasing the hot commodity?

im glad you brought up AXO because its not just the iron ore its about the vanadium that the chinese steel mills get for free. the chinese want AXO to produce so they can get the free kick from the vanadium, ie they end up getting the iron ore for free.

so you need to look at each projects competitive advantage, what advantage does FMS have over FMG, BHP or RIO? why would a steel mill want to take their ore above BHP, RIO or FMG? if there were serious investors out there that were interested dont you think that by now they would be investing in FMS?

whatever iron ore FMS has its worth something, however the market will not provide this with any value until a shortage in iron ore appears again or the price increases and in this environment FMS will struggle to get funding. its not about the ore its about survival.

the best thing FMS could do right now would be to conserve cash and wait for the next cycle.

maybe in 12m time when you can buy it for less than $0.01 again it will be a reasonable punt.