trading at a pe of 2.5 and an 9% yeild, page-8

Hi Onshow,

I definitely agree with your points about debt (FMG) and you probably realise I have no position in this stock. Looking to probably change that. Mining services is definitely an interesting one because it is challenging out there and probably will get worse if commodities demand slows. So only the strongest will survive. The debt levels here are definitely manageable and could easily be paid down like you say in 1 - 2 years. One concern for me is with such a tightly held company by management, they are free to make decisions without consideration of shareholders (probably not the case here as they are paying dividends). Another is that fund managers would most likely steer clear given their inability to exercise any control over management. So unlikely to achieve fair value.