ubs says sell fmg buy gbg, page-9

Any broker advice from FMG to GBG is not comparing the companies vs. each other it is simply saying FMG is no longer a buy for what ever reason. ie. reached our target.

GBG is a buy becuase it has many important & probably positive info coming that is likely to raise the sp including mining approval. From this then expect the loan to be approved not before.

Major do you really beleive what you said or did u drop your biscuit in your coffee.

Congrats to you if you picked the raising would not be equity debt but shares. However that has now happened but hasn't hindered the share it has made it stronger. Sure more of the pie goes to Ansteel but at least there is some pie to be had for all of us.

We have been told frequently that the IO is to be sold at market rates + 10% i think or something similar either way they can't sell it to them selves at what ever price they want to run the company into the ground. If that turns about to be incorrect then surely the directors of this company would be in huge trouble for misleading investors. Also in a poor demand climate eg. a chinese shut down for manipulation we would still sell every piece of IO we have unlike other coy's who would have a major problem & excess stock. Sure that could send the price of IO south & while a posability in the current political climate I personally don't think it will happen.

I also beleive that instead of Ansteel running GBG into the ground It will actually be Ansteel & China's vehecle to buy what ever it wants in Australia. The initial indications are that GBG will be used to get around the Chinese fear factor as GBG will still be an Australian comapny just with major chinese investment. I also beleive the move from G Jones to the current Guy will help this relationship build which has already been indicated. I don't know if this a blight on G Jones but the shift is occuring as GJ is about to take his time off.

The gov has basically indicated it will give the go ahead & then the chinese will give up the cash once there are no more hurdles.

GBG is looking bullsih on these things alone hence the buy rating from a broker -