why fortescue is falling, page-4

This is more garbage written by a dealer hyping his position and client positions and warrants ASX investigation.

Be very very careful of this guy, I believe he probably owns call options that are now deep in the toilet if he rolled them over the last month, which is likely and he needs the price to go higher. He never discloses his own positions on his own account.

ASIC needs to look at him. Their firm was being looked at for insider trading in Network Ten Shares. The outcome has not been determined yet.

He is NOT an Analyst. He is a DEALER and dealers should shut their big mouths and not pretend to be analysts or be writing research or giving own valuation. He has no analyst qualifications no valuation model for the market, no assumptions, no scenarios and importantly no thoughtful constructed and publishable research that is suited for the investment communities and retail investors.

He is more like a journalist who has stock views or any ordinary poster on this board, and he violates every level of market compliance by writing these continued hypes. Take his advice on your peril.

The market cap of FMG at $1 a share is still aprox $3billion and that is more than enough valuation for this company at its lifestage. Compares with MGX.

And the Debt market wouldnt touch FMG at these levels. Only an Equity issue will provide for its underfunded business model and FMG and its brokers will be trying a billion dollar equity issue soon and that will go perfectly with their billion dollar loss for FY08 (yes thats right a billion dollar loss) will surely push the shares further lower toward $5 and lower. Get futher advice on this point.

Remember if FMG could reach their ramped up ore targets there are not enough ships to move their b grade ore to get their forecast $3billion turnaround in profitability and they WILL suffer ore price declines as more ore hits the market, even their own b grade ore will depress their own b grade ore price and their share price in 09/10/11

The Story is over in regard to getting a higher valuation. I agree with Macquarie. FMG will hit $5 or lower before it hits $10 ever again.

Be very very careful of this hypster. Hes not to be believed. He has limited qualifications to send such notes.

Get your own research advice and ensure you pick up Macquaries report before you invest in these shares.

For the record my short is closed for personal reasons not because FMG wont go much lower but Im just not sure when.