FMG 2.02% $25.70 fortescue ltd

It is not really about P/E! FMG is risky

  1. 370 Posts.
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    I understand most of the posts are from current holders of FMG, so negative posts about the stock really get backlash.
    However, it is still important to critically analyze the fundamentals.
    Most of people talks about P/E ratio of 2 to 5 and think FMG is a bargain. I am pretty certain that's a bargain, only if the iron ore price is so predictable and will remain above $85.
    Due to the uncertainty of price(current at $93) and the ongoing supplies from all other miners, those people using P/E ratio for valuable must have crystal ball about iron ore price.

    Keep in mind, the all in sustain-in cost for FMG is $85, if the current iron ore falls any more than 10%, FMG will not make profit!

    I cannot predict when iron ore price is going, better than anyone. But, I know the basic supply-demand economic behind iron ore is not favorable.
 
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$25.58 $25.78 $25.39 $142.5M 5.556M

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$25.71 2818 2
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Last trade - 16.10pm 28/03/2024 (20 minute delay) ?
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Last updated 15.59pm 28/03/2024 ?
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