3D·

Fortescue Metals - better an end with a scare than a scare without an end?

$FMG (-7,56%)

I started a savings plan on Fortescue Metals a few months ago and am now down around 17% 🤑


The reasons for my investment included: strong margin, solid balance sheet, supposedly favorable valuation, experienced management


I thought that the one or other support not shown here would hold. This was not the case and a nice downward trend has established itself, but theoretically there would be this strong support between $13.60 and around $14. That would still be around 9% of the current price level.


The impulsive part of me wants to get rid of this position right now.

The quiet voice inside me says: delete the savings plan, keep watching and if the support holds, buy more.

On the other hand, I can do both, sell now and possibly buy later at a lower price (if there is still interest 🤓)


The share is in any case: heavily dependent on Chinese demand, is struggling with strong cost pressure, the last figures were probably not so exhilarating either, I think over 50% profit slump and I get a headache when I read that they are investing in hydrogen projects and green energy instead of their operating business. (although of course that also has potential)

🤔

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7 Comentários

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The share needs a lot of patience. The investments naturally put pressure on profits. But you can see from BRD where it leads if there is no investment
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@Tenbagger2024 you also stay inside or
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The share has been trading in a sideways corridor since 2021. And is currently in the lower part of it. I will continue to wait and collect the dividend.
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Well, they are heavily dependent on iron and their iron is not the highest quality, so there is no opportunity to set prices. Demand is also in the basement. Nobody knows whether green hydrogen will catch on in the next few years. I still have a very small position and am also in the red. If an improvement is in sight, you can follow suit. But even the management is pessimistic about hydrogen. I think within 10 years it will rise to the point where I am in the black again.
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Rio tiento is the better choice and I bought more of them back then
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Fortescue has also just paid a dividend. After that, the share always falls a little anyway.
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i also have the share, if the support does not hold i will sell
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