Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Monday, 27 April 2015

Boing...

Bounce

An electric 5.6 per cent bounce in the iron ore spot price to US$57/tonne brings a little more temporary respite to the beleaguered Fortescue Metals (FMG) and its ailing stock price.

FMG was up by 8.6 per cent at the open, briefly touching $2.42, before settling at $2.40 (last settled trade).


This will push Fortescue's market capitalisation back above $7 billion, although this is still less than the value of the group's total debt.

Still a pass for me - way too much debt and excessive exposure to a game of commodity price roulette - but best of luck to traders.