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And Iron ore up again by the way, approaching $100 for 65% FE. Like some of the other well informed posters have mentioned, I expect to see this over the 50 day moving average soon.
Coiled spring for sure here.
Morning Owls. I think you nailed the point on the head. A PE of 4 which would be share price of around 260p is cheap, A PE of 2 is absurd and presents a sizeable upside opportunity to my mind. That's where we see ourselves now and it's why I don't see the price hanging down hear for much longer. i can comfortably see 100% upside here in the short to medium term. I'm also thinking ahead to what they upgrade production to 12MTPA at the end of 2020. That's going to add at least another $150m cash to the bottom line making the price looking even more daft. This could be one of the shares of 2020 easily
Arguably it was cheap with a PE of 4 (when I bought) but the share price still halved. Fundamentals play only a small part in this share. It is very volatile, hopefully it is time for some upwards volatility.
Ferrexpo is a ftse250 company.
Let others trade around I'm staying totally put until the major re-rate begins. It's got a crazy price tag at the moment and we all know it. I get the feeling that's about to change very soon though :) Coiled Spring comes to mind
Ukrainian authorities can’t do anything
In general, the Ferrexpo group in January-October increased the production of pellets by 2%, up to 8.871 million tons, compared with the same period in 2018. By the end of the year, the company planned to produce 10.4-10.6 million tons of pellets. Concentrate production over the same period increased by 4.6% to 10.965 million tons.
Isn't the key issue here whether or not the Ukrainian authorities confiscate assets or impose punitive taxes on fxpo which are politically motivated, rather than any question over the innate cheapness based on fundamentals?
Owls - agree but I was stating the same ... a PE of 2 and a divi of that size before Fool echoed the same. I’ve challenged many to find a cheaper miner with such metrics , none has found one yet. Name one if you can.
It may be a good investment but I wouldn't use a quote by the Motley Fool to justify it, they are hopeless.
positive: Iron ore price up 6% in a week as Vale is doing everyone a favour by limiting supply in Q1 2020.
https://www.sharecafe.com.au/2019/11/18/iron-ore-edges-higher-despite-weaker-china-data/
https://www.argusmedia.com/en/news/2013272-vale-revises-down-2019-iron-ore-shipment-projections
We havent moved on a 6% rise, price here should be 2.5x that rise presumerably held back by the overhang from the seller.
This link confirms again what a few have been saying (including myself)
These are crazy cheap levels. Accumulate and then be patient is my view! This can comfortably go back to £2.50-£3.00 range.
https://www.fool.co.uk/investing/2019/11/01/looking-for-income-id-buy-these-ftse-250-dividend-stocks-yielding-10/
My first high-yield FTSE 250 pick is Ukrainian iron ore miner Ferrexpo (LSE: FXPO). This isn’t one for the faint-hearted. It’s currently without a CEO after Kostyantin Zhevago stepped aside to resolve issues at one of his other firms earlier this week. The company has also been hit by corruption allegations and corporate governance concerns.
Still, despite these issues, Ferrexpo’s underlying business is throwing off cash. Between 2016 and 2018, the group reported free cash flow from operations of $690m. Of this, $150m was paid out to investors via dividends, and $335m was used to pay down debt.
City analysts are expecting this trend to continue. They’re forecasting a net profit of $468m, implying the stock is currently dealing at a forward P/E of 2.1. Analysts also believe Ferrexpo will distribute around 30% of its earnings to investors with dividends, giving a yield of 13.6% on the current share price.
All in all, I think Ferrexpo’s low valuation and high dividend yield more than make up for the risks surrounding the business