In a similar fashion to iron ore, Twiggy Forrest’s FMG has almost halved from its recent high, the business might be looking to reinvent itself but for now, this is an iron ore play that obviously will see revenue fall away as iron ore prices decline. FMG remains a major dividend payer and with its next offering being paid in February, if we see ongoing weakness into 2023 this could become an interesting dividend play.
- We like FMG if/when it becomes oversold on pessimism towards China – which seems to be getting closer by the day.
MM is neutral on FMG ~$14.70
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