Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi, 1) Like MM, I also got into FMG too early but my holding is small (<1%). So my question is, is it a good idea to top up at current levels below $17 coming into a dividend paying period? Do you see much further downside to the iron ore price? 2) Do you have a view on WK Kellogg Co (KCG US)? Regards, Peter
Hi Peter,
Two very different companies, you must a diversified portfolio!
Fortescue (FMG): iron ore miners bounced into the weekend along with the broader market and although they are not out of the woods yet we do believe they are in an accumulation area, i.e. MM is considering increasing our BHP exposure after its break below $40. We can see FMG consolidating around the $17 area which makes the stock fairly attractive with a chunky dividend due in early September. However, we cannot discount further downside in iron ore until Beijing can turn around China’s embattled property market.
WK Kellogg (KCG US): In May cereal manufacturer WK Kellogg Co beat Wall Street estimates for quarterly sales as higher product prices offset pressure from slowing demand for the Froot Loops maker’s ready-to-eat breakfast items and snacks. Like other major brands in the packaged food market, the spun-off North American cereal business of Kellanova had been ramping up prices to shield its margins from an inflation-induced slowdown in consumer spending.
KCG has been trending lower since April and it feels like it needs to deliver solid sales to hold above $US16 – its not on our radar.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
