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Showing posts from September, 2012

FMG - Is this stock ripe for the picking?

The news is not good , but does that mean an opportunity for some  or is just the beginning of the doom and gloom for the iron ore sector. Fortescue Metals Group currently is feeling the pain of the leaked news of them seeking waivers for their debt.FMG SEEKING DEBT WAIVERShares of Fortescue dived the most in almost four years on Thursday after a report that the company had asked its lenders to waive all debt covenants for the next 12 months. Fortescue Metals has had $1.5 billion wiped from the value of its market capitalisationWho FMG OWES MONEY TOO ?According to Loan Pricing Corp data Lenders to fortescues  includeNational Australia Bank Commonwealth Bank of AustraliaWestpac Banking CorpAustralia and New Zealand Banking GroupJPMorganBank of America Merrill LynchAnalysts have said that “If the iron ore price remains around current levels then we suspect Fortescue will need to source at least an additional $1 billion of funding in the near term and around $4 billion over a two year pe…