Coronavirus rains on Fortescue parade

Thursday, 30 January 2020

Last week I noted some of the craziest equity price action I can recall in FMG as it soared while the coronvirus crisis mushroomed. Now the blowoff is over:

Today’s production report shows where the enthusiasm was coming from:

That’s a cool $8bn in gross profit. Trading on a rough forward P/E of 6x.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.