Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Fortescue Short-Term Better Risk Reward Emerging

Fortescue: Iron Ore at $200/Ton, A Scenario Analysis

Fortescue: A Big Dividend Coming Your Way!

Fortescue Metals: More Upside In the Near Term

Fortescue Metals Group: Slight Hiccup from China but Thesis Intact

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

We believe the time has come to take money off the table for <a href="https://www.smartkarma.com/entities/fortescue-metals-group-ltd" target="_blank" data-smartkarma-citation="entities:41:1" rel="noopener">Fortescue Metals (FMG AU)</a> as iron ore prices are likely to correct sharply in the near-term. From its peak of 174$/ton, iron ore prices have corrected nearly 13% and are now at 151$/ton. <figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/186/102/original/image_51647481031612174374116.png?1612174374" class="editor-image img-responsive" data-smartkarma-image-id="186102"></figure>Source: SGX, BloombergWhile the company's results have been excellent, and its balance sheet is in great shape, and on spot prices, the company is very cheap at 3.4x EV-EBITDA FY21. <a href="https://www.smartkarma.com/entities/fortescue-metals-group-ltd" target="_blank" data-smartkarma-citation="entities:41:1" rel="noopener">Fortescue Metals (FMG AU)</a> share price will trade with iron ore prices as the correlation there is very strong.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/186/104/original/image_18778125341612175002564.png?1612175003" class="editor-image img-responsive" data-smartkarma-image-id="186104"></figure>Source: SGX, BloombergWe think taking money off the table and waiting for the dust to settle on iron ore prices will be a good approach to playing <a href="https://www.smartkarma.com/entities/fortescue-metals-group-ltd" target="_blank" data-smartkarma-citation="entities:41:1" rel="noopener">Fortescue Metals (FMG AU)</a>. We see iron ore prices dip to the 120-130$/ton levels in the short-term.

We believe the time has come to take money off the table for Fortescue Metals (FMG AU) as iron ore prices are likely to correct sharply in the near-term. From its peak of 174$/ton, iron ore prices have corrected nearly 13% and are now at 151$/ton. Source: SGX, BloombergWhile the company's results have been excellent, and its balance sheet is in great shape, and on spot prices, the company is very cheap at 3.4x EV-EBITDA FY21. Fortescue Metals (FMG AU) share price will trade with iron ore prices as the correlation there is very strong.Source: SGX, BloombergWe think taking money off the table and waiting for the dust to settle on iron ore prices will be a good approach to playing Fortescue Metals (FMG AU). We see iron ore prices dip to the 120-130$/ton levels in the short-term.

Fortescue Metals

Fortescue: Take Money off the Table