@yellowfin
fmg surprised everyone with their ability to bringdown their cash costs. me included.
i dont know whether i;d say investors are too logical - id say its the reverse. investors, particular individuals investing by themselves - are conditioned by the market. when stocks are sliding they look for negatives, when stocks are climbign they look for positives.
the key in value picking is to understand when thats inflecting - and to be able to work out which assets are toxicly burdened vs those that will make it through.
one of the key things the tends to stand out is that asset prices start rising well in advance of the actual business cycle - because opportunists see the upside and need to move first to secure discounted assets before the cycle turns
thats why sto has bounced - despite still carrying a world of debt servicing pain - and its why i think mrm is a strong buy here for those with risk appetite.
once asset prices start to lift and demand makes itself apparent, debt terms become more forgiving as lenders become inclined to support businesses through to the expansionary phase of the cycle.
those 2 items reinforce and quickly drive big impetus back into the sector/
but thats just my opinion. ive gotten these things wrong before. but ive won more than ive lost.
and the long term gains available if you so judge these correctly are what investing is all about.
this is the part of the 'job' i enjoy the most.
