Short Sellers Targeting Fortescue

SMH reported Fortescue (ASX:FMG) is targeted by short sellers on speculation iron ore stocks are a poor buy with China demand falling.

As quoted in the market news:

While Fortescue has outperformed the likes of BHP and Rio in recent weeks, it has not been immune to the heavy selloff in resource stocks. It is now trading at $4.84, down 20 per cent since late March. Last month, BusinessDay revealed renowned short seller Jim Chanos, who exposed Enron as a fraud and bet against Macquarie Bank’s infrastructure model, had singled out Fortescue in a private investor briefing in early April as a prime short-selling opportunity.

Click here to read the full SMH report.