My question for Al.
if a stock price trades down just prior to a halt - is it a reliable indicator of lousy news?
His answer: (Hope you dont mind Al)
Not at all. I think the selling we experienced this morning in FNC and the last 2 weeks for most resource stocks, actually is fund selling. From what I am hearing, many people that own resource stock mutual funds, are calling their banks and cashing out of the resource funds, to lock in profits. To pay out the redemptions, the fund managers have to sell off some of their holdings, to raise the cash. This is why we are experiencing the mass exit in stocks like NOT and FNC, the fund managers have no choice.
Knowing what I do about Peter Smith, he is not the type of guy to give away his hand. My bet is todays halt took most people by total surprise, they just weren't expecting it. After all we were told, not to expect any visuals, until after all 4 holes were drilled.
How would you like to be one of the 300k shorts right now, sitting back waiting to see what kind of news FNC will release? My bet is a few of them have skid marks in their underwear. Looks good on them, I hope FNC hits the motherlode !!!
* I hope so too.
Goldstar40
