Dancing Conversation

We all feel the same frustration, though I’m grinning about which ideas you probably think are ludicrous. I try to think out of the box. But even my crazy ideas for DD add to a larger picture. The whole idea of due diligence is for your own decision making data, so you don’t have to have a day job.

FRUSTRATION CONTEXT

Allow me to couch the frustration within a DD context. Naturally, all of us are going nuts watching the SP fall, knowing there is news to be released. Yet impatience grows each empty day, causing doubting questions for fear of losing your money.Is there bad news? Why would someone be shorting a stock when it’s low, knowing news is coming. Maybe the shorters know the bad news? Doubts add to the old standing frustration, reflected in the comment,

“Peter [not] being able to get the proper valuation of our company reflected in the sp.”

And of course, this is piled on top of simply not understanding stock behavior. Surely it contradicts the profitable future of Fancamp in the Conversation post:

http://agoracom.com/ir/Fancamp/forums/discussion/topics/481912-conversation-with-peter-smith/messages/1548408#message

Another example of this SP unpredictability: by now folks know Champion will be releasing a 43-101 of 2.7 billion tons Iron.Cliffs just bought out Consolidated Thompson. CEO’s think WISCO, a huge benefactor of 8 billion from that deal, lay in wait at Fermont. Yet CHM dropped to $1.69 –perhaps taking FNC stock with it. Maybe the thinking is that Iron market is going down, so it’s time to short iron stocks – even though this iron won’t be available for years. Who knows. Does Peter know? What steps should he take to do something about our SP? Why doesn’t he simply release the news he’s holding to make the swine shorters eat it?

DUE DILLIGENCE

This deserves a phone call. Upon calling, I find out that Peter just got back from Beauce –assays pending. That’s what I like to hear, FNC management on the drill site. They’re down to 700 meters in McFaulds - assays still pending. There is no way Peter will give visuals on anything until he knows what he’s got –lesson learned from McFaulds 2008 when he wanted to wait 2 weeks to check out the core, but because the SP was dropping from a leak, he thought it fair to let everyone know right away. Then onsite, he discovers massive nickel overlooked by the geologist onsite.Smith said that won’t happen again neither by a the geologist mistake nor by rushing a news release. So, OK, no news on McFaulds or Beauce yet.

What about Magpie PP. They are using a new lawyer, and the process is getting bogged down and slowed down. The first tranche will be out this week or next, depending if the paper work can get done. Also, filling the second part took longer because the Magpie metallurgical works were so complicated, they wanted to meet Fouad in person and get a grip on what they’re investing in.That takes time and it’s complicated. Also, (this one is an unconfirmed ripple) one wanted to take time to reconsider the benefits of investing in Fancamp directly rather than solely with Magpie PP. So things change. It will all get done, just longer then we wanted.

Longer isn’t that much longer. Originally, I though May would be slow until Lac Lamalee and Magpie begin drilling in July. With only a PP NR in May, and hopeful participant list.However info of Beauce and McFaulds started gaining momentum. Those still could come. But here’s the deal: I don’t want a NR announcing drilling has begun. I want one that says, based on the gold or nickel found in this assay, we will commence a drilling program. So assays need to get back first –eh? It still could come out in May, just late May, not early May.

So, where are those Magpie metallurgical results? What’s the hold up? One of the primary issues of not releasing the info is just that. Fouad and Smith want to keep the info from the public. This is because they want to protect a patent pending, by not allowing the data release. That makes sense, but what frustrates me is that they also need some more cash to do something on the study which probably includes drilling. At first my reaction is, “How many years and another study needed?” But then I realize that Smith’s original plan was to drill and add data to the metallurgical study, so that all fits.It just doesn’t fit with my patience.

SWEATING BULLETS

As you can see, though we are impatient, it still doesn’t reflect on lack of action by FNC management. So I’m not selling stock, and I now realize that shorters have the month of May to play unless Smith surprises us with 1) a visual, 2) a Magpie PP with a huge player attached to the NR, 3) Champion offer for FNC 17.5% -placing a new valuation for our Fermont investment, 4) Champion spiking upwards with 43-101 release, 5) demand increases based on low FNC SP.

All this would have me sweating bullets if I were a shorter.

DEMAND –FIND THE ORE

However, no amount of DD posting will raise the SP more then .10c. Even now, assisting Smith with private placements does nothing to the SP. We’ve seen large volume increase, which I’m beginning to see as exchanges or “down push” shorting, but not “demand” increase. What will make the SP rise is a large, very large wide-spread interest that significantly increases the Demand.

The only thing that will do this is something substantive in a leak or a news release. Which boils down to one thing Smith can control: FIND THE ORE.

And this is what Fancamp is actively doing or will be actively doing on 6 fronts from now through the summer: Lac Lamalee, Beauce, McFaulds, Magpie, Desolation Lake, and Champion’s drilling.

DANCING CONVERSATION

So while Smith and Granger does their job, we investors need to be doing our job to prioritize to maximize our profits.That means doing our due diligence. A CEO wants you on board, but he’s not allowed to talk about material information, but he wants to. Yet that’s actually what you need to know to know to make investing priorities. That takes work to derive the material information from a dancing conversation. That’s due diligence.

My due diligence loves the current SP. My due diligence says during May, let the swine shorters pork out. Cause many of us are buyers at this low SP. Do you realize that at this SP we are only four times higher than our lowest since Eagle 1 was discovered, yet we are no longer the one trick pony of that period. We have so much more increased value and way more to come. Champion 43-101 alone will help. Drilling Lac Lamalee, makes every dollar you put in now a double in July…… (refer to above referenced post: Conversations with Peter Smith). Let the pork play, I'll be eating bacon.

-StockGreed