my weekend thoughts
posted on
Feb 01, 2009 07:41AM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
disclaimer , I own not , fwr , spq , kwg, mtx and UC
I will post this on both the not and fwr boards as it applies equally
First off, I can honestly say and I am sure that many will concur that this is the first time in a long time that there has been a sense of peace on both of these boards. I don't believe i have heard a cross word of late on the NOT board and in fact some of the most intelligent conversations in a long long time have happened here. On the FWR board, activity has increased and there is a certain "love affair" with FWR right now.
Both of these plays look poised to increase in value however I believe that FWR might be hard pressed to break 50 before not breaks 2 bucks,
I would like to provide a copy of an analysis by al collard at trading chief, many don't like him but what he posted makes some sense
"On March 6th 2008 FWR closed a PP for 8,571,428 shares at $.35, included in that PP was a wt where the purchaser of one share of the PP at $.35 is entitled to buy another share via a wt at $.50 but it has to be exercised by March 6th 2009. There was a 4 month hold period on the original PP share, meaning if you bought a PP share at $.35 you could not sell it until July 7th, 2008. Also included in this PP was a finders fee to PowerOne Capital where they could purchase 857,142 shares at $.35 anytime up to March 6th 2009.
So those 8.5 million shares will be in the money any time FWR trades over $.35, that said some of these PP share holders could of already sold at a loss. Or some of those 8.5 million shares could be in strong hands where the owner has no desire to sell any time soon.
There was also 7 million PP shares that closed on Jan 11th 2008 at $.30, so investors in this group may be looking to sell shares of FWR once it trades over $.30 also. However once again some of these could be already sold, or they could be sitting in strong hands.
All told there are 15.5 million shares of FWR that are free trading from those 2 above PP's. Basically since those PP's were closed, FWR has never really been trading in the money, where investors could of made a decent % return on their original investment. Although 15.5 million shares is not an insurmountable amount of shares to chew through if FWR's share price takes off, you have to admit it is a wall of resistance that will take a fair bit of time to churn through.
Now if FWR could possibly churn through the 15.5 million shares and run up over $.50 by March 6th 2009, the buyer from the 8,571,428 shares from the original PP, is entitled to purchase another share at $.50 via the wt attached to the PP. There are two ways of looking at that $.50 wt, management at FWR would obviously like to see those wts get exercised because it would add $4.28 million to FWR's bank roll. So they may try to run the share price up before March 6th this year. The downside is you as a shareholder just got another 8.5 million shares added to your outstanding share base. And of course another whack of shares to chew through just over $.50 . Now we still have one more little downer, on the Jan 11th PP at $.30 they had a wt attached also at $.40, however if was on a 1/2 basis, but it would still add 3.5 million shares to the out standing share count and it would be another wall of shares to churn through once the stock trades over $.40.
I honestly believe both of these plays have huge potential. Of immediate interst to me is the next NOT news release. I want to monitor how the next releases are worded, in particular i want to see how they describe the drilling results we recieved of late, if you recall they were downplayed, if the next releases recap previous drill results and the tone of the message indicates that these assays are actually very very good then we can see a change in strategy by the bod. Right now they are playing things close to the vest, As soon as the NR becomes more positive and they start talking about how Intriguing the last results were then we know we are in for a ride up.
Right now the only one of my stocks that is up is FWR, and for that I am grateful, but my hunch is that NOt willnot be far behind
Have a great Superbowl sunday everyone.
Storm