SPQ's share price - it's about Perception, Branding & Timing - IMHO

(These are simply my thoughts - do not take them as gospel truth or anything even close. Snug)

To all retail investors who have invested in Spider Resources and who plug into this great Agoracom hub to share thoughts, data, and due diligence, the present SPQ share price is confounding. 4 and a half cents. Ludicrous.

But why? Spider Resources has assay results that speak of large tonnages (and potentially larger tonnages) of chromite, nickel, copper, and PGEs. To my way of thinking, SPQ is one of the ROF Big Three - NOT, FWR, SPQ (Detroit version - think GM, Ford, Chrysler). Our ROF Big Three share the same geological formation - the Ring of Fire.

SPQ's share price is depressed (just like NOTs and to a lesser extent FWR). Here's my answer to WHY?

a) Perception - Spider Resources is the "runt" of the litter. It has little in the way of resources (think $$$) to spend on drilling, and has a tiny capitalization. Its share price is 4 1/2 ¢ versus FWR's 31 ¢, and NOT's $1.00. Moreover, nothing great has happened with SPQ's drilling for some time. Basically, nobody's got the "hots" for Spider Resources even though with the number of claims it owns and the mineralization it's already found is excellent.

b) Branding - It was interesting when a number of us (Agoracom types) met George Tsilois (Agoracom CEO) at the Vancounver convention. For a while we talked about branding, and its importance to a company. It requires marketing and a niche.

For the longest while Spider Resources website was sad, real sad, I mean real sad. So the dedicated SPQ investors who worked against the reverse split last year spoke up at the 2008 AGM and railed against the SPQ website. So Neil has done something about it. However, he has promised more work - which I haven't seen yet. This is an example of a simple tool e.g., a website, which can help marketing and branding. Think about yourself - an investor - when did you last go out to www.spiderresources.com?

The branding of Spider Resources could be much better.

c) Timing - Sometimes, even with the best and hottest thing going - e.g., the Ring of Fire - something sends a shadow over a very bright story. The world's economy is in the crapper. Even Cliffs Natural Resources, which has bought into KWG, and therefore indirectly into SPQ, has to be hurting. Their customers, who buy pelletized chromite/chrome/ferrochrome (sorry I'm not certain which type - I haven't done enough research) must be cutting back. So any of the "majors" including Cliffs will be very careful with investments.

The timing of the Ring of Fire is unfortunately really bad.

So those are my thoughts why SPQ is not at 50¢. In today's investment climate, it takes not only a contrarian mentally to invest, but someone who has patience and a belief in a larger vision.

That's why so many people have helped out with the MP's Letter Initiative. They have a larger vision of the future - the future just needs a little push. Ergo, a letter to our politicians.

Once again IMHO

Snug