Hey Guys/Girls:
Sidetrack a bit here......what I wanted to write of is something that people keep on asking me time and time again.
Questions like
'Where do you get your info?'
'Why do you know so much about this company?'
'How do you know how to calculate the share value?'
'Where do we start if we know nothing about mining or investing?'
etc etc etc....you get the picture :)
I will give you some books that I think are good guidelines....but before that, let me just assert my point that Knowledge is Power.
I have seen many people get burnt in share trading/investing(probably i should call gambling hehe) in the past....and when you ask them, why they bought a certain share...their answer will be 'Because I heard rumours that.....' or 'My uncle/friend/brother told me that it is a good buy' etc. When you ask them whether they know who is the CEO, what is the history of the company etc, they don't even have a clue.
My point is - even SOPHISTICATED investors lose money sometimes in the market, so what hope do you have when you don't know anything about the company you are putting your money in?!
The more you know, the more confident you get and the less you are affected by daily ups and downs of the share market (unless you are a day trader, which i am not)
Basic questions you should know about companies are:
1. What does the company mine? (i know, it is a very simple question, but ask some people that have tens of thousands in the market, and they might not know!)
2. What country does the company mine in? What kind of political history does that country have, for example ghana, papua new guinea, canada etc? Is the government stable?
3. What is the demand of the commodity that they are mining?
4. Which stage of mining are they in? Are they just exploring? Or they have already started to prove reserves? Are they at the BFS (Bankable Feasibility Study) yet? Have they start to produce the minerals yet? This will determine which stage the company is in and to allow us to compare with other companies in the same stage.
5. Who else is mining in the same area? What is their market capitalisation as compared to the company that you want to invest in?
6. Who is the management? Do they have proven experience?
7. What is the history of the company? When did it start and what did they acheive so far?
8. Is the area that they mine fertile? Have there been any proven reserves surrounding that area?
Most of these questions you will be able to get the answer by simple googling it, or going to wikipedia or the company website, or asx announcements....there is plenty of info online.....just whether we want to find it :)
This will give you a good indication of what industry and background this company is operating in.
Few books that I am reading is
http://www.amazon.com/Junior-Mining-Investor-Profitably-Exploration/dp/0979533503/ref=sr_1_1?ie=UTF8&s=books&qid=1298455225&sr=8-1
http://www.amazon.com/Investing-Resources-Profit-Outsized-Potential/dp/0470613262/ref=pd_sim_b_8
http://www.amazon.com/Mining-Valuation-Handbook-Investors-Management/dp/0731409833/ref=pd_bxgy_b_img_b
So far, the books are proving to be a gem in helping me to understand the industry better, as i am not a geologist or miner etc......
Have a good day!
Showing posts with label Base Metals. Show all posts
Showing posts with label Base Metals. Show all posts
Wednesday, February 23, 2011
Friday, February 18, 2011
FNT - flying!!!!!! Frontier Resources......0.42 high today
http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=1383618&msgno=6339494#6339494
basically what this guy wrote which i have cut and paste below is a very good summary of FNT.......have a look and let me know what you think.
Happy Investing! :)
basically what this guy wrote which i have cut and paste below is a very good summary of FNT.......have a look and let me know what you think.
Happy Investing! :)
ANother typical end to the day, with people rushing to jump on board.
Interesting thread and opinions.
1) I had a look at GOR as they were mentioned as a model. The main difference is their drill results while acceptable were lower than FNT previous drilling at Andewa; Which Ubid supplied for connivence.
7.9M of 10.01 g/t Gold Drill
10.8M of 7.40 g/t Gold Drill
3.0M of 10.97 g/t Gold Drill
5.0M of 18.05 g/t Gold Trench
3.0M of 14.26 g/t Gold Trench
15.6M of 5.12 g/t Gold Trench
2) The drill/trenching work above was outside the anomalies detected in the IP report. Basically previously drilling was in the halo or low grade outskirts of the deposit so it seems from the IP report. That is what makes Andewa so interesting (Exciting)
3) If you had seen Peter face when he talked about the report it was the face of someone who had won lotto and was bursting to talk about it...That is from a experienced geologist but couldn't. I think he knows he's found the deposit to mark the future of FNT. Remember he has been in this position before before politics got involved.
His actions is resigning his other directorships supports this. His focus is now on FNT and Andewa. His family has large holdings in FNT so when he benefits so do we. WIN-WIN.
4) FNT has multiple projects going on at present.
a) Andewa - total focus of the current SP rise. IMHO
b) Tasmania - really forgotten I think by the market in general
c) Ok Tedi - Lots of resources looking at the joint leases, from a huge company desperate for more resources.
5) Drilling has also been announced for April for Andewa. This is a big reason in my opinion for the rise. The drill is king and the company using the supporting evidence feels confident and have set a firm timetable for the exploration. The market likes this. Too many small cap companies never into the drilling.
6) On the market itself. VERY FEW SELLERS. This is a major factor in the rise of the SP. To be honest I'm loving it but I am surprised by recent movement. BUt the market is never wrong. There is simply now too much potential in FNT and long term holders like many here are not selling. So anyone who wants in is having to force the price up to get their share. Simple supply and demand. In comparison to GOR, if you look at their turnover during their rise, much much higher on average therefore more shares on the market, maybe more speculators or people taking profits? This has not happened with FNT. People are holding.
There is my essay.
7) Retrace - It happened on Tuesday/Wednesday and bounced back today strongly. Same pattern for the last few weeks. Each retrace has found good support and bounced nicely. So with the news getting closer, will there bit another big player come in a grab the next big comp like on Monday?? Remember big players like institutions move billions of dollars around, so while making us small fish happy, it's not a huge % of their business.
8) SPP could cause some decline in the SP depending on its price etc. But the higher the SP less the dilution and less impact on the SP overall. As its only going to be offered to existing holder it wont be the case of sophisticated investors getting a free ride then dumping.
I believe on what FNT has to offer the SP will continue to climb until at least the first drill assay's are out of Andewa. When those assay's come out, if they are good it will move hard, if not there may be some big dumpings?
I believe it will go up, simply because I've been holding for around 5 years and have faith in management with the resources now are about to bear fruit.
I'm sure there is more to say but enough to now :)
No is there going to be a Friday close of business rush tomorrow as the Sell side is looking really thin now.
Interesting thread and opinions.
1) I had a look at GOR as they were mentioned as a model. The main difference is their drill results while acceptable were lower than FNT previous drilling at Andewa; Which Ubid supplied for connivence.
7.9M of 10.01 g/t Gold Drill
10.8M of 7.40 g/t Gold Drill
3.0M of 10.97 g/t Gold Drill
5.0M of 18.05 g/t Gold Trench
3.0M of 14.26 g/t Gold Trench
15.6M of 5.12 g/t Gold Trench
2) The drill/trenching work above was outside the anomalies detected in the IP report. Basically previously drilling was in the halo or low grade outskirts of the deposit so it seems from the IP report. That is what makes Andewa so interesting (Exciting)
3) If you had seen Peter face when he talked about the report it was the face of someone who had won lotto and was bursting to talk about it...That is from a experienced geologist but couldn't. I think he knows he's found the deposit to mark the future of FNT. Remember he has been in this position before before politics got involved.
His actions is resigning his other directorships supports this. His focus is now on FNT and Andewa. His family has large holdings in FNT so when he benefits so do we. WIN-WIN.
4) FNT has multiple projects going on at present.
a) Andewa - total focus of the current SP rise. IMHO
b) Tasmania - really forgotten I think by the market in general
c) Ok Tedi - Lots of resources looking at the joint leases, from a huge company desperate for more resources.
5) Drilling has also been announced for April for Andewa. This is a big reason in my opinion for the rise. The drill is king and the company using the supporting evidence feels confident and have set a firm timetable for the exploration. The market likes this. Too many small cap companies never into the drilling.
6) On the market itself. VERY FEW SELLERS. This is a major factor in the rise of the SP. To be honest I'm loving it but I am surprised by recent movement. BUt the market is never wrong. There is simply now too much potential in FNT and long term holders like many here are not selling. So anyone who wants in is having to force the price up to get their share. Simple supply and demand. In comparison to GOR, if you look at their turnover during their rise, much much higher on average therefore more shares on the market, maybe more speculators or people taking profits? This has not happened with FNT. People are holding.
There is my essay.
7) Retrace - It happened on Tuesday/Wednesday and bounced back today strongly. Same pattern for the last few weeks. Each retrace has found good support and bounced nicely. So with the news getting closer, will there bit another big player come in a grab the next big comp like on Monday?? Remember big players like institutions move billions of dollars around, so while making us small fish happy, it's not a huge % of their business.
8) SPP could cause some decline in the SP depending on its price etc. But the higher the SP less the dilution and less impact on the SP overall. As its only going to be offered to existing holder it wont be the case of sophisticated investors getting a free ride then dumping.
I believe on what FNT has to offer the SP will continue to climb until at least the first drill assay's are out of Andewa. When those assay's come out, if they are good it will move hard, if not there may be some big dumpings?
I believe it will go up, simply because I've been holding for around 5 years and have faith in management with the resources now are about to bear fruit.
I'm sure there is more to say but enough to now :)
No is there going to be a Friday close of business rush tomorrow as the Sell side is looking really thin now.
Thursday, November 11, 2010
CFE (Cape Lambert Resources) - Stable and Growing Company
Shares on issue – 625m
Share price now – $0.44
Market Capitalisation – $275m
Main Commodities – Iron (mainly in Congo), Gold, Rock phosphate and base metals.
Strategy - To acquire and invest in undervalued and distressed mineral assets and companies, and to add value to those Assets through a hands on approach to management, exploration and evaluation to enable the Assets to be monetised at a multiple. As Assets are monetised, the Company’s Board intends to follow a policy of distributing surplus cash to Shareholders.
Why i like this company is the strategy....in the past this company has returned quite some cash dividends to the shareholders once it find a seller for its assets, in fact the first time I bought this share at $0.385 on 11 June 2010, I received a dividend of 7 cents fully franked dividend a few weeks later. What was surprising is the share price actually rebounded back to $0.40 a few weeks ex-dividend! Pretty good dividend yield for such a cheap share. Since that first purchase i have continually topped up during the past few months.
What was impressive is that they took over DMM only in August 2010 for around $55m and recently signed a contract to sell DMM for $83m plus royalty from the production.....NOT bad for such a short holding period....
Tony Sage as chairman has indicated recently in news that he wanted to grow CFE to be a company with a billion sized company (around 3.6 times current market cap) http://www.theaustralian.com.au/news/arts/mining-magnate-plans-his-next-role-hollywood-producer/story-e6frg8pf-1225949108880
DJ Carmichael had a buy recommendation and a target price of $0.80 in July 2010, and calculated the sum of parts valuation to be significantly more than the share price. (http://www.capelam.com.au/IRM/Company/ShowPage.aspx?CPID=2025&EID=10216652&PageName=Carmichael%20Research%20-%20CFE%20Buy%20Recommendation%20AUD$0.80)
DYOR (Do your own research) and let me know if any thoughts. J
Happy Investing!
Irene
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