Hi Aquamale. While I am not keen to sell - I see underlying...

Hi Aquamale.


While I am not keen to sell - I see underlying reasons why some smart money may want out -

1. WTI Oil is at all time low and threatens major support at $42. If we break $42 we may head to next low of $32. I don't believe this will happen but there is a lot of selling pressure so we can't rule this out. As I write this it has rebounded a bit to $42.8. Citibank and other banks have also revised their average projections for oil in 2015-2016 to around $45 based on recent China projections.

2. S&P500 signs of topping and potential for major correction. Look at the S&P500 chart (monthly) and view that we have not had a major correction since 2008. That's close to 7 years of extremely bullish momentum with no major correction thanks to easy money from QE. Stocks never go down and the good times will always continue right? Smart money is already pulling out in anticipation of the downward move. Note - a period of consolidation from March till now. This is potentially preparation for a downward move as we have stalled to the upside.

3. The smart money withdraws first- http://www.bloomberg.com/news/artic...ders-are-fleeing-stocks-as-the-masses-pile-in

These factors don't matter to long term investors (and nor should they), I have purchased through my Super and will hang if for the next 1-3 years. The reason for the sell off I feel is due to investors taking the money in light of a potential major correction to possibly re-enter at a lower price. The fundamentals of FAR haven't changed - but I don't fault anyone for selling now. I look to purchase more at 4-5c or lower (pending how deep the coming correction is) Good news out of the future drilling may help (provided the timing is right) but near term factors for the next 60 days will keep the stock down.

I hope I'm wrong - but everything I'm seeing in the big picture proves otherwise.







I would be keen to understand in logical terms the reasoning for anyone wanting to sell at this point.
To anyone that is shedding FAR at the moment, any chance of explaining why?

I am genuinely interested and would like to canvas an opposing view to my own to perhaps balance my thoughts of where we are at and what is on our doorstep, i.e I am super optimistic.

Please let's keep emotion out of it, would be keen to solicit some honesty.