Found this on Kitco, an article by Neil Charnock June 4 07. Below is an excerpt from his article. Pls let us know if you think he's talking about Fox. He's quite optimistic to say the least....
"This level of uncertainty has led to one resource stock I have just bought, being heavily hit from $1.40 recently to the 90c range and they are mining nickel and copper with zinc to re-enter their income stream. They are back at about $1 ($1.10 a day later as the vastly over sold condition quickly reverses) as I write and at $125M Market Cap and yet they would be earning a gross profit of about $2-$3 M per month at their current rate of production. This is set to rise yet the tax loss selling was ongoing for its own sake and created a fantastic opportunity. Another prime resource stock I know of is selling at a P:E of under 5 and there are other similar situations – these are misunderstood gems and the second half of 07 is misunderstood too in terms of ongoing commodity demand. These stocks are not “penny dreadfuls” either – they are quality companies growing excellent projects.
This is precisely when investors should be subscribing, getting better educated, picking out the elite stocks, hitting Kitco for regular price updates, product and opinion – and buying undervalued gems set for price appreciation. We are concerned that our clients and all investors get this right yet the indicators are that this is not always so. It is not easy to do, buy when things look bleak - even if it does sound simple – once these stocks take off the timing risk increases and the prime leverage opportunity dissipates.
A great term – prime leverage…I mean that buying close to lows produces much larger percentage gains in your capital (prime - meaning number 1, A1, optimum) and therefore you do better. This is simple mathematical theory. I use the word dissipates as it refers to a dispersal which is like a spray… price rises cent by cent and buying opportunities can be seen to be spread across the higher and higher price spectrum. The higher the share price rises the lower the net and percentage gains become.
Take my purchase in the stock mentioned above – I see $1.40 as a near term price target (later to over $2) and now have an average purchase price of $0.95. At $1.10 in a few days I am up nearly 16%. At $1.40 this would be a 47% gain however if you wait until you are certain it is in a strong uptrend it will be trading at mid $1.20’s or 30’s and you may expect an initial 10-20c gain, (7.6% - 16%) however with higher risk and a chance of getting chopped out on a stop loss as it next consolidates. It is technical analysis and “whole picture” fundamental research that identify these opportunities. At $2 I would be up over $110% yet if I waited for it to break that $1.40 level and confirm the rise I would have stiff competition for stock and a maximum gain from $1.45 to $2 would be 38%."
For the full article, go here.. http://www.kitco.com/ind/charnock/jun042007.html
FXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
