Well,i started this thread so i may as well contribute.I thought...

Well,i started this thread so i may as well contribute.

I thought at the time that the 13.5s might get taken out and finish on .14.

Wasn't to be.

The US are in tatters.
I have no doubt about that no matter what the media is saying.
As well, i believe there is still along way to go for the global markets. Primarily the global markets have a way to go.

AMBAC was bailed out. Will others be so lucky?
What about the Monolines?

However, as Druidic pointed out, it means "Jack Shisenhousin" to the explorers and producers in the Pilbara region. If there is another major downturn, yes it will affect all markets and to some degree FDL.

Why???

Simply because of Daytraders fretting over a few cents here and there with the daily gyrations of the market.

In otherwords, they don't look at the "Big Picture".

Its all about the next "Fix" to pay of margin loans and meet their needs. They will dump it like they have done before.
Thats also when astute investors will hover around waiting patiently for the carnage.

Atm, China is very hungry and this is the year they will stitch up Contracts - JV's. The timing is perfect.

The CFE announcement was an important milestone for the Pilbara region and it looks like there is alot more to come from the Chinese.

This puts FDL in the right place at the right time with the right resource. Therefore, any market noise or downturn will have minimal impact in the scheme of things.

Regarding the options. There is plenty of time for the options. As time shortens to expiry the gap between FDL & FDLOA will widen eventually towards the .10 cent mark.

Now, the fun part is, if FDL should take of well before expiry given a major announcement.

This happened to me about 6 or 7 years ago when i had HDR & HDRO.
An announcement pushed HDR through the roof and HDRO followed on a 1:1 basis. For every 1 cent move by HDR, HDRO moved the same amount. In some instances it moved higher than the heads. That gave you an opportunity to trade from the options to the heads at a discount and visa-versa.

This scenario could play out with FDL.

Still early days with alot of games to be played over the next 6 months IMO.

Enjoy!!!

Cheers markco2