Hi sb1,
So what you are saying is that the SP could go up, but it also could go down. Sounds fair enough.
It is always a sound idea to take some profits along the way. Having said this, considering that you were extremely bulllish, and given the obvious fact that FNT are now in a potentially company changing situation i.e. after their two recent, very cheap, and highly attractive acquisitions (the Murraydium and Dalkeith projects), you seem to have baled out (in part) extremely early. Apart from the fact (IMHO), that FNT is currently and clearly considerably undervalued.
Nevertheless, your action should be a lesson to all investors that even the most bullish investors do take their profits from time to time, which is quite okay, and always a personal decision. Generally, this also answers the question that HC posters (like GDoggy) often pose i.e. "why would anyone be selling at these current very low prices?".
I have also been tempted to take some chips off the table at these current higher prices and book a 100% plus profit, however, I believe that investors are currently involved in a significant reappraisal and thus rerating of FNT. This is a volatile process that can take many weeks. It involves a fierce battle between new types of investors that are taking up significant positions in FNT for the first time, and existing investors, who are leaving entirely, or perhaps just taking some profits at a higher SP (like you). At the end of this rerating process, I believe that these new types of investors will emerge victorious, which should mean that the FNT SP will be substantially higher.
Apart from positive aspects of the above process, which I believe will be very healthy for FNT as a company, as well as its SP, I have decided to remain fully invested in FNT for the following 10 reasons:
1. FNT has A$5 million cash in the bank.
2. Both the Murraydium and the Dalkeith projects (Gascoyne, Koolya and Kalgoorlie), were acquired for very little outlay.
3. Both the Murraydium and the Dalkeith projects have no sovereign risk i.e. they are located in Australia.
4. Tolukuma EL2531, as well as the Murraydium and the Dalkeith projects, are all 100% owned by FNT.
5. Despite both these recent acquisitions, and the fact that the Tolukuma EL2531 project has been significantly advanced over the last few years, FNT still only have 716 million shares on issue.
6. FNT are about to embark on their very first exploration activities (or are already doing so) at Murraydium, and at one or more of their Dalkeith projects.
7. FNT are due to announce their Saki assay results, which will include the assays of the historical Newmont drill cores (that haven't been assayed before)
8. There is the distinct possibility that FNT, after this latest round of Saki assays have been examined by an independent geologist, will be able to announce a JORC "Inferred Resource" for Saki.
9. Saki adjoins the existing Tolukuma mine and mill ML104, which is due to resume operations next year.
10. Over the next few weeks and months, there will be a regular stream of announcements from FNT concerning developments at Tolukuma, Murraydium and the Dalkeith projects.
Wishing you continued success with FNT with the remainder of your holdings.
Cheers.
(20min delay)
