The sheer volume of trite and self serving posts yesterday illustrates why respected FML posters have virtually given up offering sound advice because of the amount of waffle going on.
It is also fairly obvious that there are quite a number of novice FML shareholders that are onboard as a result of a tip from friends or information gleaned from a newspaper, magazine or TV article, and if one you might be concerned with just what is going on.
To state the bleeding obvious short term traders are all over this stock trying to push the share price either up or down by any means to suit themselves and face it they are not going to go away - novice shareholders are a prime target for them, so think before you buy or sell.
Focus is a gold miner and producer and of course its share price will be effected at any time by the price of gold and the currency ratio between Australian and US dollars - share price over corrections will initially occur in both directions until some stability occurs.
Astute gold stock holders will tell you to do your valuations on the price of gold being at least $100 less than it currently is (always treat the stock price as being less than it is so if there is an overnight downwards fluctuation in the price of gold you are better mentally prepared to assess a lower share price opening).
The only person who can predict with any accuracy the future price of a gold stock is the tooth fairy and her track record is not that great - the Focus share price is going to go up and down and longer term holders are betting their knowledge and research on it being more up than down.
If you are nervous about Focus have a think about the following:
1. All the recent good news to date is centred on Tindals and there is plenty of potential for more discoveries in this area.
2. Results from the Mount further south are yet to be announced and the company has high expectations from this site.
3. The Three Mile Hill Mill is on schedule for a December start up, plus there is a toll contract in place with Matsa which will provide further revenue for Focus.
4. If ore production exceeds the capacity or logists of Three Mile Hill, Focus has a 7 year toll treating agreement with the nearby Greenhills mill that can be used for further production.
5. There is plenty of exploration upside in other parts of the Focus tenements - have a look at the maps of the preliminary Electromagnetic/Geophys surveys conducted to the north west of Three Mile Hill plus the area about a kilometre north west of the Mount(these maps are in the presentation given to the Australian Gold Conference by the CEO on 19th October 2009 - http://www.brr.com.au/asx/FML/focus-minerals-ltd/
6. According to the Western Australian Department of Mines and Petroleum, Focus currently has 192 mining tenements of various types in the area plus a further 32 pending - on past selections one would not think these pending tenement applications are based on wild guesses.
7. By mid January 2010 Focus could have up to three drilling rigs operating over its tenements and according to the CEO one of these will be targetting identified new prospects.
8. Focus does not have infrastructure hang ups that many other miners suffer - it has mains grid electricity, main pipe water, is within spitting distance of a high density sealed highway with good local roads, plus has a localised labour force.
9. The icing on all this cake is of course a focussed management and on site team that is technically sound.
While it could be said with some justification that things look bright for Focus at the moment, just remember that it is a gold stock and there have been plenty of gold mining companies that have failed in the past.
As always those that do their own research benefit.
Luck has nothing to with it.
kentwang
FML Price at posting:
5.5¢ Sentiment: ST Buy Disclosure: Held
(20min delay)