interesting weeks coming up

There appears little doubt that the market is poised to re-rate FML. Despite what some excited posters think, however, nothing is certain. Those who have been in FML for more than a few months will be well aware that we have been here before.

Notwithstanding my caution, there are some very positive signs. Fundamentally there appears nothing on the horizon that might shock the market into selling FML down. The POG appears to have cleared 1400 again and is set for another record (failure at 1400 is the caveat), middle-east problems are not seeing a flight to the dollar and FML has only good news to come.

The daily chart below shows that the maturity of this stock might finally be at hand. Tuesday's red candle is often followed, after an uptrend, by a sell off, be it minor or major. Similarly, candles like Thursday's big green one are often followed by a down day as traders take profits. In fact, the open on Wednesday did gap down but the weakness was bought - with good volumes. This rarely happens with FML. It appeared that, last week, the traders were outnumbered (not an easy thing with 2.8B shares on the reg) -it traded lower but any weakness was bought.








The weekly candlestick chart is more bullish. We have now had two consecutive weeks of 12 month high weekly closes. The last time this happened FML was knocking on the door of 8c. It's hard to argue with that.










If the SP behaves itself on Monday, the monthly chart might end February even more bullish. An unchanged close will be the highest close in almost 3 years. A close at 6.9 WILL be the highest monthly close in 3 years (since Jan 2008). This is important IMO because it means the SP has returned to a "longer" term trend at pre-SPP levels. Even when FML broke through 7 and nudged 8c in Dec 09/Jan 10, the monthly candle failed to hit 7c.









So, while I will not call it yet, there is strong evidence of a re-rating underway (finally). If the POG makes a record, we have no ugly surprises re: costs or production problems, and the market remains happy enough to buy any SP weakness - we could be in the middle the long-awaited re-rating right now. I'm not going to say my prediction for the SP, but if we get some significant drill results or the POG breaks through 1420, I think many will be surprised at what you will have to pay for an FML share - with or without a consolidation.


I won't be able to post for some time as I start a new job on Monday, so I hope my next post has an extra decimal point in the little box that shows the FML SP.

Cheers and good luck holders - particularly the L'termers,



C12