FER seems to have found its trading range support now at around...

FER seems to have found its trading range support now at around 015 cents

Resistance set at .03 obtained from the gap down from .03- to .015 set on 23/10/2009

Volume of 75 million x 2 has been traded within the last 10 days indicating most of the recent placement of 15% ( Aug 3 Placement ) has now been distributed and the (Sophisticated Investors) have now exited their 15 % placement this will relieve the downward pressure on the S.P .

Majority of volume went through at the highs of .029 to .036 (For a nice 10 bagger this should cover the cost for the rest of the placement of 496,428,571.and Options which need to be ratified coming up at a soon be to announced General Meeting)

According to the website of Capital Investment Partners, who are financing the placement. (CIP) was established to provide specific corporate advisory services to Australian based companies. Further investigation of the website shows numerous cap raisings specializing in Coal and iron ore project companies.

Some of their RECENT placements for clients include SDL, CPL, MUM, JAL, EQX, GWR etc.

Currently FER is now at the base of their trading range and allowing for T3 to finish exiting Today a new Uptick movement should begin shortly with a near term target of .03 cents resistance.

Due to A General meeting which needs to take place first to ratify the upcoming placement IMO I feel a positive announcement will be released to the market shortly after the General Meeting my guess is an IRON ORE or COAL project judging by the background of the new directors and CIP experience, moreover one of these hot sectors will facilitate the distribution of the 500 mill shares into the market for Maximum price distribution ., we may get some hint before the General meeting of FER intent to move into new areas of business helping the SP to move to current resistance of .03 cents

Off course I could be completely wrong and FER may continue with their Hair test program for cancer as mentioned in the recent Cap raising Announcement, but with the resignation of Chalmers and Dillon who were both specialists in the medical fields and assay testing FER now has no Medical Experienced Board members and it is highly unlikely FER will continue with this direction.

Another important point to consider is FER has about 650 mill shares now on issue at present 80 % of this total is held and controlled by top 20 holders leaving around 130 million or 20 % shares tradable in the market this is an extremely small amount in the market allowing for appreciation and control of the SP easily.

In Summary FER in IMO is poised for a major rerating and change in direction focused towards the coal or iron ore resource sectors, and with a very small free tradeable share float at least until the General Meeting FER looks set for a quick increase in the near term .06 cents and midterm depending on the SP structure and new deal announced most likely 15 cents which is the Aug 2009 Resistance point.

Short term patience required for maximum gains however.