something is in the air.

If I were a betting man, and luckily I am, I would say that today's trading action points to the fact that the next drill results are on their way in the next week or two. Whether many in the market are just guessing this, the fact remains drilling has been well under way for weeks now, and we all know what happenned to the SP when FMS announced their first results from a mere two holes.

This run-up could also be attributed to Dr Russell checking out the new tenament very soon. Either way as a holder, it's all about higher highs and arguably more importantly higher lows (an increased floor under the stock to stop holders getting sweaty palms.)

So if a trading range in the .20's can be established without an announcement, that would give a very different platform to launch from as the drilling announcements pour in between now and December with three rigs on site.

As they say in the classics, the trend is your friend, and the reason I'm all-in on this stock is simple: sentiment. FMS happens to have great fundamentals so far, but that pales in significance to the buzz this stock continues to create nationally. (Sorry Brockman, RHI holders et al., but you just don't seem to cut the grass in this one area that truly seems to matter.)

This is a stock-MARKET after all, not an accounting firm. Risk is rewarded accordingly in this place, as is sentiment, or the story behind a stock. I personally believe the interest in FMS can be partially attributed to the fact FMS is quirky or unique: IE how many other stocks do you know that are IO explorers who were looking for diamonds and stumbled on what looks like a healthy IO resource right on their tenament. This great point of difference may add to its appeal. Think about the legend Twiggy is trying to recreate with Posiedon Nickel. It's all about creating a great story to sell the fundamentals.

I do mention those other iron ore stocks only however as they are in a category with FMS which despite wild share price fluctuations have one thing in commmon: bullet-proof fundamentals in the type of product they are commoditising.

Iron ore is for the moment at least, unarguably bullet proof, unlike copper, nickel, zinc ect. which have had their run, and even more unlike mortgages/banks, property/trusts ect. and many sectors under the pump at the moment (even oil's rally seems done and dusted at this current juncture.)

China is almost all that matters to iron ore right now, and with inflation just hitting ten percent there, their costs may be going up but so is their economic growth. It is very hard to have one without the other. (What happens to prices and costs for raw materials when the majority of a billion and a half people buy their first microwave or fridge, let alone apartment or car.) Think about it. That's an awful lot of steel. Look at what happenned to commodity markets when Japan industrialised 50 yrs ago- a 20 year commodity boom. China is going to make Japan look like a small market in a few short years if it hasn't already. The increase in prices I mentioned (for IO) is the part Iron Ore miners and explorers such as FMS are interested in.

So here's the equation: solid fundamentals being further proven up to JORC stage + wide public investor interest/excitement = FMS.

I rest my case your honour.