Hi Warnie,I have been looking for a downside and cannot find...

Hi Warnie,

I have been looking for a downside and cannot find it.

It is notable that FDL did a very comprehensive presentation to Brokers on Monday 10th Dec (which is actually what prompted me to start buying) re the prospects for its tenement and on that date the SP opened at 7.3 and closed at 8.3 with 149M traded. No more has been said by the company about the tenement since then. On Thursdsy 13th Dec the SP opened at 7.9 touched 10 and closed at 9.8 with 255M traded. Between 28th Dec and 2nd Jan (3 trading days) the SP opened at 9.3 and closed at 16 with 500M traded over those three days.

What can we conclude from this? The way I see it is that other than the impact of the first announcement on the 22nd Nov re the identification of the iron ore target which caused a revaluation of the company the real action did not start until after the broker presentation. This suggests to me that, as the brokers put the word got out, a lot of buying has very likely been from the clients of these brokers following their broker's recommendation.

This is why I started buying. I noticed the price spike, did the research and bought. I had never even been on an HC forum at that stage. The broker presentation given by FDL MD Dr Kevin Wills is available on the FDL website. Dr Wills also recorded an Audio Broadcast on the 29th Nov.

The only negative, as you say, is that they do not find any Iron Ore. When I go through these presentations and the maps and look at what FMG have already identified in their adjacent tenement IMO the probability that there is no Iron Ore there is very low. Hence to me the downside risk is also very low.

I came to this conclusion before a I had read any of your posts and I believe that most people who look at the information for themselves will come to the same conlusion.