what moves the sp?, page-3

thanks for posting that choo.

A lot of good sector stuff has been happening since start of Feb which has probably contributed to the share hike as well.

Since the start of Feb the gold price has gone up $80 in australian dollars- it hit $A14000 this morning.

That may not sound much, but that's worth $8m straight to bottom line for FML if the $80 gain holds for the next 12 months and FML produces its forecast 100,000 oz.

And maybe the gold price will keep going up- now that it has started. This middle east tension may hang around for a while longer.

The gold sector is strong too - the HUI (some gold share index) has gone up 8% since bottoming on 24 Jan.

The price of nickel has also risen 6% since start of Feb. Again that helps turn a moth-balled nickel mine into a valuable asset, again adding heaps of extra millions to FML's fundamental value.

Another possible catalyst for another new crop of buyers could be the official release of the half-yearly result.

Some people only pay attention to official profit results, not forecast ones, and the official results allow statistics like p/e ratios to get re-calculated.

Sunddenly some people will see FML sitting on an attractive p/e ratio compared to its peers.

And then another possible announcement that could lift the share price is one announcing a new substantial shareholder has emerged - and maybe it will be a respected fund.


I don't know that will will happen, but as someone else pointed out there has been an awful lot of big buying happening this last week or so.

FML is having a bit of a well-earned price retreat today, but there do seem to be a few more good reasons why its price might keep pushing upwards.