Hi guys,Couldn't help but post on this one. So Sellbuybill...

Hi guys,
Couldn't help but post on this one. So Sellbuybill bailed out at 5c today? Really mate? I'm sure a few technical experts would agree with me here, but with RSI looking oversold and both 200dMA and daily bollinger bands for support, 5c is a buy in my book.

While I'm here I might just add my 5c to the FML discussion board. Here are my reasons for regularly trading FML as opposed to having any faith in it as a long term investment:

1. ISSUE: There are far too many shares on issue
Reason: With so many shares on issue, there are a huge amount of small holders swalled up by shorters to almost guarantee sideways price movement over time. Further, no fund manager or insto would buy into a 'penny stock'.

2. ISSUE: FML is a low grade gold producer
Reason: Say what you may, the high gold price is not exactly high at all considering the time value of money, exchange rates, etc. Just because share prices have boomed in other gold producers, its not a given that FML will see days of 8c.

3. ISSUE: Poor quarterly performance (past two quarters)
Reason: Short term track record talks. This quarter is talked to be the one that turns it all around. But, until you can string together 2, maybe 3, good quarters, you wont have a big buyer interested.

My 5c take - I'll have a buy order in at 4.9c tomorrow, with a stop loss at 4.7-4.8. Come january, positive announcements should see 6+, but solid resistance will really be tested around 6.5c, but will be interesting to see if volume can push through this resistance level. Again, perplexed by someone wanting to sell at 5c...