IS FEO the next FOM
Hey Everybody
Just reading a lot of doom and gloom as we reach bottom.
Want to share an experience with a company that in some ways is similar to FEO.
There is company that had a mining hall of famer (Pierre Lassonde) as a big shareholder and here we have Frank Giustra (and others). So these people are wise and are known to make money.
The company was looking for a strategic investor and the stock was trading for around $0.12- 0.20.
The NPV of the company was about $300 million at the time yet the stock was trading for around a $15 million market cap.
That stock found a key investor and the stock went from $0.15 to $2.75 plus. That stock is Foran Mining. You can see the story and the ticker is FOM.
The difference here is like many posters have noted, that management may be wise, but are they really putting in a major effort here ?
The leader of the FOM story was really trying to tell the story and was always somewhere doing interviews and pumping the story. And congrats to him for the rewards.
I think as well we (shareholders) see not a double or triple from here. But really if all the drilling and tests are accurate. And the environmental and First Nations agreements can be completed or at least meaningfully initiated. Than this stock could be a 20 bagger from here.
But again as I mentioned in a different post, when this starts to move. If you sell at $0.20 and it goes to $1.50 or beyond - you'll have missed the boat.
I'll be a "bag holder" if this doesn't pan out. But I'm not in rush to sell. So if it takes 5 years or more. I expect the returns to enourmous. And would love to add some shares at these levels.
The fact that insiders are buying and they are keeping the lights on to me tells me that things may not be as bleak as they seem.
Look around at other companies in the same boat. Getting money is getting harder and harder. And the price of money is going up up up. An absolutely terrible overhanging cloud when you need the enourmous funds to get an Iron Ore project going.
But in most likelyhood this will be taken out or a big chunk purchased by an Iron Ore Major.
Unless the Feds decide to get into the Iron Ore business ? :)