FDR weathers the stormI’m not exactly Mayor of Founders-ville, but after a day like today, and in view of my ongoing optimism, I wouldn’t want my silence to be misinterpreted. I’ll keep my remarks brief.
Our stock was hit with the twin blows of gold breaking support at $2,000 and a setback for the Nasdaq / Dow. From a charting perspective, we held at the 8-month uptrend. Relatively light volume. Doesn’t mean we won’t break down tomorrow, but our ultimate value proposition remains the same. A rich and growing gold deposit.
It is not a requirement for retail investors as a group to always love FDR. They will not be directly consulted when the major gold producers court this company for Antino, or when institutions anticipate that event.
We are in the happy position of a lower gold price not necessarily hurting us, but a higher gold price definitely helping us. So even were gold to somehow skulk around $1,800 for a year, long term cash flow projections for our property would not be impacted drastically.
Somehow I doubt the Nasdaq pullback will last. Too much hot money chasing the tech giants.
If FDR’s path to $4.00 and beyond is taking an unexpected (by me) detour, I’ll just have to be a little more patient. At least no one will be facing margin calls because of our stock’s decline.
Like Buffett says, short-term, the market is a voting machine. Long-term, a weighing machine. As we all know, it is not hard to lose the voting battle at the margins on any given day.
Glad no assay news came out today, as its effect might have been largely wasted.
Sleep well, everyone.