FDR: Friends & Family - Part IIYesterday I suggested telling carefully selected people in your life about FDR. I said this could be beneficial to them, and also that you might be surprised at the strength of your personal feeling of satisfaction or pride from convincing someone close to you to buy.
Yes, I did gloss over the most important part of that equation: our personal self-interest. And if we all didn’t have a fairly strong determination to make money for ourselves here, we wouldn’t be in this stock.
We absolutely want fellow shareholders to be good-hearted people who desire to join us on this happy journey. We don’t want connivers who seek to play games of any sort with the stock price or who in other ways try to hurt our common cause. Ideally, we will attract people over whom we already have a solid (and justly earned) amount of influence. Friends and family fit this bill. The more of them who buy, the less shares available to be held by sharks.
Now, before this starts to sound too much like some kind of Ponzi scheme logic, remind yourselves how FDR, unique among most publicly traded companies, is being built from the ground up with a buy-out in mind. And it is probably fair to say the potential acquirer, Newmont, Barrick, or numerous mid-tier gold producers, has already been feeding each new set of drill results into their valuation models.
Thus, what is the likely end point for any investor who buys and holds? A price higher than he paid. Regardless of when he bought in. Just like the shareholders of Great Bear and many other successful gold explorers in the last few decades.
Sure, every new buyer recruited by existing shareholders pushes our share price a little higher than it would otherwise be. And as expected, the majority of these benefits accrue to longer-time holders. This is the same universal principle as compound interest. Better to start saving young. And better to start buying FDR before it become fully obvious to everyone that we’ve got the best exploration project going.
The faster and higher FDR’s stock price climbs, the quicker will come any potential buyout. Is it messy to force the buyers’ hands? Possibly. Could this lead to greater volatility? Probably. But almost like some kind of apparatus designed to generate power from the wave motion of the sea, the kind of corporation we own ought to feed on that volatility. We ought to be able to convert it into abundant energy… and a higher, quicker buyout.
For who really knows how much gold might lurk under Antino? There is plenty of hard science involved in our venture, but at least as much art and magic too, flowing from the hopes and dreams of FDR’s owners – current, future, and “final”.
Persuasion is perhaps the most powerful of the magical arts. It can be used for good or evil, but we all know which side we’re on with this stock. Go forth and practice some magic this weekend among your own inner circles. It’s time for us to let those deserving souls who don’t know about FDR in on our precious secret.