FMS- Is it a trade or an investmentIn my blog I have always remained positive and long for shares of Focus Metals, and that has not changed at all. For some time now, but more so recently, I have started to notice that the same posters are experiencing what some other posters have eluded to as "wild mood swings". To be realistic, I would have to agree that there does seem to be a wide variance in the sentiment by certain posters. That brings forth the question of which particular strategy does one view to be the correct way to attempt to make money from Focus Metals' shares. The answer is relatively simple in my thinking, since both trading and investing are correct.
There is, however, many differences also. First of all, let's not forget that Focus Metals is a company which is progressing towards production, and although many people here seem to think that Focus Metals should be capable of "just making it so", this type of expectation is completely unrealistic. To make my point, I would ask each and every one of you, in all seriousness, when was the last time you timed an entry into a company such as Focus Metals and had it go immediately straight north and never look back. You know the kind of stock where you buy in because its a penny stock and in the matter of a few months you have reaped many times your investment. This is an investment in my mind, and as such I have no ill conceived ideas that it will go into the stratosphere overnight. Long-term I firmly believe this stock possesses more potential than any stock I know in a comparable position.
There are those who have been on this board for a considerable amount of time, and as of late are pushing the idea that Focus is only worthy of trading. I do not for a minute believe this, although I will admit a person can potentially make some extra money doing so. I do believe it's risky, because it would only take one or two of the appropriate news releases to send this stock high enough that the huge earnings one could have experienced, will become somewhat out of reach. So to say that trading is not a way to make money would be incorrect, but I would say a person would definitely not want to do this with any part of your core position.
The sheer number of venture stocks available compared to those that make it large is obviously quite different. For anyone to think that they can buy into a company such as Focus Metals and become ultra-rich overnight, so to speak, just does not even make sense. Especially considering the background of some of these posters, some of whom I would expect a much higher train of though from.
Do I view Focus Metals as a company with probably the largest amount of potential of any "penny stock" I have experienced in recent years? ABSOLUTELY!!
For a lack of better comparisons, I will use the likes of the gold discovery made at Hemlo, Ontario. I remember watching that progress from the days of a couple old white-bearded men living in tents, in the winter none-the-less, and how long did that take to become what it is today. Anyone who bought into that when it was a penny stock knows full well the point I am making. For those who think they need to trade, it is your decision. Unlike this example, Focus Metals has already produced it's 43-101, and we have seen a MOU signed with one of the most prestigious Universities involved in the material science research field.
I can only assume that those who are so quick to swing to negativity are either way over invested, which will undoubtedly bring this out of a person. I suppose if they were trying to incite some selling at a specific time to hopefully help themselves to achieve greater gains from trading, that would explain the "mood swings".
For those who are willing to view this as an investment, like myself, patience will pay off in my opinion.