Advanced Explorations Inc. ADEXF

RE: Change my mind

[rpdeluca]

If you look at the trading over the last while, there are 2 players that have sold quite a bit.  Stonecap and CIBC.  Many of these institutions/funds need to get out at certain  points in time.  Sometimes timing sucks.  For whatever reason they want to get out (i.e. could be they don't believe the story any more, they need liquidity in their fund to buy other investments, they need to rebalance their funds) and they end up selling.  These funds sometimes need a "big" news release to generate huge interest on the buying side which in turn creates a selling opportunity (i.e sell into the news).  It's unfortunate but it's reality. 

AXI is starting to truly differentiate itself with many of the other iron ore projects out there.  Do not kid youself that the bad news coming out of the LT has hurt our stock as well.  The LT is not dead but there will be juniors in that area that unfortunately will not survive.  You've seen LIM destroyed, you've seen cost overruns Cliffs and now you hear about RIO selling their stake (i.e. costs upwards around $100).  Throw into that CN backing out of the rail FS and the perfect storm is now brewing.  I don't want to say i told you so but I've always pointed out that the LT has cost issues and rail capacity was always a concern.  I still believe somehow NML and ADV will survive out of all of this. 

There are two projects out there right now that don't have the issues I've mentioned above.  They are AXI and FEO.  I've kept a close eye on FEO and it has many advantages.  But one of the things that really scares me about FEO is the high tide that they are faced with where their port is going to be located.  I'm quite certain that the tide in Ugava Bay is the highest tide in the world so you can just imagine the amount of dredging that will need to take place and the challenge the ships will face as they have to try and load product.  Not saying that with today's engineering that this cannot be accomplished but it makes the construction that much more difficult. 

Behr you have to be comfortable with your own investing and nobody can force you to invest in a stock.  Hope you make lots of money

RP