RE: RE: RE: Good news for FNI investors FNI's technical chart is not the most dynamic one, but has shown some consistence over the past. Reversal patterns can be identified, such as I did in this case, when short term and longer term averages cross each other similarly in light of other technical indicators. In the case of a bullish reversal pattern, after a period of decrease in the stock's price, usually occurs a change of direction of the stock's price, volume, average number of trades, volatility, for example, which turnout higher, bigger, better and faster...Of course as long as the company is doing well and better (but sometimes not, but don't try catching those falling knifes). There are many other technical indicators based on those variables.
What's good for FNI investors is that the overall short, mid, and long term variables are all crossing each other and swinging into a bullish reversal pattern, and moreover because FNI is fully backed by its lenders and its upcoming full production at Lockerby mine. But mostly, the company should me meeting its production target anytime soon, and even surpassing it. Since they haven't yet filled a full year of revenues with the ongoing Lockerby mine, they should be making quite a considerable amount of profit as of now already - which explains otherwise why they were given $5 million extra by BNS on their $10 million credit facility, and the fact that their lenders reported a $20 million indebtedness restructuring that will be held till march 2015 to assure they make it through.
They announced an outlook on April 2nd stating they were to reach a total cash production cost between $6.10 and $6.40 per pound of nickel produced in 2013, and they plan on producing 10 million pounds of payable nickel yearly. At a $7.50 average sell price per pounds of nickel, for the least, that makes an average of $12.5 million profit from their sole Lockerby mine nickel production, and I'm not accounting that they will sell about as mush copper as well... generating even more cash flow and working capital to grow bigger.
So, as I do, you should be expecting the company to announce anytime soon that they reached their full production target, at a reasonably lower cost, generating operational profits. Like I said, why would they obtain all those actions from their lenders right at the end if their first quarter? Smells like a milestone achievement to me.
What we really need in the end for FNI's stock price to shoot up, is a bunch of penny stock traders willing to get the stock back on track, which can be easily done with very little money from a professional trader's perspective. If you take all the information given here, it's a matter of days before this happens.
