The best source of new FDR investors? Or, to put the question differently, how fast does the hot money slosh around our little sector? By that I mean, who better to buy a penny exploration stock than someone who just crystalized a double on a similar stock? The perfect, newly-cash-rich potential buyer. If my reasoning is true, that compounds the positive effect of our last 48 hours of good price action.
Say FDR has another $1 million worth of potential short-term selling to come. Weighing in the balance against that prospect, we may shortly have buying-pressure from some hot money. How much hot money? A portion of theoretical profits of roughly $2 million from the last 4-6 days of trading on one of our fellow explorers, currently possibly in the process of some serious re-rating.
How big might our portion be? There are only so many hot explorers at any given moment. To attract the hot money, candidate companies require a threshold level of justifiable anticipation based on the expected impending arrival of good drill results. And that describes FDR to a tee.
Glancing at the results released this morning, it appears the two new notable intervals were at least 50 meters apart, as measured along our property’s surface. One appears to be lodged up alongside the first good interval from the July 27th release. A nice confirmation of those earlier results. And the pending (drilled but not yet assayed) holes are beautifully spaced out for another 100+ meters further south-east from there. Can’t wait to see those in 2-3 weeks.
So, when that hot money warm-front meets the cold air of our FDR sellers, the turbulent weather generated might give many of our sellers pause… enough pause to allow our stock to break decisively above $0.45. Too bad these kinds of questions cannot be reduced to equations… but then that would take a lot of the fun and magic out of this game.