FDR wolfs down the CupcakeWhoever wrote today’s news release headline is having fun. Which is good. If our management team is winning and laughing at the same time, that’s a “benevolent universe premise across the board”, as a great philosopher once put it. And exactly what shareholders want to see. Or ought to want… you can’t please everyone.
Winning versus *expecting to win* (and then winning) is why people remember Babe Ruth’s “called shot”. Pointing at deep center-field before hitting his World Series homerun exactly there. Whether he was actually calling his shot is no longer material to his legend – the mystique it added was permanent from that moment on.
So too for FDR today, with another A+ rated set of assays. I suspect these cores came out of the ground while two drilling rigs were in action at Upper Antino. There has been just one rig there for a week now that the other has set up shop down the road at Lower Antino.
Naturally, I’m optimistic regarding what can still be accomplished at the Upper zone even with only one drill turning there. Because stitching together the other sub-zones around Froyo may not require much more drilling. And would be a master class in the efficient use of equipment if they pull it off.
Meantime, Beaver Creek and its star-studded cast of gold stock luminaries should give us enough extra exposure to prove the chartists right: FDR seems to have bounced off its lower trendline very nicely today. As I’ve said previously, pure technical analysis is a little beyond my area of comfort. But charting combined with devouring every cupcake of hard info / news plus any crumbs of commentary can lead to a very high level of confidence.
Did FDR’s stock price get ahead of itself? The market has given us the clear answer to that now. But could it have gone the other way? Absolutely.
And now, whether the Buese results have been delayed to let the full value of the Cupcake integration be seen and appreciated or for some other reason, the absence of the Buese core analysis was felt by the ticker tape over the last week. Can that all turn on a dime if some rich results come out next week? Of course it can. Or we wouldn’t all still be here.
I am still going to wait for the Buese figures before re-running my full valuation model, but today’s news probably added another $0.50 to the FDR buyout price. Or more.