Post by
Chipshot2 on Mar 12, 2011 12:43pm
Great Entry Point
I wonder how many people have FS are their radar screen waiting for the perfect time to buy?
Let's consider the downside:
1) There is a fairly substantial rumor of a small PP to be arranged in the near future. Watching the shares trade for the last few weeks all indications are that it will be priced at $.15. My guess is they will only raise $300,000 so dilution will be slight. The share price has been held in check slightly higher than $.15.
2) First Star still has a lot to accomplish to earn the % ownership of the optioned properties.
2) General conditions of the market...what will happen next? Even though this has to be a consideration I'm not sure how much effect a general downdraft would have on a penny stock that has already bee beaten down.
Now let's consider the positives:
1) Drilling is about to start on the Alaska property LMS. While only 1000 meters is planned for the spring program that is 1000 more than most companies will be doing at this time a year. Weather looks favorable for the next 2 weeks or so.
2) The last news release also detailed other work programs being done on the property including looking at old core from 2004 and 2005 drilling that was not assayed. Indications from the last round of drilling indicate that there may be some decent grades of both gold and silver in these cores that, due to low prices of the metals back in 04/05, were ignored as the grade potential was not deemed worthy of assay.
3) Even with the small financing the stock still has a tight float.
All this will be done now leading into the planned summer drill programs.
So if this stock were on my radar screen and I saw I could buy a good sized position under $.20, why not take that chance now. Sure you could wait a couple of weeks but what will the price be then, especially if core starts to surface that looks promising?
Everyone makes their own investment decisions but from where I sit this looks like there is a ton of potential and timing looks right as well. Given the price today it looks like there is very little downside.
Full disclosure...I have a large position and everything written here is just my opinion.
Chipshot2