Al and Rick Honsinger of Formation Metals answer questions from listeners
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Thanks Scott,
Big Al
Looks like the “Korelin-effect” made itself known on the stock today, Wednesday…volume over 800,000 shares! It certainly has been on a downslide since December (so have some excellent gold mining stocks, so it’s not alone). Today’s bump might help define a bottom. Like American Manganese or Molycorp, Formation are one of the only ones doing what they do “locally”. Rick sounds like a good guy, focused on the work and knowing the value will come as he succeeds.
I dislike saying anything negative, but since the listing is only on TSX and not, say, the AMEX which seems to be coming the de facto venture exchange in the US, that does slow some liquidity, and keeps some big players out because computer based trading algorithms don’t work well with pink sheets (making it harder to pump and dump… maybe that’s a good thing). I think that’s another reason mining companies have had this slow decline since December…the big money cannot always find enough ways to get into the market. There’s only so many NG’s, REE’s, MCP’s, XG’s, etc. out there. It’s slowing changing though. Not that the above would stop me from investing. I haven’t had the time to pull the reports yet, but look forward to seeing their cash-on-hand vs market cap, as Rick noted.
Thanks for the extra info on this Al.
Great segment Al and Rick. This has given me a better understanding of some aspects of the company. The only thing I thought missing is what is the great competitive advantage of the company beyond being the only cobalt producer in North America?
Are they a low cost cobalt producer compared to other companies in the market place? Do they have great possibilities for off take contracts or great potential demand from end users in the U.S.? Also is the price cobalt at or near all time highs and is the demand for the metal increasing? What are the industrial and consumer applications of cobalt?
FCO.TO Formation metals is trading[Nov.01/11] @0.46 per share-near a 10yr low.I believe this is an excellent time to purchase shares.It’s trading at a 25% discount to their CASH! Long FCO!
this morning i found Kinross KGC selling down and gold up slightly . I bought some and 4 hours later made a nice small profit. most gold stocks ended up today . i have 2 lists of gold – silver stocks . good trading to you all.