Everyone is probably a little concerned about where SPQ commodities, gold, nickel, and the Ring of Fire will go in these turbulent times. Here are some of my thoughts, which might be helpful for us all, and especially anyone new to trading and SPQ.

Traders talk about "fundamentals" all the time. Here's a quote from Investopedia:

Some of the indicators commonly used to assess company fundamentals include: cash flow; return on assets; conservative gearing; history of profit retention for funding future growth; and soundness of capital management for the maximizing of shareholder earnings and returns.

http://www.investopedia.com/articles...

Do any of the above indicators apply to SPQ? Clearly cash flow and return on assets (ROA) do not, at this time. These are very important fundamentals. But SPQ is an EXPLORCO (exploration company). As such, it has no cash flow (except inward). It spends money - your money since you're an investor). SPQ is therefore a speculative play and there is greater risk when you invest in this type of company.

Other indicators do apply more directly to SPQ at this time.

"Conservative gearing". SPQ is no Bear Sterns. In fact, out of all of the McFaulds' juniors, SPQ may be the most conservative of them all. Neil Novak is the reason. My reading of Neil is that he is an old time prospector type of CEO. He does not make rash decisions, and guards company information.

"Soundness of capital management" SPQ has $6 million from private placements (PP). $1 million is targeted for the present drilling on the Freewest Option. Neil is a firm believer in joint ventures (JV). The drilling on the Freewest Option is a JV between Freewest (run by his good friend Mac Watson) and SPQ-KWG. JVs spread risk while getting the job done - that of drilling into a MMS anomaly with a strong potential of PGMs (platinum group of metals). If Neil strikes here, we should have a good return on investment (ROI).

What about the direction of gold? Although it's is in a bit of a free fall at the moment, human beings covet the shiny metal, and there is actually a short supply at the moment. Moreover, the big gold corporations of the world e.g., Barrick, Goldcorp are having problems maintaining production. Most "knowledgeable" people are predicting gold to hit $1500 or possibly $2500. The strong fundamentals for gold are still in place.

And what about base metals? Clearly the US is in recession, and the use of base metals will be curtailed somewhat in the area of housing. But with the cheaper US greenback, manufacturing in the US will gradually ramp up and become very strong once again (2009-2010). And the economies of China and India aren't going to go away any time soon. So the fundamentals for base metals are still strong.

I like the future for SPQ and the other juniors at McFaulds. The geology is just starting to be understood and tapped. Drilling by SPQ-FWR and Noront continues. Upcoming visuals, assay results, news releases (NR), and 43-101s are fundamental to this business, and I think they all will potentially bring strong investment gains to the investor willing to take some risks.

Continue to do your own due diligence, and best of luck.

Snug