| #3833 - Monday morning thoughts |   |
Good morning. The overseas markets are for the most part a sea of green this morning. The $US is showing strength which in turn leads to weakness in commodity prices. Nothing much on the economic calendar to sway investors, but on the bright side, futures are pointing to a positive opening.
Back in McFaulds Lake the chatter on the boards is predictions of assay news this week from NOT. Many of the perma bulls are predicting new 52 week highs when the assays results from DE2 are announced. With a close on Friday at $4.75 the market is telling me not to expect much from these new assays. It certainly would be a pleasant surprise if NOT released barn burner assays and put McFaulds Lake back on the must own list of investors. However, I'm still standing on the sidelines on NOT, holding some freebee shares but will wait until actual assays before taking the plunge. The thing I fear the most is how can DE2 assay results ever live up to the results from DE1? And, if DE2 doesn't deliver DE1 results, will investors be disappointed and sell the stock off? The safe way to play this stock is buy on a sell off if the DE2 results disappoint, or buy the stock on the open if the assays are very good. Being long and hoping the DE2 results will be good, is a total crap shoot and will be painful if the assays come up short. JMHO
PRB's share price keeps inching up as we get closer to the actual drill date. Being in such close proximity to DE1 I believe this stock will have a big speculative run once the drill bit hits the property. The smart play with this stock right now may be to take a position now then sell half into the run once the drilling starts. "IF" they ever hit on their drill program, this stock has potential for a 10 bagger with the low outstanding share count. Also of note is there are assays pending in the lab from outcrop samples where they will be drilling. These assays come back good and it should just add fuel to the fire as investors place their bets in anticipation. The risk/reward is looking very good to me on this stock. JMHO
FWR/SPQ should be releasing assays from their JV shortly. The first set of assay results were very positive and any follow up with good assays may just be the spark that finally catches investors attention. Very strange how these stocks have sold off after the initial good news. Perhaps the market knows the next assays won't be as good as the first set. If this isn't the reason then these stocks may be the bargains of McFaulds Lake. With so many irons in the fire FWR looks very cheap to me at current share prices and SPQ isn't far behind it.
Hopefully today is the day for NOT assay results. Any further delays and I would expect NOT is just trying to buy some time here. Which would lead me to believe the assays will disappoint.
Best of luck to all McFaulds Lake investors.
Al
