Gediminas Jasionis
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Formation Metals Inc. (TSE:FCO) (PINK:FMEWF) Shoots Up Tired of the Downtrend

by Gediminas Jasionis Nov 3, 2011
9fco_chart.pngFormation Metals Inc. (TSE:FCO) (PINK:FMEWF) stock has popped up significantly for technical reasons and could be of interest to risk prone bulls. 

FCO added 33.3% in stock value on Wednesday. The stock also recorded a 2.12 million trading volume, which is huge compared to the average turnover of just 312 thousand. It was one of the most active trading days of the past year for FCO.

FCO stock price had been hitting new 52-week lows for the past three months, thus the buying opportunity seems very attractive in this case.

However, it was a purely technical price bounce - the company had no official news to accompany the buying pressure.

formation_metals_logo.jpgThe company's underlying book value of $144.3 million makes it a very attractive buying target as their current market capitalization is mere $56.3 million. The unstoppable stock dilution is another question.

The count of outstanding common shares increased more than 2.5 times over the past year. The amount increased due to issuance of capital stock, but it also ensured their current strong cash position.

Formation Metals engages in the acquisition and development of mineral natural resource properties with focus on the United States, Canada, and Mexico. The company owns eight different projects ranging from exploration of simple copper to gold and uranium rich claims.

Comments (2)

1. mbrayden674
November 04, 2011, 07:06AM

Quotes :) I like Peter Grandich's blog and posts too, but I accept rather Gedimina's statement, that technical reasons rushed FCO. Recently, the company released, that :”The commitment received by the Company from BNP Paribas has terminated without the closing of the subject financing.”. The news may only support the stock rally and a furious rolling down of FCO.

By the way, do you mean that Peter Grandich has been involved in a FCO's promotion?

2. Guest
November 03, 2011, 02:08PM

Quotes The reason that the stock priced popped is due to a positive mention by Peter Grandich yesterday (interview & in his newsletter).

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