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FMJ - Fortis Mining

Discussion in 'Stocks 0-H' started by Miner, Dec 15, 2010.

  1. Chorlton

    Chorlton

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    Anyone got any ideas as to why there is such a fall occuring over the last few days? Volume being traded doesn't seem to reflect the large drop we are seeing which is a little strange IMO.

    Although the last RNS didn't offer anything exciting, was the Mrkt expecting something more positive??? :confused:

    All comments welcome....
     
  2. adobee

    adobee

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    I have no idea.. but then again my whole portfolio is suffering similar losses across the market .. I think there are alot of people loosing confidence and pulling out (not with fmj but the market in general).. GTE is the same down to about 37c from 56c ...
     
  3. Chorlton

    Chorlton

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    Hi Adobee,

    Can you offer any insight here....

    In one of FMJ's recent announcements they wanted to raise $16million by issueing 10 million shares at a price of 1.60. With this in mind, I assumed that 1.60 would then become a new support level.

    Given that we are currently trading at around 1.00, how does this effect this new issue of 10million shares? Why would anyone want to take them when they can theoretically buy them at market for around 40% less? I know an order of 10million would be difficult to fill at that price but you know what I mean.
     
  4. Country Lad

    Country Lad Off into the sunset

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    It is worthwhile to keep up to date with all the news about all shares you may hold to get a feel of why the market sentiment may change or is changing so you are at the head of the pack not following.

    The announcement of 19 May was a bit over the top and the share price fell off after the initial reaction. In this market the announcement on 10 June indicating about 16% of their shares come out of escrow could be a negative. Then there was quite a bit of rumour around about Kazakhstan which no doubt would cause more people to take the opportunity to sell because all does not appear to be rosy. The Kazakhstan issue was confirmed friday, (more selling), absorbed over the weekend, with the subsequent 25% drop today.

    There is a lesson here. Companies with a small number of shares on issue like FMJ are good when the news is positive but shareholders need to be diligent because any bad news can cause selling into a shallow market with the resultant over reaction and "sell at all costs" like we have today with the further 25% fall in share price.

    Cheers
    Country Lad
     
  5. alexc2005

    alexc2005

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    Wowwwwwwwww

    50% in 2 days- impressive stuff.
     
  6. derty

    derty

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    The main drop down to $1.00 on June 20 was due to someone dumping their shares on market due to a margin call.
     
  7. Chorlton

    Chorlton

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    Out of interest, how do you know that?
     
  8. derty

    derty

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    I was in West Perth earlier in the week, you see a lot of people on the street at lunchtime. I ran into someone who had been speaking to someone from Fortis.
     
  9. adobee

    adobee

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    I cant get a margin on FMJ ...

    price rebounded.. I am not sure what the storey is at this point ..
    I am seeing big swings in alot of shares due to market sentiment and people wanting out at any price ..
     
  10. derty

    derty

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    There is no reason for Mr Guy from Fortis or my friend to be telling porkies. The seller had a margin call, he doesn't have to have FMJ on margin to be selling them to meet a margin call.
     
  11. alexc2005

    alexc2005

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    So- Good buying then :)?
     
  12. Country Lad

    Country Lad Off into the sunset

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    There may have been a margin call on that day but I doubt that it alone was the cause of the fall. It was most likely the UBS action.

    Of the 481 total trades that day, UBS were on the sell side for 267 (55% of the day's trades).

    Looking at the UBS 267 sell trades:-

    257 were for less than 1,000 shares;
    39 were for 51 to 100 shares;
    55 were for 50 or less shares.

    Except for cross trades for the small amounts, they were on the buy side twice only, one parcel of 15,000 and the second 3,978 about 2 hours apart.

    Cheers
    Country Lad
     
  13. adobee

    adobee

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  14. breaker

    breaker

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    FMJ seems to have stopped trading how can I get my money back

    Thanks
     
  15. skc

    skc Goldmember

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    You can wait, you can sell it off-market if you can find a buyer, or you can write it off eventually.

    It's only been ~6 months of suspension and it may trade again one day. The record on the ASX is 9 years+.
     
  16. breaker

    breaker

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    Thanks for that

    9 years LOL
     

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