FXR - Fox Resources

[RichKid]

Okay folks, been watching this for a few months and now it's time to act for me.

FXR is primarily a nickel and copper play, currently producing and looking to expand. Has been tidying up some deals atm, all finished now from what I can see. Brett Matich, Managing Director is also the MD of Aztec Resources AZR and has some big international investors on his register. See co website http://www.foxresources.com.au for a broker report).

Capital raising led to some dilution which, as you will see from a chart, saw the sp trend down. It's now broken the downtrend on high volume and has settled above support at 45c. I reckon this is cheap considering where it was a year and go and with Nickel firming and recent transactional risks now dissipating.

FXR about to break 50c imo, June 2007 options FXROA provide great leverage, commenced trading in Dec 2004. Currently trading at 11c (all time high 16c), I expect it to go up by 40-50% in the nearterm based on the charts (but I've been wrong before!).
Intersuisse has apparently picked this as their junior nickel producer of choice- that was in January 2005 when FXR was above 50c, so even better value now imo.

With Nickel prices widely expected to surge this year FXR will provide great leverage. It's currently conducting exploration to increase resources and prolong mining operatons. Nickel operation take time to set up so getting into a current producer with more exploration upside ensures it can take advantage of high nickel prices before they start to fall in a couple of years or so.

Downside risk technically is a break below 45c but with current buy depth and volume it looks like the price is about to start the steady move upwards.

The Bulletin's David Haslehurst seems to like this stock (he bought it at 65c) some extracts on the FXR website under 'broker presentations'. I'm looking to enter because of TA trend backed up by sound fundamentals and a strong Nickel price which will provide added leverage in the coming year.

I'll post a chart later, any other holders?

 

[RichKid]

Re: Fox Resources FXR FXROA

FYI: Got my small lot of FXROA at 11c. Let's see if my theory in the last post holds. Still quite a bit of FXROA available, not everyone has quite cottoned on to the trend yet imo, a lot of time value left in these oppies as June 2007 is quite some time away. FXR has buyers appearing from the sidelines from time to time so I'll be careful not to place too much emphasis on a lack of depth but it does add to the uncertainty. The end of this week will see me richer or poorer as a result of Fox Resources...

One seller had a big parcel of the options up for sale at 11c, which is what has been supplying the market, the next seller is at 15c so there's quite a gap atm, buyers lined up on the other side at various levels.

 

[RichKid]

Re: Fox Resources FXR FXROA

Here are the daily charts. FXR has broken downtrend after last year's capital raising (dilution) and has turned around strongly rejecting lower prices and closing on high volume above what appears to be solid support at 45c. Candles like today's tend to signify strong moves in FXR, especially with volume behind it like today and the recent gapping. More of a price history would have helped a more definite conclusion, settling above 55c on volume would confirm this imo. Last price 51c, high 53c.

Extra leverage via FXROA (options June 2007), huge increases in the last week (understandably), a big seller has almost exhausted his/her supply on offer at 11c today, next offer is at 15c so this may jump real fast since buy depth is good and sell depth is relatively very weak atm. Resistance at 11c.

 

[RichKid]

Re: Fox Resources FXR FXROA

FXR has opened weaker, FXROA now at 11c buy and 15c sell, so big spread as that last parcel at 11c was taken out at start of trading. Most shareholders will wait to sell I reckon as sp recovers.
Forgot to mention that FXROA is exerciable at 75c so otm atm but approaching it quickly if this trend holds.

 

[RichKid]

Re: Fox Resources FXR FXROA

Weaker close today, still holding up there above 45c. Won't be surprised if this turns out to be a flag formation like in ERG this week.
An investor presentation to US investors was released today, a good overview for anyone new to Fox, might see US dollars flowing in as price graphs in the presentation suggest another Nickel boom is about to start (seems to be one commodity after the other in this resources cycle). We have to give this a few days to see how the price settles.

FXROA, sellers disappeared for a bit there, now ask price is at 12c, only one parcel atm. With drilling to start soon and activity hotting up sp should rise (as they usually do for junior miners at this stage of things).

Any holders out there?

 

[doctorj]

Re: Fox Resources FXR FXROA

Richkid,

I do not know too much about Fox and will look into it this weekend and advise you of anything important I uncover. Thankyou for bringing it to my attention.

 

[RichKid]

Re: Fox Resources FXR FXROA

No probs doc, hope you find it useful. I'm being very careful this year as any correction will see weak stocks hammered. I want to be in good fundamental stories so that the cash keeps flowing and the trend confirms its strength. Should be some broker reports floating around on FXR if you have contacts. Next week will give some very strong price signals on FXR imo.

 

[doctorj]

Re: Fox Resources FXR FXROA

Speaking of unknowns, do you know much about TYC?

It's appeared on my radar in the last fortnight and like you, I'm looking for longer term holds with good fundamentals to supplement my trades.

Apparently they have (and I quote) "a world class copper and gold deposit" in Pakistan. What world class means I haven't looked into yet, but Directors are calling $4/share value to the company. Looking to share information!

 

[RichKid]

Re: Fox Resources FXR FXROA

Not standing out atm, on my watchlist for a few months now but it's still just 'promising' not particulary cheap either imo, I prefer clear easy uptrends or breakouts so that dumb TA people like me can see em easily. PM me if you are really keen on TYC.

 

[doctorj]

Re: Fox Resources FXR FXROA

I'm keen on the fundamentals of TYC, haven't had a chance to sit down and look at charts just yet. Also after some insight on the soverign risk entailed in a mine in Pakistan.

 

[RichKid]

Re: Fox Resources FXR FXROA

I might do intraday charts for this to see how it looks in the next few days, might give us some clues on how to trade it. I missed yesterday's intraday chart so it'll be good if someone can post one here (for Mar9)- thanks in advance. I'll post today's one tonight.

 

[RichKid]

Re: Fox Resources FXR FXROA

A weak open for FXR but it's above support (huge buy volume at 45c) and slowly moving up again. Might be buying opportunities for those watching the breakout from the sidelines so we may see more activity soon.

 

[RichKid]

Re: Fox Resources FXR FXROA

Okay so no one seems to have posted an intraday for yesterday so here's today. Annct that drilling has commenced, results due as soon as something happens, which could be tomorrow or Monday or next Month! Nice build up , buyers appeard from sidelines after weak start, a stable finish, needs to keep going higher to rejoin pre-fall price levels.

 

[RichKid]

Re: Fox Resources FXR FXROA

FXROA has finally broken resistance at 11c, now 12c. With FXR going strong that initial high risk period is almost over. Let's see when this starts cruising.

 

[RichKid]

Re: Fox Resources FXR FXROA

Intraday for Friday.

 

[doctorj]

Re: Fox Resources FXR FXROA

Announcement this morning of hitting significant sulfides, but also a placement at 40c. Thoughts?

 

[doctorj]

Re: Fox Resources FXR FXROA

http://www.blackdogsbarking.com/content/insiderail/insiderail-imf21022005.htm

Thoughts?

 

[RichKid]

Re: Fox Resources FXR FXROA

Hi Doc!

You have some very odd sites out there in the West! I think the warning at the top of the homepage says it all, very odd.

Don't know why they're attacking Matich, he's with AZR too and we know how well they are doing. I'd rather follow Intersuisse (they picked FXR as a top junior Nickel play in January) than that silly website.

The placements and capital raisings are old news, see the anncts.
Each to his own I guess, if what that site says is true no one should be investing in FXR, obviously I think otherwise and so does the price chart. It's easy to get carried away looking at every source possible. I'm quite comfortable with FXR atm, especially now that FXROA is tracking the sp.
This is not a recommendation to buy, hold, sell or ignore FXR/FXROA. If FXR goes down the gurgler then that's just something I'll have to cop using my stop losses.

Each to his own. Thanks for mentioning the site though, obviously lots of crooks out there in mining too.

 

[doctorj]

Re: Fox Resources FXR FXROA

I don't recall how I stumbled on that site, but I check from time to time for anything they might have heard.

I don't understand their position with Matich, but I didn't know he was also involved with RRS. I'd be interested to hear why he left.

 

[blackdogsbarking]

Re: Fox Resources FXR FXROA

Q. What do P. Ryan and P. Matich have in common?
A. They are both Ex-Directors of Range Resources Ltd.
AND
They have both been handsomely paid for their activities.

Q. What do P. Ryan and D D Millar have in common?
A. They are both Ex Substantial shareholders of Range Resources Ltd.

But more importantly they all came together for a brief moment in time with a common purpose. It was a brief encounter but not so brief as to prevent them getting all of their agenda items through.

How did P.E. Ryan and P. Matich's paths cross?
What common interest bought them together for that brief but eventful moment in time?
Was it a common love of golf?
Have they shared a corporate box at the AFL?
Are they both blue water sailors?

It gets alot more interesting....