Thursday, October 22, 2009
James Bay soap opera in the FLATS
The saga continues as FREEWEST [ FWR.V ; US Pink Sheets FWERF - OTC] stock posts strong formations in spite of declining market liquidity.
Cracks continue to open in the facade of Noront's already weak Stock Only hostile bid for 2/3's or more of FREEWEST's stock. At this point FREEWEST's is .53 cents, at the days high, while the best NOT's stock can do is 1.77, which translates to
a 20% discount reflecting the market's skepticism of the offer and continues to drive FREEWEST higher.
Distortions, misleading data, data omissions, half-truths are all deployed in attempts to get this offer into the RED ZONE but so far, it seems like 3rd Down and 10 yards to go for Noront, as FREEWEST has not even used their First String for Defense as yet.
My feeling is that since the miners were displaced from Noront by a hedge fund coup which we see often, like misguided Carl Ichan's, who are looking for a theft in order to make a qwk buck instead of the honest hard work it takes to create mineral reserves. Noront gets a thumbs down for that. Considering that Noront's stock has fallen from from the $7's in late 2007, and will have to break $3.00 to the upside to break its downtrend, I think they are in a lot of trouble.
The reverse appears to be true as FREEWEST develops its deposits of Chrome, PGM, and precious metals in its half of the James Bay Lowland Camp, as it is climbs back into price zones going back into 2006
The likelihood is that when they complete their NI 43-101 studies [ Canadian Truth-In-Mining Law mandated ][ compares apples with apples ], they would be unattainable by anyone but a major,and I think Noront hopes to snatch them before they can complete this, which by the day is becoming more and more unlikely.
We have long held positions in FREEWEST, having evaluated both years ago, and entered FWR seeing a good multi-Dollar upside target. Nothing has changed.
Good Luck, this is not for everyone but IMO has speculative potential.