Thursday, January 28, 2010

Fronteer Development Corp (FRG) ( an observation

On Jan 25th I posted on Fronteer Development Corp (FRG)( noting a decent news release and the share price pop it got as a result. since then the stock has managed to perform badly, dropping by about 10%. Dem's da breaks. I like the stock, its story, its assets and its future and have skin in the game here, so the drop is on my mind...not worried, just wanted to know a bit more about why it should perform this way.

So here's a thing. Check out the year-to-date chart on FRG and we see that......
......every time it's released news to the market this month, the price has performed well. But every time the news is incorporated, the PPS has dropped away afterwards. To make it easier, here are the links to the NRs on Jan 6th, the second on Jan 6th, then this on Jan 11th next this one on Jan 15th and finally this on Jan 25th. A fairly large amount of significant news for a single month.

What to make of this? Well, it does point to the general inertia in the gold junior sector, but it also says that FRG has plenty of good news to feed to the market and when it does that feeding, the market likes what it reads. All in all, it adds up to plenty of short term trading opportunity for the nimble amongst you, I'd say. Personally, I'm good about simply holding through this choppy season...but that's just me.

DYODD, dude.