IKN

Thy sin’s not accidental

Fortuna (FVI.to): In the end it took three days

In IKN80 last Sunday we took time out to examine the net quarterly loss posted by Fortuna Silver (FVI.to) last week Friday, checking on the reasons and paying attention in particular to the hedging/derivatives loss posted and noting why that should be so. Here’s how the note ended, final paragraph excerpted:

“….to answer one repeated comment in the mails received, for sure it’s not the kind of headline number that wins friends and influences people. Yes, it may cause some sort of selling pressure early next week from those people that prefer to react to headlines. If that happens (I’m not sure, stuck as I am with a headful of fundies, but people writing in seem to think it’s a strong possible) I’d just consider it a “buying opportunity”. So with permabull newsletter writer’s first cliché out the way, let’s move to another hackneyed phrase and say “keep your eyes on the prize”. FVI is, in the considered opinion of your author, still way undervalued on the near future of its San José project and that hasn’t changed a jot. Caylloma is performing well and is a cash cow. The books have hidden that somewhat this quarter, but don’t let accountancy fool you…..”

And here’s the five day chart:

Yep, you too could have picked up a whole bunch of FVI in the same way as IKN Weekly subbers did in the $3.60 range (I know cos they’ve told me). All you needed to do was to wait until those people who buy into the stock and have no idea about how the read a balance sheet got nervous, then pick up their shares….thanks, greenies!
DYODD, dude.

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