#3640 - Friday morning thoughts

Good morning. The major overseas markets are for the most part up this morning as financial stocks are showing strength. Not much on the economic calendar today in the US other than revised Michigan Sentiment numbers. Commodity prices currently taking a hit on $US strength, which bodes well for the Dow and Nasdaq, but the Canadian indices are taking a big hit. This too shall pass.

Back in McFaulds Lake NOT continues to take a big hit. The weakness in commodity stocks is certainly one reason for the bloodbath, but there are other underlying factors. In the past Nemis has been a promo machine, every hole drilled they issued visual report followed by assays. They were drilling in a rich pod and all was well. Promo, promo, let the ring of fire song play on. This is where the trouble started. Nemis wanted to lock up funds for drilling for the next year or longer, so he goes to the market and does a PP. The PP is given to the bigwigs in the mining industry. All is well, however the promo machine was all of a sudden shut down. I would imagine on the advice of the new share holders. No longer is Nemis in rah rah mode. The drills move to the nearby anomolies and the faithful are no longer getting the rah, rahs. All is silent, week after week goes by and everyone is tight lipped, the faithful get impatient, slowly they jump ship and without the promo's no one is buying. The shorters catch on the game and see without news NOT's share price is going no where. With the lack of buyers the shorters are having a field day and hence the huge haircut in NOT's share price. Now the blame game starts. For those that still think NOT has the discovery of the decade in McFaulds Lake, just look at this as a buying opportunity. The promise of a news release today with an update from NOT management better happen or the share price may get a whole lot cheaper. JMHO

Word out of FNC is a news release today with an update on a much anticipated drill program. With the share price under pressure it is hoped this will stem the tide of the sell-off. Once again this news release better happen with some actual dates for drilling or this stock too will suffer the wrath of its shareholders. I don't think investors will be too pleased with any more "soons" from Peter Smith.

The rest of the McFaulds Lake stocks appear to be weathering the storm other than PRB. PRB is selling off due to the fact investors now know it will be the end of May before they start drilling their McFaulds West property. So expect some weakness from the stock but look at it as a buying opportunity is my best guess.

Best of luck to all McFaulds Lake investors.