Ronto...

Numerous Canadian SPQ investors have probably taken advantage of tax loss selling so we've seen the SP dip to 2-2.5 cents. One can't blame them for doing so, if it is advantageous. As one investor told me in a PM, he's worth more to his children "dead" now because his life insurance value tops his equity portfolio value. So any advantage should be taken.

I honestly think that any discussion about investing in Spider Resources should be prefaced by the question "What is my risk tolerance?" If we used a tolerance scale of 1-10 with 1=no tolerance to 10=I'm insane, I might suggest that any investor with a tolerance of 7 or greater might want to invest. Clearly, SPQ is a high risk, high return investment. Many would suggest at this time, SPQ is a high risk, low return stock. This is not investment advice, just my thinking.

As Kelsee has mentioned in a post, Spider Resources has identified a wealth of mineralization in its ROF land holdings. Whether the general market sees it this way, or even needs this mineralization, are very big unanswerable questions. Given that the world is unlikely to stop manufacturing goods and materials over the next few years, it's probable that minerals like nickel, copper, gold, and chrome will all be needed. Our global economy will probably continue to dictate this need. So the location (geography, country) of these minerals might play a role in any future investment in the ROF. Needless to say, Spider Resources assays has shown good quantities of these minerals plus more.

Given what I have gleaned from my personal discussions with Neil Novak (CEO), the 2009 Spider Resources corporate strategy is defined at this time by one word: chromite. Neil believes that North America (translate = USA) needs a ferrochrome source since chromite/chrome/ferrochrome is a strategic mineral/metal. This is the reason for the investment in a 43-101, which will be written by an international firm, focusing on SPQ's chromite drilling on the Freewest Option lands.

So if you're going to invest, reinvest, or maintain your investment in Spider Resources (IMHO) at this time, you have to believe the chrome story. That doesn't mean that SPQ is a one horse pony (so to speak). It has other JVs, and it clearly has other minerals. But until the global economy starts to move "north" (pun intended), the focus will be chrome.

I personally think this is a smart, responsible corporate strategy. Neil doesn't want to do a large private placement at these ridiculously low evaluations. (Remember, Noront's share price was at one time one cent. Even at this point, any one-cent NOT investor is wealthy.) However, Neil thinks it is worth a bet on a 43-101, which just may entice a large "major" interested in a world class chrome resource in a politically stable country (I'm ignoring the word "coalition" at this point).

Finally, I believe it encumbent on the SPQ investor to keep in touch directly with Neil Novak. You can phone him, you can email him, but this is imperative. One NOT investor commented the other day that he felt like a mushroom farmer - in the dark. Neil will talk to the SPQ investor. He, in fact, is the companies investor relation (IR) guy. He may sound grumpy or defensive when he first gets started, but he wants his company to succeed. But if you are prepared with some clearly defined question, he will warm up and tell you (within reason) what is happening. Whether you agree with his and his BOD's 2009 strategy, that's up to you. But without "working with him", he has no idea - absolutely no idea - what is bugging you or concerning you.

Spider Resources (SPQ) is a risky investment. Chromite is a very good story, however. SPQ has a bunch, and so has NOT and FWR. Ferrochrome is a strategic metal. And the world economy will rebound. Any investor who doesn't believe this, would be advised to invest in a GIC or T-Bill.

All IMHO.

Snug