FORMATION CAPITAL CORPORATION- $900m in Cobalt finds Message Board

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Gold/Mining/Energy : FORMATION CAPITAL CORPORATION- $900m in Cobalt finds

FCO 9.420

+0.1%

Aug 6 5:00 PM EST

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To: Bannick who wrote (52)	1/25/1999 11:03:00 PM
From: donald martin	Read Replies (1) of 87

<<Do you consider that this might be an opportune time to average down>> I have some bread set aside to double down on FCO at some point. This might not be the time, though. I don't think FCO's market price is anywhere NEAR where what I think their properties are worth. Hell, I don't think FCO's market price is anywhere NEAR what the Sunshine property alone is worth. However, no one wants these stocks. I don't know Mari-Ann Green, but I know other people who know her who speak VERY highly of her. FCO is sitting at pre-fease right now on the Sunshine project. Going forward with a bankable and bringing this thing into production are going to be difficult quantum leaps. I bet that's what Roland Horst was brought on board to do, and I take pause that he resigned after a mere month and a half. On the plus side, there's another half a million been thrown into the till on January 7 that will at least let them tread water for a while. What it all comes down to is this. (Clipped from a November 1998 press release.) The study calculated a net present value of over US $85 million net of all capital and operating costs and contingencies, discounted at 8% with an internal rate of return in excess of 33%. So, if you figure their other 10 properties are completely worthless, that still leaves the stock trading at about one fortieth the net present value of their Sunshine project. I like bets like this. As for me, if I see the stock around $0.12 to $0.15, depending on what else is going on, I'll be putting on a much bigger position. Don

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