Having sold half of our holding at $9.12 this stock is now trading at $8.72 on Amex. We were lucky selling so close to the top but that’s not the reason for this post.

The reason is that despite the pure chartists selling out, there have been a number of ‘Knockers’ who are prominent newsletter publishers who have added to FRG’s price decline.

What gets us is why FRG has not gone further down! Fronteer is showing remarkable strength regardless of the factors stacking up against it. We were not anticipating a crash but we had hoped for a decent correction enabling us to buy back in at a lower price. However this correction so far is only 4%, that sort of move can happen to a uranium stock any day of the week without us batting an eyelid.

It is the strength of this uranium/gold stock that has surprise and pleased us enormously. We still have 50% of our original stake in FRG and we will continue to watch for a little while longer. If the stock continues to weaken then we can buy back in and our short-term objective will have been achieved. If the stock begins to recover then we may have to bullet and buy back in anyway.

Either way actually suits us. If it is the latter our short-term objective would not have been fulfilled but FRG will have clearly demonstrated considerable strength and the future will look brighter than ever for this stock.

10 December 2006