Yesterday we decided to buy back the 50% holding that we sold recently.

As you know our investment in Fronteer doubled in a short time and we decided to take some money off the table and therefore sold 50% of our holdings. We had expected some profit taking and hoped that a cheaper entry price might present itself.

It looked as though this was not to be as FRG showed considerable resistance and held up well. Then, during the last few days all the uranium stocks suffered from a little profit taking. This coupled with the fall in the gold price had an effect on FRG as it is involved with both commodities. So at $8.33 we bought back in. Having sold at $9.12 this has worked out reasonably well for us.

FRG now makes up a large proportion of our portfolio and we are happy with it to be that way.

The chart below shows the recent decline and the point at which we decided to act. That’s not to say that FRG could not go further down, it might but will sit on our hands and hold tight.

Happy New Year

06 January 2007