Int'l Speculator says hold Fronteer, see how story ends

2008-11-21 20:07 ET - In the News

The International Speculator in its Nov. 5, 2008, issue, says hold Fronteer Development Group Inc. ($2.40).

The newsletter first said buy on March 4, 2003, at 58 cents. It then said sell on June 26, 2003, at 63 cents. Assuming an investment of $1,000, the sell resulted in a profit of $83. The newsletter then said buy on April 3, 2006, at $4.95 and again on Oct. 1, 2006, at $5.97. It said then take profits -- sell half perhaps -- on April 2, 2007, at $14.81. Assuming two new $1,000 investments, selling half at $14.81 yielded a profit of $1,641. The Speculator said buy once again on July 2, 2007, at $12.70, and one more time on April 1, 2008, at $5.10. Assuming another two $1,000 buys, and taking into consideration the remaining $1,000 investment after the April 2, 2007, one-half sale, the Speculator's total $3,000 investment is worth $1,082.

The Speculator's writer figures Fronteer has probably bottomed. It has plenty of cash and continues to advance several gold plays, including 51 per cent of the Long Canyon joint venture with AuEx Ventures Inc. Having taken profits on Fronteer, he is happy to hold and to see how the story ends. He wants to wait for clear signs of "traction" before buying again.

Blue Sky