re: Ann: Share Purchase and Convertible Secur... No buying...

re: Ann: Share Purchase and Convertible Secur... No buying pressure so the share price will eventually start to descend. We all know there is selling pressure even though the shares do not appear in the market depth. If the S&P500 breaks below 1300 we will see selling pressure in the ASX and fwl.

What we have is 3M shares for sale by Springtree around current prices or lower and potentially 10.6M shares for sale by Sin Tang around 15c. That is a lot of shares to be absorbed. 15c only gets us back to where we were prior to the Taifeng deal being announced. The only news that can drive fwl over the coming 1-2 months above 10c is Chinese Govt approval for the deal which means more money into exploration and another $2M into fwl's coffers or some good news on Oakajee. I expect Sin Tang to be selling into any rally approaching 14/15c resistance area. Sin Tang may have aspirations getting into bed with pdy once the merger with agu is put to bed.

Noting that I am long term bullish but expect a larger correction of this rally to take place between Apr/Jul then I see no real upside until 2H 2012 unless we get excellent dso intercepts before hand.

There is the potential for a surprise to the upside should Sin Tang not exit fwl at 15c which may lead to speculation that they may have a corporate agenda for fwl and their pig iron plant dreams.

Only speculation on the last point but Sin Tang not exiting would have to be Bullish!