Although I agree that the share price is very disappointing I think that we need to be realistic about the opportunity presented by PE. From what I can determine from email responses from FAR and what has been released by FAR it is apparent that FAR was caught out by the COP sale. The reality was that they would not IMHO have had the finances in place to act quickly on this. I mean really ...they just did a CR for $80m and that was huge ... no way they could have fronted up within 30 days with US$440+. They didn't IMHO have a partner at that point. If they had the finances available and a big brother in the wings they would have been MAD not to PE within the 30 days BECAUSE it was a bargain (that's certainly what Cath was implying yesterday when she said most sales are going though at US$4-8 and COP's deal was US$2.20!!!) ... irrespective of the fineprint and conditions of sale that COP would not show them. They didn't have the finaces or partner at that time and COP acted outside the JOA so FAR was able to instigate the dispute procedures ... thus "preserving" their right to PE .... while they set about lining up a partner and finaces ... both of which they must have now or they would not be considering proceeding to arbitration.
H
FAR Price at posting:
8.0¢ Sentiment: Buy Disclosure: Held
(20min delay)