Credit Suisse presentation, page-76

All oil stocks on the ASX are under pressure since POO dropped so its not just a FAR phenomenon.
Most large oil stocks have halved in price.
The smaller oil companies have suffered the most regardless if they produce or not.
Oil commentators are split on where the POO will head in the future.
Some see it going back to $35 and some going to $70 and so far the lower figure is closer.
Cutting production so far has not had the desired effect on price as the US shale producers just keep pumping the sweet spots to keep paying their debt.
I doubt that will correct itself soon as their cost curve has been reducing.

As for FAR's register, nearly every equity raise is underwater for the instos and private investors.
Look at Farjoy, they must be severely underwater going by their participation in the ER's.
Times have changed even for Farjoy when they first invested as POO has done an about face.

Saying that these big institutions and Farjoy would never sell out until they achieve the valuation most on here say is total delusion.
Instos have not the commitment to stocks as some on here think as they are here to get some sort of return on their investments.
They also play games where they churn massive amounts of shares to average down their investment.
KAR is a classic example where the largest holders have watched it drop from $6 to $1.40 and witnessed churning to a massive degree.

Why don't they just sell all there holding if they SP is much lower than their entry one would say.
Simple reason is they cant because volume that big would crush the SP.
So they keep churning and gradually bring their average down.
This can take years as in KAR's case while they wait for an about face in the POO or in one large shareholders case sell out.

The end result in all this is instos as well as retail where their buy in is high and are forced to average down are stuck with the said stock unless they bail.
So in others words I would not call it capping a stock I would call it churning a stock which is all above board.