hi noellyn, yes something must be coming out of FTO HQ.
9p is the 52 week high, good to see that broke through 7.25p as it is a resistance point (19/02/07). 8p is also a resistance point (26/03/06) but from looking at its chart pattern once it has finished its run it will go quiet for a few months before its next run. Be interesting to see how long this run will continue.
The difference between FTO and MPO is that FTO has plenty more exposure to Chinese market than what MPO has so this run could be from anything ranging from its JV with MPO or news on its FNG ventures/anything else it has an interest in.
Another difference is that FTO capital exposure is centralised and focused purely on its Chinese assets which range from pipelines, petroleum, LNG, CBM compared to MPO where its capital exposure is broad and all over the place making it realistically harder to manage.
Looking at todays announcement MPO burns cash like crazy in the next quarter they estimate an expenditure of some $11million. if you divide $11m/$40m the outcome will be around 4 which equates to 4quarters which means means they will be seeking further capital raising.
Looking at this timetable from here to the end of next year there is really nothing significant being added. Where is the cashflow coming in? to offset the massive cash outflow over the next 12 months or 4 quarters?
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