FDM 0.00% 1.1¢ freedom oil and gas ltd

10m shares dumped after close, page-5

  1. 3,312 Posts.
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    could be a re balancing of funds due to inclusion in the ASX 200. - would essentially mean nothing

    Could be someone new dumping the crap out of the stock. - would mean the SP is likely to plummet, especially with the sick looking dow futures.

    It could be the final 'sale' of a larger holder who has been selling out over a few months. - would actually be extremely positive for the company. Last time a 'big' holder sold out of MAD, the share price happened to increase about 500% in the next 6 months.

    So basically it could mean nothing, or something. It could be good or bad. There is way to prove one interpretation over another.

    Got a company that is losing its price due to low production and stale market conditions that suggests it will increase production dramatically over the next few months/years.

    Simply, if it cant increase its production above 900 BOPD ever, its probably barely a 35cps company. If it can prove its business model in the shallow wells the gulf deal illustrates the potential value.

    The deepers wells, if they come off, are cream. If they dont its no biggie to the bottom line except that it makes management seem incompetent for bothering in the first place.

    I personally believe the management, as they have no reason to ramp or hype. The head honcho is by far the biggest share holder of the company, he's not there making a quick buck off director's fees. He's making money by building share price and profit.

 
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Currently unlisted public company.

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