FAR

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Consolidation, page-23

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farjock

289 Posts.

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20/07/18

16:43

Post #: 34483233
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Originally posted by Oddoneout ↑

Morning All

With our threads wandering between topics, I thought it worth a quick discussion on a separate but important issue, consolidation.

Two - three? - AGMs ago, the Chairman said consolidation was “inevitable”, but had to be carefully managed to avoid destroying value. It seems to me we are now closing in on the opportunity to undertake this important milestone. Several factors are working in our favour:

> The oil price has recovered.

> Buyer sentiment has returned to oil stocks.

> FAR looks to have established a higher SP base.

> FAR’s register has tightened, with several cornerstone investors who - importantly - have appetite for more stock.

> DOC is imminent, bringing FAR within investment mandates for more instos.

> And lastly, FAR has two potentially massive game-shifting events on the horizon - Samo and PE.

Importantly, FAR’s Board boasts a Director with runs on the board in successful consolidations. In taking Beach Petroleum from zero to hero, the Admiral along the way consolidated its register in a value-accretive way. I asked him about this and wrote something at the time about his methodology. The detail escapes me now, but it included an incentive for holders of the newly priced stock to hang on to it rather than trade. Buyers were also in the wings to mop up any leakage. Without such strategies, consolidations are fraught, as we know.

The Board and Farjoy have visions of FAR as a large(r) and successful producer; it won’t get there while it’s in penny dreadful territory. I don’t think the timing for consolidation is quite right yet ... but it’s getting closer.

OOO

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Most of the reasons you quote are criteria for consolidation but a steady income stream and solid mc are fundamentals. However as ego found out to their demise it needs to have a growth portfolio forecast. Stats show more companies struggle with consolidation than not its fact. I would think consolidation is 5 years away at best and with talk or a potential for a TO or partial buy out far willbrnd up in the shark tank. Cheers and I hope this subject is now exhausted.

FAR Price at posting: 13.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 50.0¢		Change -0.015(2.91%)		Mkt cap ! $46.20M

Open	High	Low	Value	Volume
52.5¢	52.5¢	50.0¢	$45.91K	88.73K

Buyers (Bids)

No.	Vol.	Price($)
2	5993	50.0¢

Sellers (Offers)

Price($)	Vol.	No.
50.5¢	5982	1

View Market Depth

No.	Vol.	Price($)
1	2000	0.500
2	28930	0.480
2	70000	0.475
3	84150	0.470
2	60000	0.465

Price($)	Vol.	No.
0.520	50000	1
0.530	10000	1
0.540	22471	1
0.550	82295	3
0.590	5000	1

Last trade - 15.08pm 28/06/2024 (20 minute delay)

FAR (ASX) Chart

Consolidation, page-23

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Consolidation, page-23

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