Far chart, page-144

The reason the share price does what is does is both complicated yet simple to understand.

At the moment it does not have enough institutional interest. Farjoy has a substantial interest and we are told there are other "professional" or "new institutional investors" now on board. However there is little competition from this sector at present and there will not be until there is an announcement on commerciality. Even if FAR announce it this year it may not be the catalyst for a sudden rise in the share price (hopefully it will be, but I have my doubts). It will be when the partners make the announcement or if (when) someone comes in with a takeover offer. The price of oil may have a slight bearing as well and unless a few countries see sense or start fighting each other (which is not want we really want) the price is unlikely to radically increase any time soon.

In the meantime we have a number of factors at play. Firstly the day traders/chart people who believe they can make money day to day on the stock. The price meanders up and down all the time so I guess there is scope there for profit (and loss) but in the scheme of things the shares traded by these people is minuscule compared to the amount of shares on offer. Secondly there are the impatient and weak who sell to either the traders or long termers. Non on these events will drive the price up much. Announcements stir the price for a short period before another malaise sets in and it retreats again.

There are probably numerous other factors that keep the price down but one thing is true - they have discovered a s*?t load of oil that is very much likely to be commercial in some form, also the field has the massive potential to grow in size which is all good for the future.

So I look at the chart and it tells me diddly squat, it tells little of the story behind the company, it does not tell be precisely when commerciality will be announced - with that in mind I will hold and wait.