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FAR, page-59

  1. 5,718 Posts.
    lightbulb Created with Sketch. 1600
    My three main reasons for a company needing to pump up & promote the company and its prospects at all times are:

    1) a takeover could come at any stage - a 40% premium on 15c is better than a 40% premium on 11.5c

    2) shareholders are sometimes forced sellers - Wannabe had to sell out due to financial reasons at sub 9 or 10c from memory, KKW had to sell due to SMSF drawdown commitments, I am sure both would have rathered a higher price.
    Over two years ago we were told that the shareprice would look after itself - since then the price has risen modestly despite a strong oil price rally, AUD decline, Samo/Petrosen coming along and SNE getting two years closer to production.

    3) a capital raise could come at any time - an opportunity too good to miss could come at any stage that may require a capital raise to execute. I would rather the capital raise be at 14c rather than 10cents if it were to happen tomorrow.

    I know you have a longer timeframe in mind for your investment in FAR, but say you had to sell tomorrow, would you rather sell at 15 cents in a pre drill company induced pump (ala PCL) or 11.5 cents? We are all here to make money and most of us will try to sell near or at a peak which will likely be caused partially by a company promoting itself and its finds.
 
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