I support FAR, page-38

First 38 Last

Share
Profile

Follow
Davy Boy

16,614 Posts.

3993

05/05/16

14:39

Post #: 17686086
Share

Originally posted by fisho26 ↑

The simple answer DB is "raise at a higher price". Not just the latest CR but previous ones too. The effect of consecutive raisings at substantial discount is cumulative. It builds up an expectation among potential investors that the next CR is also going to be cheap. It is hard to break the cycle once begun but surely the key is for management to convey their assessment of the value of the company to investors and SELL it (not just be grateful that some rich b@stards are willing to stump up with $60m at a bargain price). If you recall, the SP had worked its way up to 12 shortly before the last CR and that seemed to be under normal momentum from retail buyers. The price trend was up so why was there a 30% discount. Maybe my assessment of the value of the resource is wrong and , in fact, the fair value of the shares is 8 - 9 cents. If that is what Cath really believes and is the reason for the issue price then I would appreciate her coming out and telling us that (with reasons) so we can abandon our dreams, unload these shares and not have to spend so much time on HC.

Yours in despair,

Fisho

Expand

Yes Fisho I agree with raising at a higher price but unfortunately I don't think it was an option for FAR. Its easy to say that but in the environment we find ourselves I personally think it would have been difficult raising at much higher prices.
I would also point out what would have happened to our sp if at say 10c they went with a cr at 9.8 and then couldn't raise the funds? FAR would look weak, silly and the sp would have been smashed and FAR would be dead in the water. Nothing looks worse than a cr they can't fill IMO. DB

FAR Price at posting: 8.3¢ Sentiment: Hold Disclosure: Not Held
3 Upvote

0 Great analysis

Reply

Top Stories

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

What's causing the cost-of-living crisis, and how to navigate it

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war