market value of far?, page-16

Wasabi,

As FAR as I can tell, oil is basically a currency. Ok it's a commodity, but on daily turnover it well and truly exceeds the GDP of most small to medium countries.

Aside from Senegal, FAR's asset backing per share is roughly bugger all, give or take. Around AUD $13M cash plus existing reserves. Total nett asset backing is, or was, probably 2-3c p/s.

So FAR will pretty much be valued solely on the value of their Senegal assets once the CSEM results are released to the market (assuming they are).

If there was a company that suddenly had nett cash of $5 p/s, and was currently trading at .15, .5, or even $2, how long would it be before it is either taken over, or the market comes up to speed and values it more realistically. Not long I'd reckon. So the market and potential bidders will decide what FAR is worth, with the price of oil as their guide.

Frankly I don't care whether it is a takeover action or market action that drives the price up. Actually maybe market action would be preferable; no (or fewer) trading halts to worry about, no FIRB intervention, and it means you can take profit as and when it suits you. If we're taken over you pretty much sell all your shares in one hit, and the tax office will get a very sizeable chunk of that, particulary for short term holders. If you look at Hardman, their shares peaked on speculation of takeover, not the takeover price itself.......