This uncertainty is not being shown up as the shares being "sold off" - but rather there are simply no real numbers of buyers. The fear of this kneejerk reaction is keeping the buyers away and on the sideline.
Very true. And if FAR do announce a capital raising anytime soon I would be flabbergasted as their incompetence would be out there for all to see. A capital raising bow, well FAR management might as well be shorting their own stock.
Whoever is advising FAR on their marketing strategy needs to be sacked. We may have already seen this occur with new brokers starting to cover FAR. It's a brave person who believes that FAR will not use the 15% new issue rule to raise capital before the end of the FY. It's just too attractive for them not to be utilised.
The sell down over the two days leading up to last nights announcement by CNE stinks of some form of leak and price suppression to contain any possible rally today. Where that leak has come from needs to be investigated by FAR but I would guess it probably originates on either the DrillMax or with CNE IMO.
A bit of nostalgia from Sep 2011 presentation!
ASX Code: FAR
Share Price (Aug10-Aug11)
High: 0.175
Low: 0.029
Current: 0.032
Ordinary Shares on Issue: 1,245,401,164
Convertible Notes on Issue: 6,506,419
Options on Issue: 24,800,000
Cash on Hand: $26m
Receivable: $US6m Subject to Beibu Gulf sale conditions being met.
Market Capitalisation: $40m
Enterprise Value: $16.8m
Fast forward 5.5 years and FAR have increased their EV by about 18 fold but only increased the sp by 1.3 fold.
And now the icing on the cake and what I deem as their greatest blunder they have ever made and still they do nothing to correct this. You only have to look at 88E to ascertain the benefits of an AIM listing. It's common sense really to all but FAR management and their advisors!
FAR continues to evaluate the potential value of a future AIM listing.
And 5.5 years later???????
FAR Price at posting:
7.4¢ Sentiment: Hold Disclosure: Held
(20min delay)