Since FAR's resumption from our trading halt on Jan 5, which was our most heavily traded day for some time (50.7 million shares), and many different hands will have participated on this particular day. Our total traded shares up until close on Friday Feb 26, is 304 million or not even 8% of shares of issue.
This leads me to believe, even if one is capping to accumulate very small in roads will have been gained. In order to cap a price, and maintain a lower buy in cost, one has to keep the selling pressure strong, by selling a large percentage of their buys to keep the price fixed at a certain level. Never mind the others who see fantastic value and are purchasing along the way. If, and that's a big IF, someone is trying to gain control of the company. They have a very long way to go.
Let's have a look for example, when Farjoy was accumulating to lock in such an incredible amount of shares (10% or 360 million+), the price drove very strongly from around the 5 to 6 cents level, up to 14 cents with relentless activity and excitement, and a fair bit of time elapsed whilst this was ongoing, and who's not to say he didn't already own a cool 100 to 150 mil when the buying onslaught began. It would be near impossible to stay within a 1 to2 cent range and potentially purchase some 370 million+ shares, or it could be done in a very, very lengthy period of time. With what sits in store over the near horizon, the cappers will have to battle extremely hard to keep this anywhere near below 15 cents.
Just one last note, using Aquas (Paully) valuation. Lets keep it real. After the next CR comes along, FAR will have to obtain a MC of over 4 Billion Aus dollars to achieve that magic dollar. Aquas constant comparison to Kosmos must certainly open a few eyes to an unrealistic fantasy. Kosmos, producing at Jubilee, TEN project coming online very soon, and massive gas discoveries just to the north of us in Senegal and Mauritania. Kosmos MC- 1.75 BILLION US, or the equivalent of 66 cents per share of FAR. Never say never, but Senegal would have to be one of the greatest finds in the past 50 years to get us anywhere near this dollar mark.
Looking forward to next week, as 10 cents, and then the half cent intervals are in sight.
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