If you bought FAR, which is a highly speculative stock, for a quick trade then you have every right to be frightened of shadows....the staedy hands will nab you when you blink. If you know the management of FAR and understand their combined strength and are prepared to let this discovery blossom then you will be content....
I cant read Tonys posts and am happy with that....it seems that as the SP dithers he/she activates...
Cant be bothered with the trash commentary.
Here is an interesting post that Sperninja put up on the Pilbara Minerals board....it could very well apply to FAR...enjoy the read and know that when Philip says that FAR has been in touch with private equity...the comment does not come lightly..
with thanks to Superninja..
Craw-vert
"Hi All,
Starting a new thread to get it out of the Chart thread.
As I have received a number of questions on HC and around 10 emails, I will provide as much info as I can.
Also had an email from a good mate that used to run 14 billion commodity fund so many of the ideas are how a major fund manager in New York would look at this - hence can not take credit for all of the following:
The short is simply a function of liquidity and lack of positive news flow.
Management have not done themselves any favors historically, but they are getting better.
Very important for PLS to stay on the investor road map and not go quiet otherwise shorts will ramp up.
Suggestion 1.:
Go to the UK. It is where funds came from last time and where funds exist to seriously lift PLS.
My overall concern is that the retail holders will tire of all the crap and volatility and dump on the next expected news items, this will put a cap on the price impact.
It really does look to me that the price is being held down, even from current levels. Typically if you short you expect one of two things:
1) the price to go lower so you can close out and profit. Or
2) a wall of volume on news items that will allow you to buy large lines of stock at Low prices, a cheap take over if you like.
My problem is that the current daily volumes of PLS would allow a patient investor to accumulate stock without needing to play the short strategy.
Maybe there are two plays right now. One from a Hedge Fund on the short side, just enjoying the volatility and liquidity, and a patient insto or corporate aggregator.
Suggestion 2:
We should encourage PLS to run a registry search to see who have been the major buyers over the past 3 months. If it's custodian based or offshore direct then we know someone is accumulating.
We just need to wait them out. (As an aside, the fines for not disclosing are minuscule).
If it's not clear where the buying is coming from then we have other issues we need to work out.
Why bring in a fund or insto:
The reason is that Hedge Funds and Instos rely on each other. They typically follow a strategy of follow a good fund or insto name into a target. It is a reflection that there are many investment opportunities out there and fund managers do not have the time to assess them all.
Having a fund invest means that someone has completed substantial due diligence and everything is hunky dory. It also means that other funds can now more comfortably invest without the fear of an unknown blowing up the investment. It needs to be a well known name, a reputation for successful investing, global and big.
I would be more than happy for them to be offered a 10% discount for a 1 year lockup for a 5% or 10% equity position. It is easier to get 50 mil than it is to get a lesser amount.
This then provides funds to PLS / locks up the share registry and provides the fund managers an incentive to hold the price / lift the price to profit from their underlying position.
This also provides the fund with a great immediate short squeeze profit.
If you (PLS) do not have connections in funds - myself and other shareholders do - just reach out and talk to us.
Hope this is clear enough,
Kind Regards,
Super Ninja
FAR Price at posting:
7.6¢ Sentiment: Buy Disclosure: Held
(20min delay)