We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Couldn't agree more - I have now topped up and hold 22k shares maybe for the long term - Faroe are a fantastic very efficient company with excellent prospects and I believe the SP weakness is totally unwarranted but as I've said previously there is sometimes a reason for this - I had a similar situation with TSB ( then a ftse 250 share) when results and prospects were good and yet the SP poor - until wham - a sudden offer out of nowhere and SP rocketed - makes you wonder sometimes what goes on behind the scenes
Have significantly increased my shareholding in FAROE at these share price levels. I believe the future development of recent finds and planned increase in production output gives a strong investment opportunity as IMO this should allow the company to grow rapidly and return future profits from 2018 onwards. I am sure DELEK will be watching performance closely over the next year or so. DYOR but I think FAROE is one of the better investment opportunities within this sector for the medium to longer term.
This is very good news and more expected. See some large volume buys/ sells this morning and over last few days - these are probably buys this morning although we can never know for sure - but one thing I'm still convinced is that the mms are desperately trying to keep the SP down and that is always for a reason.
Really positive flow rate and expectations. Great news.
Great news. An the oil price has made strong gains since Friday close. I've been slightly baffled by the sp weakness, lets see if this can change the outlook.
Lets not forget the institutional shareholding in Faroe a lot of their shares obtained by the rights issues at £1.20 and £1.60 per share I am sure they would be willing to sell for £1.00. Anyway as said many times the fundamentals of this company are good and IMO have a strong management team and as an investor for the longer term I believe prospects are good and if one thing is certain oil price goes up and down.
Market cap is of little use in assessing a companies worth - you could have a 10 billion mcap with 95% debt, badly run, pension deficit etc etc - its all about the fundamentals and future prospects. Faroe has no debt, operating cost of $25 per barrel, significant discoveries, £113 m cash and a very tax efficient Norwegian exploration system. So even though the POO is taking a battering at present , this can, and does , reverse very rapidly - Delek haven't bought 15% of Faroe because they think it's not worth the money.
And a share price of £1.50 would give a market cap of just under £550m, not £600m. Cash in the bank would represent one quarter of that. But I appreciate that our production levels - for this year - are below Ithaca's with Stella coming on-stream. Our production will ramp up quite significantly next year, as we are down for maintenance purposes. But good luck with getting in in the 70s, munch. Oil will have to have a further serious leg down to get you there I think.
Just to clarify, a market cap of $1bn would equate to a share price of £2.136 at the current exchange rate. It is slightly misleading to describe a share price of £1.50 as "almost" $1bn.
Munchbox what is your view on the price Delek paid for Ithaca Energy which was just over $1 billion including debt? This would suggest your valuation is somewhat pessimistic.... the £100m plus cash here also covers 1/3 of the value of FPM. Naturally it's only worth what someone is willing to pay... I only hope Delek don't agree with you.
Followed fpm for a while, not purchased recently but am still weiry at a valuation of over £300m even at 82p. I think Upside it very limited with top side of £1.50 a long shot away. Even then they would be worth £600m ....wow. That's nearly a billion dollars. Just can't see it happening. Can see a range of 70-£1 for a very very long time. Any takeover will Not see anyone pay more than £1 n that's still £400m.
Not necessarily fund managers will have started to look at this share more closely especially as volumes have increased since the end of May although I do accept DELEK are active in the marketplace on this share. The next view months should be very interesting in my opinion but as I have said before the real game is the future development of this business for all.
My guess would be begins with D and ends in K - they are building up !
See late trade registered 750,000 buy at 87.75p for the 21st wonder WHO.
Added a further 5000 shares myself today sub 83p, as all mention - Delek are likely to support their investment and the companies fundamentals haven't changed. GLA
could not agree more that the fundamentals of this company have not really changed, if anything are stronger since Brasse discovery and we should see current share price as a buying opportunity as I am sure DELEK will. However whatever the outcome of their interest the real play is the future development of the business.
My guess is Delek will be buying another chunk whilst mms mark down the SP due to oil price. Seen this many times on aim - shall we call it mms adjustments for big clients - the point is that Faroes fundamentals haven't changed - the operating cost per barrel is $25 - so unless the poo drops to near this then Faroe will still be cash generative with much in the pipeline ( pardon the pun) in the way of discoveries , cash in bank etc .As previous posters have said - they are an extremely well run company as Delek know only too well. All imo !
I'd like to know why the share price keeps falling even though buys are almost consistently far outweighing sells. Where are the shares coming from?
to know what's going on with this stock. Delek in the wings and yet the price looks ever weaker though who knows who might be picking up cheaper and cheaper stock
Irrespective of the DELEK interest this is a well managed company with new finds, strong licence portfolio and forecast strong future production increases with plenty of cash. IMO offers very good investment opportunity at these price levels in the medium to long term even without DELEK position.
Naturally POO will drive the SP here. Some good research guys. I guess Deleks intentions will become clearer in the coming months although if they were buyers at 89p then surely they are buyers for less. Today's volume should be interesting.
Sorry PoD, you're quite right. Just shy of 80m.
I think you probably meant 80 million in freefloat not 8 million ( 80 million is approx 22% of the 367 million total. Delek has paid an average of 89 p per share so assume they are happy to pick up more around that price. Mms will bring SP down if there is another big deal to be done ( Delek just bought 5million at average 87p ) - so imo best to wait it out and add if you can on lows. Oil price is down but should recover to upper guidance for 2017 of 39 - 54 dollars once shale oil starts to become unprofitable as it did before. But we all know there are no guarantees on anything.
Hold 78.36% of the stock. Which leaves just under 8m shares in free float. You'd have thought the sp would be more stable really. Anyway, that's 63.26% held, disregarding Delek's stock, which is 74.5% of the remaining stock. I think, from the Ithaca takeover, Delek had to get acceptance from 75% of shareholders, excluding their stake. So if they can get the other major holders signed up, they would only need a very small proportion of the freefloat to swing it. Given FPM's massive cash balance, equivalent to almost 34p per share, one would imagine they would have to offer a pretty hefty premium to the current price. In these circumstances, and if Delek do indeed wish to make a bid for FPM, their best strategy at the moment would be to cntinue increasing their stake, slowly and carefully, at the current big discount they can get in the open market. Further TR1s will show if this is just speculation.
I hope the board of Faroe would put up more of a fight than Ithaca did in the event of a take over attempt. If the POO keeps falling then I expect to see Delek to keep accumulating at these levels. Let's wait and see what happens.