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Share Views Episode 4: Mid & Large Caps with Chris Bailey


Frontera Res Share Chat (FRR)



Share Price: 0.115Bid: 0.10Ask: 0.11Change: 0.01 (+9.52%)Riser - Frontera Res
Spread: 0.01Spread as %: 10.00%Open: 0.105High: 0.105Low: 0.105Yesterday’s Close: 0.105


Share Discussion for Frontera Res


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Tsbs
Posts: 2,813
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 16:47
puddy
 
itsgambling
Posts: 1,163
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 16:43
Yes, it could be the strategic partners who sold. I personally think it's ya but the sell side is less important.
The key is who bought them...;-)
Coggy
Posts: 10,473
Off Topic
Opinion:No Opinion
Price:0.105
Tsbs
Today 16:42
Met any pie men recently?
Tsbs
Posts: 2,813
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 16:22
its ok..im a simpleton you knew :-)

I understand the principles but just thought both would have to be reported

So the question is who sold them and who bought them.

As the suppliers didnt actually pay for them they dont actually lose if they sell at any price.

It could easily be one of the suppliers. They may have been paid 4m worth of shares but in reality the work they may provide might only be valued at 3m who actually knows its a farce

If they arent doing any work and for me thats yet to be proved they could sell 200m and be totally in profit
itsgambling
Posts: 1,163
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 16:09
Hi Tsbs
Generally, trades are made with an MM. Hence they are ambiguously referred to a buys or sells ie: you 'sell' a million shares to an MM at 0.1 and Puddy later 'buys' a million shares from an MM at 0.11.
The MM creates a market for us and he gains from the spread.
The MM won't ever take loads of shares without selling them very soon after - holding a position is risky and not their game. Hence if loads of people sell then then they will quickly decide not to take any more shares unless at a silly low price - at least until they have offloaded the shares they took.

This isn't always the case. It is possible for the MM to not get involved and just to report the trade. In which case the trade is neither a buy or a sell - it's both. YA sell and Mr x buys.
IMO that's what happened here.
Sorry for the simpleton description

IG
Tsbs
Posts: 2,813
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 15:58
sorry if this is a stupid question but as the sell was shown why isnt there a need to show the direct buys and can't quite remember but wasnt it 400m sells and a 100m cancel although im sure you are right ig

Why does sn need more of the company hes maybe happy with what he has
itsgambling
Posts: 1,163
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 15:29
3% ... The line the company have used (hidden behind) in the past is that they do their best to report in this but, as cayman registered, they have no way to force shareholders to declare to them their holdings. Not the case with directors or strategic partners.

The scenario you suggest (of YA making one large sell to an MM and the MM offloading these to many little buyers) does not hold water at all for me at all - firstly, no MM would take that risk (call your broker try getting a fixed price to sell 200mill - no chance!) and secondly, since the trade on the 16th, have a look a the subsequent transactions - we're miles off 200mill.
If that was right (which I see no chance of) then the MM would still have over 150mill and 0.095 would be the strongest support ever!

My view is that an MM did not form one side of this trade, it was a direct transaction that has simply been reported and doesn't need matching buys (or sells) ie: it's a direct transfer of ownership of 200mill shares, from YA to Mr x. (nice profit and zero risk for YA who placed them at 0.0808)

If an MM was happy to take chunks this big then, in previous placements, we wouldn't have seen the usual YA overhang and related daily 10/20 late trades.

JMO
IG [still in those shades]
Retireby40
Posts: 1,676
Off Topic
Opinion:No Opinion
Price:0.105
200m
Today 15:25
I believe it's up to the buyer to notify the company and they should still do so even if Cayman registered (not positive on that though). The point is if someone bought 200m assuming they didn't hold any others (although they could in different entities, trusts etc) it's under 3% anyway so wouldn't have to be declared.

I now don't think we'll get an RNS until early Sept, assuming we get one before the interim RNS.Hopefully the next one is confirmation the $30m has been taken from the balance sheet and no recourse and after that chunky director buys followed by a positive ops update.SN probably wants at least another 500m shares to take him to nearer to 10% of the authorised share capital.
cristalball
Posts: 1,315
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:0.105
RE: 200 million shares
Today 15:02
3% declaration doesn't apply in Cayman

Why do you think it is a single buy ? Large sell and many smaller buys

?
itsgambling
Posts: 1,163
Off Topic
Opinion:No Opinion
Price:0.105
200 million shares
Today 14:55
I have been wrong at every turn. Dunce hat firmly in place. Nothing new with this share. But that doesn't stop me puzzling & discussing.

So, we had a 200mill & a 100mill trade on 16th. And another 100mill that seems to have been cancelled.
These are massive and warrant further debate.

There are very few potential sources of 200million shares - not Elmar (only had 163m), not SN (no director trade RNS - amongst other reasons), unlikely to be Unibrow (selling so soon a substantial loss, and no RNS). So I'm left with YA - I am (still) 100% confident it's them. The August SEDA placement was 513m, and we have still not seem more than half of these sold IMO.

The real mystery is the buyer. I initially thought directors - that must be wrong now, as no director deal RNS. There is zero chance that an MM would take a risk on 200mill shares, even at 0.095. So it must be a new buyer. Can you think of any other possibility? There is none, IMO. And 200mill is interestingly just below the 3% declaration level.....

Based on this, then it's a strong positive that someone with a degree of closeness to the business, would take 200million shares (pre-arranged in the SEDA volume) at this stage in the game.
Apologies for still wearing those shades, but I see no other possibility.

IG
PS: Thursday tomorrow ... news day?




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