I would suggest that there could be a short term profit to be made here?
With 400Mill US (340 of which will gnow go direct to FTO) that will be, by cash or shares £213M (give or take).
With 2B shares in circulation thats approximatly 10.7pence per share. As far as I am aware whilst there may be issues with the future direction of FTO, surely we should not underestimate the value paid for these assets?????
I can see the headlines in iii and ADVFN etc. FTO gains greater than its market cap.
This seems too easy so accordingly i assume it is. What am i missing here?
P.S. As previously seen news does not really have to be all that good to suddenly cause FTO to shoot up a fair old whack.....
Earnacrust. Usually a company will repatriate currency into accounts of the listed country (UK). The date of conversion may have been taken at a certain time at the end of 2012 or averaged out throughout the period the accounts cover. While the funds do not physically move, the fact that the Yuan is appreciating against the £ is a good thing. Yuan against the $ is of more interest as out recent sale was carried out in local currency..HK$.. Gets confusing, doesn't it?....:)
I am very aware that this company "HAS" potential to improve the lot for shareholders. There are so many permutations to FTO. The CGH stake still looks very interesting and perhaps has a few more twists and turns to go. It hinges on what their intentions are regarding the cash received from CGH for gas assets.
While a HK listing may be of some value, I would prefer to continue with a listing in London, but who knows!! My view at the moment is that after paying down the debt as said in the circular, I would imagine that Armenia may get an injection of investment after results of the 2sd JORC are announced, which may not be the worse case either...:)
I always saw 2013 as the pay back year when Liulin started to earn money for FTO. Now we seem to have "sold the family" and consequently introduced uncertainty regarding 2013 earnings growth. If we believe what FTO management say the CGH deal is in our long term interests. Yet again we will have to wait and see.
We should have a full contribution from our gas assets as we still owned them at 2012 year end... Profit and dividend targets should remain in line with forecasts but very difficult to forecast 2013 profits..... Oriel have said nothing and seem incapable of giving any guidance other then reiterating their "Buy" recommendation going back years..
So while 2012 may be a record year yet again...2013 is ?????
Thanks for your response Del. I too follow both boards. I am a long term holder of FTO and have come to know those places (such as yourself) where constructive comment is offered. Yet again we are faced with uncertainty in 2013. The market does not like uncertainty. I only hope in the short term is an improvement in earnings and dividend for 2012 results
I dont post on iii, but have followed that story... The GBP will possibly weaken against Chinese currency over time and as we are still based in London, our profits/loss are still denominated in GBPs...so could be a positive. Still think things have moved well beyond macro issues concerning FTO at the minute..
Short term issues still center on where profits are coming from going forward.. If...and I think it is a big if...FTO CAN consolidate some of CGH's accounts with ours, that would be a major plus..but we may not know for 6/9 months down the road... Dividend growth must now be of concern for some who bought into a growing gas asset company that we were before the deal. FTO policy is to pay 20% of atp...but with this deal gone through, they may change that as we have no certain profit growth. Bluesky will still do well. But it is a very changing animal now for sure now is FTO......but into what exactly???
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.