Found this from another poster on Moneyam recently....makes for interesting reading and food for thought. Ruthbaby from a competitor BB...
I am not sure what the next news flow is here..as the gas component is now gone. A regular poster on another board seems to think that the price above 8.80p on the bid is a vital next move (not sure why)up. To be honest..I am surprised the sp did not fall more after the very boring results yesterday... But I am getting more optimistic that the big seller is now finished and we may find that the buyers are now more comfortable that stock is not now going to be dumped. Also most of the big volume trades are now on the buy side. This could be in anticipation of the next announcement which may be associate status been granted. If it were the case an acquaintance of mine has said it could mean as much as £33.9 million before tax profit, been attributed to FTO on a consolidated bases, based on CGH's 2012/2013 year end profits recently announced..which were in GBP £169 million. That plus our remaining groups profits could put us close to nearly £50 million before tax!!!! Not including CGH stake and cash from deal... With gearing around 21% and very manageable...this stock is beginning to come through the smoke of the last year in an exceptional position and will no doubt soon attract serious attention... Big top up completed today on this new information and please....EVERYBODY DO YOUR OWN RESEARCH...but don't take forever..
Fully listed Fortune Oil (FTO) has announced a string of transactions which has left many investors pretty confused but broker VSA Capital reckons it is good news for investors. It has published a detailed note explaining all.
Fortune Oil has announced what is a very complicated, but ultimately beneficial, package of transactions which aim to drive future share price performance and increase its exposure to the growing Chinese gas market.
1. Fortune has acquired the remaining 15% interest in Fortune Gas Investment Holdings Ltd (FGIH), for a total consideration of US$60m. This interest is currently owned by Wilmar International Ltd (WIL SP) and has been conditionally sold to China Gas Holdings Limited (384 HK).
2. Fortune has arranged a working capital loan via a Vitol-backed vehicle, to bridge commitments while it awaits Ministry of Commerce of the People’s Republic of China (MOFCOM) approval for its asset disposal to China Gas Holdings.
The short-term benefit for existing shareholders is the special dividend of 2.36p/share, which should counter the dilutive effect (c600m new shares to be issued) of these transactions.
In the longer term, the acquisition of Wilmar’s interest will increase Fortune’s exposure to China Gas Holdings (CGH), and therefore to the rapidly expanding Chinese gas market. Vitol’s involvement in today’s announcement shows that it, too, has expansion plans in China, and this relationship should yield additional growth in due course.
Given the share price performance since March, this news should come as some relief to the current shareholders, as it delivers a special dividend as well as the opportunity to create more value in China.
We continue to be of the view that Fortune Oil is a misunderstood company and is undervalued on its CGH interest, alone, with the Fortune portfolio in for “free”.
We maintain coverage with a BUY recommendation and target price of 20p.
It is OK because you can cancel when you want to. I might take it for a months subscription and then cancel..it depends on what I am monitoring at the time.. But L2 is not great to be honest and I would not have a full subscription running all the time as it just does not really help. Example... The best bid may show say 10p for 200,000 shares. Someone with DMA may hit that for say 100.,000 so then the best bid goes to 100,000 @ 10p..so far so good. Someone else who does not have DMA may sell 100,000 as an O trade and it does not seem to affect the L2 book which still remains 100.000. So in that way it does not give you a true reflection on the book. Of course it may very well be an iceberg order showing but it does not seem to be the case as I have studied it for some time..
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