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I believe that my recent comment on Premium to Standard listing may have a ring of truth in what I would call the wind of change. Institutions may think twice in investing in a company that has gone from Premium to Standard listing which entails less stringent requirements of both corporate governance and transparency, despite FTO assurances on the foregoing contained in the 2014 Interim Report. I have gone through my life with the adage "Never believe anything you hear and only half of what you see" In this day and age I question everything that is put before me. I am possibly a sad person.
I agree re the Mgt talking down the price. I always thought if a bid came then it would be in the high teens. Vitol I suspect will be pivital in any buy out discussions. Even a chinese co with links to CGH or even CGH would be in the mix. We must remember that whatever the SP the current delta to the NAV is massive. This I suspect will play out in a timeframe to suite others.
FTO is a holding company - it holds 569m shares in China Gas (384.HK) this is worth 117p/share. It has a net debt of GBP36.8m - which gives a NAV per share of 24.4p - stock is therefore trading at 72% discount. This is far too cheap and is only cheap because stock is too illiquid for any institutional investors to care. FTO board seem to be talking down the company and the current discount to NAV is at an all time wide - it is likely there will be a minority buyout at some point - and they will try to take company out on the cheap. However, it will still be at a decent premium to current level.
Thank you Valdez for your response it is most appreciated, I hope they keep their word. I have held a significant volume of shares in FTO for quite some time without acquiring a more intimate knowledge of this company. From the chat I hear it is time to address the foregoing.
God I hate this share ,every year I think its on the move .I am def out of this asap. Good luck every one .
from the second interim report February 2014. . . . . . . . . As a result of the FGIH Transaction and the change of status of the SPM joint venture, the Company was no longer able to maintain a Premium Listing on the London Stock Exchange but became a standard listed company, with effect from 20 March 2013. The Company remains committed to maintain the high standards of corporate governance and reporting standards as when the Company was a Premium Listed company. We will continue to evaluate options such that Fortune Oil’s listing status meets the best interests of the Company and its shareholders. .................http://www.fortune-oil.com/upload/Fortune%20Oil%202nd%20Interim%20Report%20for%2012%20months%20ended%2031%20December%202013.pdf
I stand to be corrected, however I believe it was Legal and General that pulled out after the announcement of the change in listing status. Somehow I just felt that something was going on that I did not understand. As I said earlier I may be way out and hope I am.
I do not know, can someone offer an answer?
Was it not because the last institutional shareholder pulled out their holding.
Why did they change from Premium to a Standard listing,what were the possible reasons?
I may be light years out on this however the wind of change for me was when FTO changed its listing status from Premium to Standard on the LSE. I believe the former requires higher standards of both corporate governance and transparency than does the latter which has to conform to EU minimum requirements that are lower. I refer to an LSE pdf (quote) " A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance – and as a consequence may enjoy a lower cost of capital through greater transparency and through building investor confidence." (unquote) Investor confidence from these chats appear to have been eroded. I am not a professional investor and cannot speak from a position of authority, perhaps I watch too many dramas?
Nothing to see here. P.S Don,t give up your day jobs!!!!
right now, I certainly made the wrong choice when I had the money to buy in to FTO or RRL and went with RRL. A bad day for oil stocks, for RRL it could be a right stinker of a day.
Perhaps so. we have been here before though. You turn on the telly and you will get information overload on oil politics. For my sins I worked in the field and then a bank in the days when peaople did not find a need to rhyme with banker :). I have spent a lot of time in places where sadly I can now no longer go. The politics is unreal and beyond analysing by most imo.FWIW imo the 2000 lb gorilla in the room is Iran who slowly but surely is beginning to find a way i from isolation and years of sanctions much to shagrin of its neighbours and not so near neighbours. If I was going back to work in the region I would happily go back there over Iraq or for hat matter Syria, obviously, Libya or even Algeria anyday. Venezuela its sad but if they want help they will have to change and the US will be in there like a shot. Russia well Putin is playing a high stakes game but I don't think OPEC is worying too much even if Russia has been signing a lot of gas deals with China. The way I see it is that the producers have had us the consumers by the b#lls for the best part of a decade which has seen renewables, efficiency and alternatives such as shale allowed into the mix. You only have to look around the Gulf to see that the boys have done good very good over this time. The smart ones have used the boom to diversify. Now I am afraid it may well be the turn of the big producers that were unable to participate.sadly for the "old" boys these guys dont need a high price per barrel to break even. FTO is not an oil producer we should feel relieved. I think
It is
You are quite correct. There is never an interim dividend. Hope they resume again next year. Think present decline is because of sentiment on lower oil price. This is being manipulated largely by Saudi to disconcert Venezuela and Russia
6.50 approaches, and it is time to buy in again for a good profit later on in the year. God bless Mr Woo!
is an activist hedgie when you need one. there must be one or two in China
I agree this is overdone. Though the market will detemine the SP. The NAV can not be ignored and as given that CCH are trading @ 14.48 (2.84%) up today then the actual NAV as of today must be in the high teens (at least). I read with some amusement a note from an II poster that at least FTO did not mention plague, pestulance, black death or ebola in its RNS.... They must want the SP to remain low...perhaps a low ball offer is being prepared. Still time will tell (just a tad longer then I or most here expected).
Market Cap down 20ish million on less than 1 days volume. Thanks for some cheap top up MMS
Completely overdone in my opinion , as we were not expecting a dividend , and if this is because of the outlook for the immediate future , then their is no arguing that growth is slowing in China , but it's pretty much slowing everywhere . Please can someone correct me if I am wrong , but reading the RNS it looks like FTO does not pay interim dividends , so we can expect one next year . That was my take on it .
And down she goes......I have a bad feeling about this one. The kids made a bad investment here :-{
That's tomorrow then
Del44 Thanks for the info Hope to see this in price of FTO soon Mms been playing games with this for bit to long
Goldman Sachs expected that excluding one-off items, CHINA GAS HOLD (00384.HK) +0.080 (+0.570%) Short selling $19.82M; Ratio 7.289% will record a core net profit of 30% yearly to $1.628 billion in 1H, representing 50% of the full-year estimates. The increase was mainly attributable to the 17.8% year-on-year growth of gas sales volume and 14% increase in connection revenue. The broker lifted the earnings forecast of 2014 to 2016 by 6/4/2%, reflecting the higher connection fee bookings. The target price was raised from $11 to $12 and the rating was maintained at Neutral. http://www.aastocks.com/en/stocks/news/aafn-news/NOW.640421/1