Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
This company has had its problems and oil is a cyclical commodity. Many hedge funds have long / short strategies to time the market and the argument is it increases liquidy. However there is something morally bankrupt to pick on a company which all the metrics suggest has a decent future, because low volume and no stamp duty, make it frighteningly easy to manipulate. It ruins sentiment in the company, almost to the point of making it uninvestable which I guess is the aim.
https://www.energy-pedia.com/news/united-kingdom/%C2%A320bn-to-be-spent-on-decommissioning-north-sea-oil-and-gas-installations-in-the-next-decade--predicts-offshore-energies-uk-189716 PFC may get lucky here
If you have access to trading patterns you will see this is a shorting attack aided by the uncertainty created by the RNS. They see an opportunity to recover losses when they attempted to short from the mid 90s and as usual, PFC has obliged. It pains me that us long termers have suffered while these sharks have made between them hundreds of millions due to the SFO/PFC fiasco. Interestingly it is now being suggested after a review of how the SFO operates that they should no longer persist with investigations that require investigation over multiple years.
The truth remains the company has not reported any major wins and perhaps its price may even reflect fair value at the moment. Lowvolume allows the shorters to ply their trade. PFC has always been easy pickings for them with its volatilitlty even in the good times. I suspect they may sense/know that announcements are delayed as GLG seems particularly well researched. We can hope for an Ocado moment!
https://www.cmcmarkets.com/en-gb/opto/petrofac-share-price-hit-by-negative-fitch-rating
Not all gloom but a very slow recovery
There is a lurking fear that the market may actually be oversupplied in 2023 if recession and demand destruction occurs. However this is a share that has been played with for many years by the hedge funds who have made eye watering profits. Glg, the current shorter ( particularly adept) increased at £1.31 and worked hard to get the price down, assisted by the sell- off. The same is true for Wood Group. The shame is should good news come, the price would probably struggle to make much headway. Nothing for it but to hold and hope.
http://www.bnnbloomberg.ca/baker-hughes-orders-surge-28-as-global-oil-demand-climbs-1.1710523
https://mail.shorteurope.com/details_company.php?company=PETROFAC%20LIMITED&land=united_kingdom
Rye Bay have already made a lot of money over the years from PFC
I am not a shareholder here but perhaps one of you may consider it worthwhile to draw the attention of the company/FCA to the pattern of recently reported shorting. It seems to smack of acting in concert which I believe is illegal.
So which scenario concerns you most - the alleged corruption of this terrible company or wait, the fact that it is bound to fail and the balance sheet is worrying you sick. You may just be an obnoxious agitator but please go away.