Recent activity and fall aways....30 Oct 2013 06:58
Have we just witnessed yet another perennial and almost traditional sp spike in FTO again? Doubtless, its a question on many long term investor's minds.A quick look at the 5 year chart,would seem to indicate,it may very well be the case indeed. Anything approaching the 12p range, always ends up with the same outcome. A fall away, with many feeling they have yet again missed there selling opportunity. Can we now expect a fall back to the 6/7/8 pence range, waiting for another bounce,so this time,we really will sell out?
Recently,an article in Tempus said that its clear the city doesn't trust FTO,hence its low valuation. Yet despite this mistrust,FTO has got on with its main business,which is gas. Regardless of the city's valuation, FTO just received $200m in cash in first payment for the sale FGIH and has already disbursed nearly £40m in a special dividend.Not to shabby for a company not to be trusted. From the 1st of November, they have the right to receive another $200m in deferred consideration shares in CGH based on the prior 30 days closing price average.
$200m at today's HK$ rate and taking an average CGH price of even HK$9 per share would give CGG another 172million shares to add to the 15.26% stake they already jointly own. CGH has recently issued another positive profit alert and appears to be moving into a tremendous growth phase..With associate status still on the horizon and growth from other divisions in for nothing,I think we could possibly be in for a few more pleasant surprises as we attempt to scale our12p peaks again...
GLA..
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