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On top of that shorters tend to be highly knowledgeable and skilled professionals who open a short when they see a weakness. If they short the wrong company then they are stuffed.
How many times do I have to tell you that war but Israel and Hamas had nothing to do with petrofac share price. Opposite is true as if war escalates price of oil goes up and that bodes well for petrofac as sector has more money to spend and that means more business. I suspect after bribery and sfo faisco company failed to gain the business the way it used to. That has impacted cash flow as you can't incur these sort of losses in an year.
Hahaha Neil yes I remember ITS and think it is suspended but heyho there are lots of others too. You can bs your way out of them sort of stocks which get delisted eventually but you have chosen wrong stock to "p&d" as it is not tiny microcap "cash shell" which you can influence with your few hundred quids worth of buys. There has to be a reason and bod has not commented on it. In my opinion company has breached convenants
I have seen it with couple of other shares Horizonte minerals being one of them where share price kept on falling and retail investors came up with similar thoughts. In these sort of situations market always tend to be right. All you have to do it just follow the money and share price has lost 50% in a month and it can be "shorters" who are driving the price down. Another think to look at is bonds as bondholders tend to be really shrewd and long-term investors when they are willing to take 50% cut on their bonds then rest assured that they have a valid reason.
Price of oil has benefited from situation in middle east and that should have boded well for petrofac. Market knows something that we don't as don't private investors have these sort of shares. Not long to find out but my guess is that balance sheet needs strengthening and bondholders could be pushing bod for it.
Problem is each year free cash flow is falling and net debt is increasing not an ideal situation to be in. I hope I am wrong but market is smelling blood and some thing has leaked. I suspect we will see a lot of speculative retail money moving in and out but so far mm are not letting anyone out with a profit.
In these sort of situations it is wise to follow the market as quite a few traders jump on bandwagon to have a quick "trade" and sprout all sorts of bs to further their narrative.Problem is it is operating in a very competitive sector which operates on a paper thin margin, a slight delay or inflation can eat into profits and can pull a contract into loss.
Have got caught in it.There is no point in looking for a bottom if shareprice is falling everyday.Market knows something that we dont and equity wont have any value if bonds are trading at 50%.A rights issue is on the card which will heavily dilute or wipe out existing shareholders.
50 cent and when that is case, equity has no value at all.After bribery and corription fiasco compajy was meant to be on solid footing but it did not go that way.Market is anticipating some sort of equity wipeout through rights issue or placing.
Story company spots an "exciting opportunity" several placings later mug punters find out that this "exciting opportunity" was not so exciting but hey ho company has moved on to another "exciting opportunity".Rinse and repeat.
Cybertron I dont think you have any clue about exploration drills.As there are four and five stages after acquiring the asset.Lets for arguments sake say that "government" has ignored all of these major oil players and have chosen upland resources as parner.Upland resources would need to fund drilling and prove up resources through exploration drills. These sort of drills would need atleast couple of millions and not a few hundred thousands.Having said that a duster would be end of this journey.Now here comes the question an asset has been acquired, no exploration activity has taken place and no oil has been proven and company has "£109k" assets and a "mysterious buyer" emerges who is happy to pay £143 millions and bod rejects it without consulting shareholders, all placing shares have been dumped and warrants have been excercised ncad then BOD realises" that takeover " bid was bogus.
Goodbye ring 111 right now as you will be spending many sleepless night and for God's sake learn to do your own research.A part ownership in a technical report is not even a first stage and these sort of drills dont cost a few hundred thousands as you mug punters are led to believe. Why did bod not consult shareholders before rejecting this offer as 90% of mug punters would have been happy to take half of offered price.