Member Info for Treadstone

Anyone thinks this is due a bounce back. Looks like its getting over done to me...

Daily Telegraph's Questor column featured a furher buy recommendation for Petra Diamonds. That may account for todays rise but prospects should drive the sp higher in the short/medium term. Not in this anymore but should have been though timing an entry here would have needed careful consideration.

Not in this one though its been growing well and producing excellent financial results.. ie rising sales revenues and profits. So why this is getting hit so hard makes no sense. Is not a tech stock or a speculative pump'ndump. It's a bread and butter business hiring equipment to the construction industry particularly in the USA. If this continues dropping further it must be a definite buy though the Investors Chronicle has been saying its more than fully priced at over 9.50p. Well worth watching for an entry point should the market bloodbath continue.

Mos is a good business messed up by Agentina's economic woes and exchange controls. Any share involved with that country is best left alone.

Who knows with the market........

Checking the figures profit for six months until jan 2014 was only £233,000 odd but for the same period for2013 it was around £1.3m. That accounts for the sp tanking by 50%. Company says business is picking up this year but gives no details but generally business has fallen off considerably affecting the profit line. So if this reaches 70p you wil have done well. Business does'nt really justify much above the mid fifties imo with profits down 80% plus, then again the herd mentality of the market can easily go against the grain of common sense when it comes to a quick profit.

How high is this likely to go ??

Looking back over a couple of years this stock has been range bound between 8-10p, which is partly why I never looked at it in depth. If I remember and don't shoot me down it was or is involved in coal bed methane. I think for those who bought in below 10p and have waited patiently for a long while now, your rewards should be coming along this year in the form of a decent re-rate. The market however is a strange beast and acts in a contrarian manner. Sentiment is a powerful driving force favouring certain sectors and damning others nevermind the fundementals. Junior oilers have taken a beating since the end of 2011 but I detect this may be coming to an end. First the junior miners got upgraded and now perhaps its the oil cos turn to bask a bit in the sunlight. The problem has been that most oil and gas explorers don't make a profit and the market gets fedup with promises of jam tomorrow and tomorrow never seems to come along. A lot of finds are made in awkward places where the ability to reach markets awaits infrastructure that can take years to construct and then political problems jam up the works on top of everything else. These type of companies have to scratch around for farm-in partners and dilute their stock to raise survival cash to keep going. FTO does appear to have a lot of shares in issue but at least its profitable on its own operations and the shareholding in China Gas is a massive bonus. If the sp pulls back a bit I might buy but at the same time I have to admit I missed the opportunity to get in below 10p. The problem with share tips is that the market does'nt always react the way it should. My timing of entry in Iqe and Tpl bear witness to that. They should be alright in the end. Timing is everything in buying and selling stocks.

Cont'd: Ultimately, though, it will be the massive fair value mark up in Fortune Oil's holding in China Gas that will catch the attention in a few months time. And it's not as if the shareholding is'nt a solid investment as China Gas continues to expand its share of the domestic piped gas market and now has over 7m connected piped gas users and assets worth over £3bn. To give you some idea of the scale of operation, China Gas has 20,000 employees who work on a total of 170 natural gas projects, nine natural gas pipeline transmission projects, one natural gas exploration project, and 44 liquid petroleum gas distribution projects. It is a truly vast operation, not to mention a profitable one, with the group's pre-tax profits soaring over 70% to £185m in the six months to the end of september 2013. What is also clear is that Fortune Oil is being chronically undervalued. A bargain rating of 0.33 based on the last set of accounts woefully underestimated the true book value of the company given the hidden value in its shareholding in China Gas. BUY.............................END OF. ST does'nt give a projected value of FTO but its interest in China Gas is bound to grow in value over the years if a 70% leap in profits in six months in anything to go by. Any thoughts on this...???

Right here goes the two finger typist: From IC dated 7.2.14. Fortune Oil is a company well worth investigating because there is an obvious value to exploit. In fact, I would be very surprised if it is still listed in a year's time unless the shares are re-rated significantly. To understand why, it is necessary to unravel a series of complex transactions that have resulted in Fortune Oil owning outright 184m shares in Hong Kong listed China Gas, or 3.69% of its share capital, and a beneficial interest in 732m shares of China Gas in a joint venture China Gas Group Limited. Perhaps its the complexity of these transactions that has made it difficult for investors to unravel the true worth of fortune Oil. However, by the time the company reports its full year results in April, it will become obvious to all that Fortune Oil is sitting on an investment worth several times its own market value. Having seen its share price surge by a half since the middle of last year, China Gas now has a market value of HK$52.5bn, or £4.1bn at current exchange rates, based on 4.98bn shares in issue and a stock price of HK$10.80. This means that Fortune Oil's direct investment in the company is worth HK$1.93bn or £150m. In other words, with Fortune OIl capitalised at only £234m, this stake alone covers almost two thirds of its market value. In addition Fortune Oil in effect owns another 366m China Gas shares worth £300m through the aforementioned joint venture. Or, to put it another way, if fortune Oil was to sell all of its china Gas shares at market value, then it would realise the equivalent of 17p per Fortune share, or almost double its share price. And because Fortune Oil will be marking its assets to market value when the company reports its full year accounts in April, the HK$2.50 rise in China Gas's share price since the company's half year end will lead to a huge uplift in its own net asset value. In fact I reckon it will add HK$1.38bn, or £107m to une Oil's book value and means that the company's net asset value is now at least £434m, or the equivalent to 16.7p a share. Apart from these stategic stakes, Fortune Oil owns a natural gas business that generated operating profits of £8.9m on revenues of £49m in the first haf of last year.. The company is also a shareholder in a joint venture aviation fuel business, Bluesky, which reported net profits of £21.3m on£1.1bn of revenues in the same period. To be cont'd:

Agreed but wait until I type up ST's article. Its a special situation here

Will try and get around to it soon.

Not in this stock but should have been. The reason its risen is that FTO appeared in Simon Thompson's bargain shares of the year in the Investors Chronicle of 7th Feb. You can see the immediate jump on the date from the share price graph. Good article by ST. This one is owed a significant re-rating mainly due due to hidden value in its holdings in China Gas.You need to read the entire article I have'nt the time to type it out now, but if you can't locate a copy I'll conside doing so later if you like.

Despite a difficult market you'd think today's Rns would encourage investors interest in this. With figures ahead of market expectations due to be released shortly you'd think the sp might climb. Especially with analysts valuating the company at 101p. Just part of Aim aberrant behaviour I suppose.

Actually news flow has been fairly good here, just getting frustrated with a directionless market.

Share price looks as though its going to fall out of bed. Apart from this not being a penny stock to tempt in investors, the company has provided us with little newsflow at all thus leading the market to think all is not well here. A big mistake not to deliver quarterly trading updates imo.

Sp moving well with good volume. Will the move north continue this week ?? Syqic ipo delayed by documentation problems apparently so probably not today. Will try to find out more.

Thinking of this issue of not being a penny stock, Allenby Capital's issue Macromac is doing better from a lower issue price and today is rising quite nicely. In fact its risen considerably from its recent ipo date. Without even much news. I see from the Daily Telegraph 18/11 that Allenby Cap. is launching another tech company SyQic next monday 8pm. Details are on the web but we'll have to wait for an RNS 7am for proposed market cap and issue price. No details on that at the moment. I might have a dip myself.

Bid price remains at 0.76p offer price 0.78p so spread narrowing on usual low volume of trade. Interesting. Sp has never been lower than 0.82p on the offer for a long while so this is a pivotal point for Rci. Is it going to continue to fall or turn around ??

From today's Investors Chronicle, which is doing a spread on small tech stocks. Others (tech stocks) are targets themselves. Delcam has received an offer from Autodesk at a 21% premium. Looking for other potential targets, we think of Accumuli (ACM) target price 19p, Corero (CNS) target price 30p and Intercede (IGP) target price110p. All have sought after products in the high growth iT security sector. ...End OF Thought this might be of interest. Not in CNS myself yet.