Post by
taal on Dec 11, 2021 7:03am
My Take
On Sept 24 Fronterra announces a rights offering...an exciting one at that where All shareholders could participate as long as you owned stock as of Sept 29...There were app 45 million rights available at conversion price of 1.63 for a total of app $73 million..and if shareholders didn't want to participate then Fronterra generously agreed to step up to the plate and convert All unexcersized rights...Now you had to own shares as of Sept 29 to qualify for the rights.Volume up till that point was very low so I'm assuming the majority of eligible shareholders were existing shareholders.Exciting times ...We had a floor price of 1.63 Guaranteed by Fronterra ...wow we all going to make money on these rights...NOT...Within 2 trading days up until today we have Never traded over our Guaranteed floor price.of 1.63..You would think if Fronterra is willing to spend $73million Can. and pay 1.63 then the share price Must be worth Much more ...Not.. Here we are close to the middle of Dec on one of the most exciting wells Anywhere .And we sit at $1.03 Never ...never would I have imagined this scenario. Right from the first announcement of this offering Fronterra had No interest in letting the existing shareholders participate. From 2 trading days into October till today we have Never traded higher than 1.63.. So since October till now this share price has been kept under wraps.. These gangsters have kept a lid on our share price and someone has been accumulating shares for 2 and a half months...and am pretty confident the majority of shares have not been bought by new or existing shareholders...No promotion...no updates...not a word...This send a clear and loud signal that Fronterra did not want the retail shareholder participating in the rights offering....they don't want them buying shares...(why would you with the price tanking.) They must have and do have a pretty good idea what they are sitting on..Trust me if anything is worth having you and I are the Last to know..Theyve done a marvelous job of keeping the share price Depressed along with its Shareholders...As Oil run has said Make Sure you have a seat at the table...The song is about to end... Good luck to Everyone.... ..
Comment by
Harel1976 on Dec 11, 2021 10:51am
Its funny how blind investors can be justifing their investment, fec is paying overprice because its money going from one hand to the other, fec needs to keep cgx from bankruptcy on failure because it owns cgx!
Comment by
Mat1791 on Dec 11, 2021 11:57am
You need to keep reading... Your grasp of "shareholder's equity" is incorrect. Hint, it's not literal.
Comment by
Mat1791 on Dec 11, 2021 12:25pm
Dirk, Current share price of a company is very rarely book value ( shareholder's equity / outstanding shares) Current share price is based on the markets perception of some future value. 99% of shares trade at values based on discounted future anticipated value.
Comment by
Miftee9 on Dec 11, 2021 2:58pm
Like I mentioned before. Downside is $1 maximum, upside is $20+. I like that risk reward given all we know about the area and the concession.
Comment by
Miftee9 on Dec 11, 2021 2:54pm
Yes. So the balance sheet only tells part of the story. It is an exploration company. So they usually show large losses until they hit it big or run out of money. Fortunately, someone is not letting it run out of money. Lets hope they hit it big and then we wont have to worry about running out of money for a very very long time. All the best to everyone.
Comment by
Mat1791 on Dec 11, 2021 3:51pm
Dirk, The tech sector in early growth stages typically will have your above situation. Don't worry about the balance sheet. We are paying for what we think they will have, not what they've booked today. Jeez, negative shareholder equity never stopped Amazon's shares.
Comment by
Mat1791 on Dec 11, 2021 9:13pm
So... Your reasons not to own CGX, are a result of incorrectly applying blue chip fundamentals to a speculative, wildcat, penny? And your reasons to own CGX, are based on the posts of a B.S. baffles brains artist? Wow...
Comment by
Dirksidetrack on Dec 11, 2021 2:12pm
Wow! Have you read Madmike's trashing of the company? We were just trying to mitigate his and your's damage. Your current damage is trying to discredit us knowing that myself, Clouder and Dfly are oyl bulls supported by comments with credible sources that indolent people like you can verify for themselves. Quit trying to trash oyl please!
Comment by
AnMar on Dec 11, 2021 6:30pm
I'm afraid you are mostly correct MadMike; it is a case of "the inmates are running the asylum now".