Thursday 31 July 2014

Morning Mumble (via email): Afren Plc Suspension of Directors Pending Investigation

Morning, hopefully this works as an email update.

Afren's news Suspension of Directors Pending Investigation does not bode well for the company in the short-term until further clarity. With the RNS obviously raising serious concerns: The Board has no reason to believe that this will negatively affect the Company's stated financial and operational position, the publication of the Company's Half Year Results due on 4th August 2014 will be postponed." So having purchased equity recently (one of the few I hold long in equity with more recent purchases at 140-146), I have elected to opening positions pending fill @Circa 99/100.

Atb Fraser

4 comments:

  1. realy enjoy your blog , thanks. I sow you cover AQP recently, could you help me with this?

    As of 30 June 2014 major holdings

    HSBC Custody Nominees (Australia) Limited 110,254,065 7.53%

    J P Morgan Nominees Australia Limited 69,919,771 4.77%

    NEXT SECTION IS FROM RIGHT ISSUE PROSPECT


    As at 11 April 2014 (being the latest practicable date prior to
    voting rights publication of this Prospectus), the Company had been
    notified of or was otherwise aware of the following
    Shareholders who were directly or indirectly interested in 3 per
    cent. or more of the issued Common Shares


    Investec Limited . . . . . . . . . . . . . . . . 46,484,638 9.52%
    The Capital Group of Companies . . . 34,052,832 6.98%
    Wellington Management Company . . . 33,780,773 6.92%
    Kagiso Asset Management (Pty)
    Limited . . . . . . . . . . . . . . . . . . . . . 27,646,475 5.66%
    Savannah Resources Limited . . . . . . . 19,004,767 3.89%
    FMR LLC . . . . . . . . . . . . . . . . . . . . 15,762,152 3.23%

    Why did not we have any RNS when the bought/sold shares above/below the 3% threshold?

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    Replies
    1. They have in essence by reaffirming the positions, however the others may be completing purchases or sales and are not obliged whilst conducting their trade. The holders in AQP I'd not be worried about in my view, I'd be more concerned about the quality of the company. Is AQP viable???...having stock in a company where the management are from AQP, its a contradiction to my current view. I'll perhaps consider looking at the platinum sector in depth in a few weeks...Look at the ETF's on Platinum and more importantly what the value would mean to bottom line. There's plenty of gold companies selling at 10% discount to market to improve their finances. It is something on my return from my holidays I will be getting involved with directly. This may impact on PGM companies needing greater liquidity....if you think similar. Off to drinks (Leggie watch out for photos)! Atb Fraser (p.s. leave a name (1st name at least) ideally so I can keep track of who's saying/doing want).

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  2. I'm loathed to turn this blog into a tipsters page, my analysis on Afren I believe is correct in terms of value (it was an overreaction as the rumours suggest there's no direct impact on Afren's bottom line; that's if an investigation proves such a thing it may all be smoke). So for the messages posted about when I will sell, do sell etc...I won't be posting these. Having picked up further positions today, they were risk trades to enable me to increase my equity holdings over (a hedge). This is one of the advantages of reading the RNS’s properly. Cheers, Fraser

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  3. Fraser- yes- nice move re AFR- my fair value alarm was going off when they approached £1.50 so anywhere near £1 was too strong a reaction from the mkt. I got in at £1.05 and will play a long game, albeit this drop and the possible decapitation of senior mgmt. (if proven) puts them further into play for the majors imo at least. The portfolio is stuffed with interesting fields and discoveries, the prod in 2014 will drop to 40k boepd (from 47,112 in 2013) as guided but should pick up from 2015 onwards and the sum of the parts looks v good to me, albeit this is fairly common in o&g stocks at present.

    Re TMI.B- I tried to add last night into the dip, which just seems to have been triggered by a messy sell order, nothing fundamental that I could see. I will try again later as I have more tranches needed here and 10c seems silly, but 2/3 years is too long for certain types. I wont be able to buy at 10c but the odd cent wont matter too much in the longer run.

    Cheers. The Leggie

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