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Waseem Shakoor on Frontera – no money, no CPR due, no JV imminent, Varang walked?

By Nigel Somerville, the Deputy Sheriff of AIM | Sunday 6 August 2017


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


I’ve have a bear of AIM-listed Frontera Resources (FRR) for as long as I can remember. Perhaps it is the accumulated losses over the years of a whopping $479 million. Maybe it is the slide from c. 150p to the current 0.115p. Perhaps it is the boat load of confetti issued of late to settle debts. Maybe it is the delayed work on the South Kahheti gas assets. Whilst it seemed a slam dunk short at 0.42p per share (it was, now at 0.115p) there still seems to be more to go.

Thursday saw a shareholder briefing, and on Friday the shares dropped 22%. Oops. Anyone would think that there had been an RNS, but no. And apparently no new information would be released at the meeting.

All this may be a puzzle, but I see that Waseem Shakoor seems to have got a handle on things with this tweet:

Could it be that this came out of the shareholder meeting?

Meanwhile, with a new broker (WH Ireland) freshly in place with a mandate to provide better engagement with….new shareholders it seems a slam dunk cert that there is a placing on the way, although it doesn’t sound like the shareholder update meeting was quite the success hoped for.

With the share at 0.115p, I wonder how big a discount the bucket shops might want in order to get involved?

As ever, this stock is a sell. 


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