hhhmmm........ definitely one of the two possibilities.
whith all due respect MR. GREEN TEA
Let me ask you this:
isnt it a company's responsibility to unlock value and capture hidden value for its shareholders?
many companies have spinoffs to unlock a subsidiaries value..especially if its a growth stock............growing revenues and eventually/hopefully earnings............. in which case your reasoning would hold more water. Fecof is not a growth company YET, it is although a hidden value or future undervalued company when results come in.
when a company <general company> itself is grossly undervalued...not only do they set up a stock buyback.......they may very well take themselves completely off the market and go private again.........only to Maybe go public again at a later time when the market might offer them an opportunity of a higher p.e. and recognition of their worth.
Philex is not undervalued <much> as a whole<reasonable p.e.>, but its subsidiaries are undervalued .....so they are responsible to their shareholders and might have to buy these undervalued subsidiaries outright so Philex recognizes all of the value gained.not just 50% of it.....then they can release fecof and/or fep as a combined company going public at a fair market value lets say 5 years from now<with a higher p.e. /market cap than that given in the private sector. The fact that fecof had no buyers at all today except the market maker filling shareholders<profit takers> sell orders at the bid simply shows that the demand to buy/ and or the recognition of this company's worth just isnt there. Maybe if it was a midcap stock it would get some steady institutional buying.....5 grand a day trading hands for a company worth around 20 million just doesnt cut it.
You base your opinion somewhat...if not mostly on management changes.......but i feel that those management changes need to be done regardless as fecof is slowly gonna position itself as a growth company and maybe bid for contracts itself...........the gold mine is long overdue in production itself. Fecof needs the new managment focus ,actively , regardless.
To do nothing of a takeover and leave the situation as is , Is a possibility but its the least likely.
I base my assumption on the fact that philex made an outright takeover bid for fep already, way back when..........next best thing would be to take over fecof for the same reasoning <undervalued subsidiary> they had for fep.
Takeover possibility is the clear option here.
you may think,,,, OOOOh......but fecof will get the attention and rise in its price when the unlocked value and new partner contracts hit the main street media news......making it a higher market cap allowing institutions with their current restricted criteria to buy into it...........and i reply.......as a philex shareholder i'd be pissed at the board for not trying to capture more of that gain for me instead of just 50% of it.
Fecofs biggest play is its hidden value of fep within feps hidden value of the gas deposits..... therefore philex is just buying up that hidden value/reserves.......not stunting fecofs current nonexistent growth.
to each his own.....glta
