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Frontier Mining – delisting vote on the way, but 83% up in a day on no news?

By Nigel Somerville, The Deputy Sheriff of AIM

28 February 2015 04:38

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As discussed HERE there is already some explaining to do with regard to how shares in Frontier Mining (FML) fell 28% ahead of a delisting RNS back on 17 Feb. The stench of Insider Dealing was hard to avoid and I trust that the authorities will be taking a very close look at that. But yesterday, Fri 27 Feb, Frontier’s shares went on the rampage in the other direction, closing fully 83% UP on the day, on absolutely no news whatsoever. Not even after hours.

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Comments

J P Spaghetti

28 February 2015, 06:20

Very odd. A short squeeze perhaps? And maybe the trades above 0.06p (which were very small as far as I can tell) resulted from forgotten limit orders…
wildrides

28 February 2015, 07:12

With respect Nigel ……… when you have very small share prices the sort of figure you are quoting are meaningless in % terms . 83% of feck all is still virtually feck all . You need to go back to basics and look at the trades . The spread alone is massive in % terms . People are just speculating on an offer coming in as the price is so tiny . They are suspicious of the motives of the directors and major share holders who they think may be trying to steal an asset from them by de listing just as in BHR , BAO and all the others . Its an old trick …………. even hibu did it . Just manage the share price into oblivion for the managers or someone else to pick up the asset at a snip .

We are starting the “blood on the carpet” era that you get just prior to an sector upturn . People will try to position themselves very favorably picking up assets cheap during this phase . They are sensing the opportunity that a bit of ruthlessness at the bottom of the market can bring wealth to them for the next 10 years.

Its a disturbing site ……… but revolutionary and oft cyclically repeated .
nigel somerville

28 February 2015, 09:16

JP – not so sure about a short squeeze or forgotten limit orders. Given the unpaid debts I reckon the company is pretty much doomed unless there is some kind of deal with creditors, but as per Afren why would the bondholders not just seize the assets and leave the shareholders high and dry?

Wild – well, er, yes the company is valued at Sweet Fanny Adams and as such a near doubling doesn’t really change that. but the fact is that the shares did nearly double. Why? More insiders this time dealing ahead of more favourable news? That would be a criminal offence. Some twit thinking they know better than the RNSs and then others jumping on board? Then a statement to clarify is needed to protect. I do rather agree, though, that the idea of a restructuring being easier as private company does suggest that anyone staying the course will be shafted (again). Who will gain?