Hi everyone. I started this thread as FDC - but the copmpany recently changed its name to First Africa Oil (FAO). For completeness (nay, posterity) I've copied the original thread here - only three posts, two by me. So, as you can see I haven't given up trying to let you know about this very interesting prospect in W. Africa on and off shore.

Recently there has been a good deal of very heavy buying and selling since the reverse takeover on 7th Feb by Canadian Minerals comapny Energem's oil interests of FAO, in particular the following RNS on 15th Feb:-

The Company was notified on 14 February 2005 by RAB Capital ("RAB") that, following an
acquisition of 144,930,638 ordinary shares of 0.1p each ("Ordinary Shares") on 8
February 2005, RAB currently holds a total of 144,930,638 Ordinary Shares
representing 9.76 per cent. of the Company's issued Ordinary Share capital.

Now RAB has significant positions in FOGL and FGML and I believe many other similar oils/minerals co's and is no fool when it comes to taking large chunks of highly speculative early ventures.

I've cut out a lot of this as now out of date, leaving just the first post and now, by special request from SWW, here is a weblink and a chart.

Good luck.

Stock Dog

http://www.firstafricaoil.com/index.asp



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seawallwalker--------- I can quite believe it, I'm by nature a value investor and always will be but, I have been bitten by the oil bug, I hold PET (2 years+) CHP,GOO, PELE and SER the last 4 bought from Feb this year. They tend to be more volatile and exciting then value stocks, I'm down a lot on PELE, even on PET but the other 3 i'm into profit, quite nicely on CHP and GOO, I'm just waiting for PELE to score.
2517

georgetrio

you have done well, I have BLR AS WELL, still waiting on OXS to move !! lost big on AEN, NOT sure whats going to happen there !

smiler

the loss will be accounted for if and only if you sell the shares. there are times when one must sell shares and go and find another company. however if the share went down but there is still plenty of value in the business i will buy more shares at bargain price considering the economic power of the business and the market health. if you do not sell; then there is only paper loss till recovery. i bought NMI at 1p but just because of recent Directors selling the share went back to 0.69p. not very nice but i know value is there so i became aggressive buyer. well today the share is back to 1.10 within a month. very nice indeed and i always take my 20% porofit and bank it. Sould be like this all times but life is sweet and sour. sorry to be too long here. best luck

Smiler

on oxs, i think you should check the net asset value (nav) of the company. if the share price is below the nav there should not be a problem. i will be looking at this myself.

Georgetrio

Thanks for that, appreciate the advice just seems a bit slow at the moment (oxs ) I THINK aen is gone !!

Georgetrio 20% of first profit is a good tactic.

I may do that in futrue, it's a way of avoiding a sudden drop and loss as most stocks in this field rarely lose more than that on a dry hole for example.

I admire your accompanying enthusiasm.

I will look again at PVR and FAO because of what you have said so far.

I nearly bought PVR today before I saw you were on those too.

smiler o - I have been around the block with things like PET and PRE and don't feel much like going on another lap.

Good luck with them.

sww

Thanks I am stuck with them for a while i think !! oxs may be ok in the long run ( i hope )

seawall

Ilike PET very much and I hold it for a year then i sold it, reason is, it was a modest holding but i failed to buy it around 29p before it hit 89p. too late, even though, I had it on my watchlist, I learnt from that. i then bought it at 45p waiting for it to drop a bit more so i can increase my stake but it did not happen.
I still think over time it will produce nice value for its investors. If it hits the ground i will pick it up. that remains to be seen

smiler
i will check aen

DYOR - do your own research
www.rnsfocus.com

seawall

yes, profit taking is important where there is no dividend payment and in volatile shares. I learnt from my past mistake but if the company is excellent i try to buy when the sp pauses and is really value cheap. i was also buying in momentum shares, now i stopped, i don't buy anymore a share that is far over the net asset value. i bought Goo between 5p and 6p that was good value then i bought it at 7p just right but i did not buy it anymore because i was waiting for the news. i will buy again at 8p if possible because is top banana but i want to buy it cheap at each level. I think PVR should be bought between 5p and 6p and wait for the next level but PVR is a very excellent company. FAO is reborn and will shine by all means. RIGHT now FAO is more than cheap.

wisebob

I have read all RNS on Aen . its now in the hands on the Bangladesh government but does not look good, but thanks !

georgetrio - fair comments, thank you for sharing your thoughts.

SWW

do you hold ERX ??

No I don't.

I was tempted to do so as I thought they were involved in the recent trials, but unfortunately the more bull I have seen both here and elsewhere, the more the stock has fallen into the mud, and I can't see the truth, so I will pass this time.

On the ERX thread I said I had employed my bargepole, and so I have.

Smiler
i think the case of Aen was a set back unfortunately. hopefully they will clear the mess and handle that but patience is required. i do not hold AEN but in my view if i were in that position i will hold on to the shares or buy few more at this level but this is not easy at all. best luck

hello georgetrio
have you level2 on FAO?
Any idea how much in the book on ask side at 3P today?
with all the buyers, the sp was not able to go higher as 3P

razepy
No, but yes it was all blue today but with the recent overselling, it will take few days before the buyers effect starts showing. it is a very good start though. i think the market really likes the changes in Fao and their new confidence.

Looking forward

Now that FAO has appointed a new team, it is possible to see some shares buying
ie may be Chairman buying shares together with his team. Their support in buying shares will be welcome. However that remain to be seen.

In my view, the first step in making an investment decision is to recognise excellent companies. the next step is to recognise whether the share price is fair, overpriced or expensive or undervalued. however timing is paramount. One should also know whether this is a bear market, a bull market or a sideways moving trend. The common sense is never go against the market trend. As they
say: the market is your friend. Every investor or trader is different but everybody
must control risk, and their emotion. This is not ramping, this is my view but make your own decision so you do not blame anybody else.