Friday, August 26, 2005
Fayrewood receives approach, shares up 25%
I mentioned in my last blog on Tuesday, that the Fayrewood interim results would play a crucial role in portfolio returns.
Fayrewood announced an impressive 7.1p earnings for the first half of the year and robust trading in a tough market. The shares surprisingly fell on the news and fell some more the next day, over concerns about Fayrewood's ability to generate cash as a business.
All this was put well into the shade however by the news today that the company has received an approach that may lead to a bid being made. The shares were already well up on the morning but went on to rise another 15% or so to end the week trading at 126p to sell, versus my average buy price of 111p.
With Dana Petroleum continuing to make new highs, pushed higher by the force of rising oil prices and this resurgence from Fayrewood this could be my portfolio's best ever month yet. It looks like August will more than make up for July's single percent dip.
The Artful Dodger
Fayrewood announced an impressive 7.1p earnings for the first half of the year and robust trading in a tough market. The shares surprisingly fell on the news and fell some more the next day, over concerns about Fayrewood's ability to generate cash as a business.
All this was put well into the shade however by the news today that the company has received an approach that may lead to a bid being made. The shares were already well up on the morning but went on to rise another 15% or so to end the week trading at 126p to sell, versus my average buy price of 111p.
With Dana Petroleum continuing to make new highs, pushed higher by the force of rising oil prices and this resurgence from Fayrewood this could be my portfolio's best ever month yet. It looks like August will more than make up for July's single percent dip.
The Artful Dodger
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