trying hard to regain lost ground

In a day of negative sentiment, ARQ is trying hard to go against the flow !!! The sp always seems to be going against the market movement - oil & market down, therefore Arq is up!

Interesting comments re share price by Eric in the corporate file presentation yesterday. While no names mentioned, there was a definite reference to major shareholders selling and low prices. Lets hope the current prices can at least be our support level until a sustained recovery occurs!

I've pasted comments below.


corporatefile.com.au
Can you comment on the recent weakness in the ARC share price and whether you think that will have any effect on the merger?

MD Eric Streitberg
From our observations and conversations with brokers and shareholders there appears to be
several reasons for the share price weakness. First of course is the macro factors with the
whole market being down sharply, but there is also some reluctance from larger investors to
buy shares as they expect they will be able to obtain stock through the share sale facility
once the merger is completed. Other factors include major shareholders selling enough
shares to cause consistent price weakness in the current market environment. These factors
plus the uncertainty that any corporate activity brings have combined to create a great
buying opportunity for value investors.
We are very confident we will see a dramatic re-rating of the stock once the merger is
completed. We have an extremely active exploration, appraisal and development program
with approximately 40 high value wells planned in the next 2 years. We think that most
ARC and Anzon shareholders recognise this and will continue to support the merger.
This view is strongly supported by what brokers and analysts think ARC is worth. In their
latest research on ARC, each of Macquarie, Morgan Stanley, Wilson HTM and Bell Potter
have a “buy” (or equivalent) rating on ARC with target prices ranging from $1.66 to $2.00.
BBY initiated coverage of ARC yesterday with a “buy” recommendation and a base case
value of $1.84 and a price target of $2.50. These broker reports are available on ARC’s
website when they have been released to the general market. At current market prices we
think, and it appears the brokers agree with us, that ARC represents tremendous value.