FLR looks like an excellent opportunity for a patient (2 year) investor. The September presentation by Management posted as an ASX announcement shows:
1. The company has put in seven years of effort to achieve current status. 2. Olive groves now total 760 ha. 3. Processing/bottling plant is operational 4. Marketing success locally (Coles and Woolworhs) and exports to China 5. Balance sheet is strong after $5.8 m fund-raising. 6.EPS will grow from 0 to 10 cents between 2007 and 2009. 7. Assets per share (including intangibles) are $1.03
It seems hard to believe that all this is on offer for 21 cents per share ($10 m for the whole company!).
Of course there was some bad news which sent the share price plummeting from 30 cents to 16. This is contained in ASX news on the same day and is an unconvincing legal claim for outstanding fees on an unrelated project .
First quarter sales rose 168% and the current quarter is also expected to be strong.
I'd expect FLR to be a real winner for 2007 and the risk is low.
I'm now a holder.
FLR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
