What should the Share Price be ?, page-62

Re shell value, lets use acl as an example.

acl is a nice clean shell, I like it and hold.

They have a $3.6m mkt cap, and $1.536m in cash at the end of last quarter.

So the shell there has a value of $2m according to the market. Although acl has been valued double (mkt cap) by the market, so then the shell has been valued at over $5.5m.

Now ftt has a mkt cap $2.5m at 3c. $4m cash, with a $2.5m spend this quarter. Lets stick with that, as there might be some extra wind down and redundancy costs (not that they have many staff). But there will be no spending on projects now. In fact I wonder how much of those costs were forecasted upon expecting a positive result which will now not occur.

In May ftt received a $1,23m r&d refund, but that was just for a six month period, so I think $2.5m can be expected next time, but maybe more as they have spent more this year.

So at 3c, ftt's shell is being valued at $0.5m - compared to acl's $2m and poh $3.2m (and that's despite facing possible huge ($5m plus) court costs and damages).

But the ftt shell value of $0.5m (at 3c) gives no value to ftt's cash in the bank and a possible $2.5m r&d refund.

So $2m minimum shell value plus $1.5m cash in bank plus $2.5m rebate is $6m or around 0.75c per share. Even if those figures are lower, a 0.6c a share current valuation is most reasonable imho.

cheers