re: Ann: FIRSTFOLIO SIGNS HEADS OF AGREEMENT ... MRblu,I feel...

re: Ann: FIRSTFOLIO SIGNS HEADS OF AGREEMENT ... MRblu,

I feel FFF is under the radar still until the investor is named in the recapitalisation.....
I am thinking MQG could be behind this as they are trying to build lending through YBR etc etc.

The big banks want market share and what easier way to get that than by buying into a mortgage company like FFF. Buying 50% of the company is cheaper than a full takeover as per FFF pending transaction.

I presume the funds will pay down debt and a re-rating from the market will follow hence a share consolidation on the cards post share issue.

New directors will be in charge and remember the current directors have skin in the game at much higher levels so they wouldn't have agreed to the deal if the funds were not used to pay down debt to get the share price rising.

I am tipping a 7 cent price target in 12 months pre consolidation price times any consolidation ratio.