The rate that CFE were able to negotiate would have been well below the actual value. That is how Sage works and that is why he has been able to build up a great asset base for CFE. CFE had the cash that others were desperate to obtain. I would assume, on past performance, that CFE would have wanted to get the URL holding at well below half the value.
So assuming that they valued the shares at over 3.6c ( based on the issue price of 1.8c) then there is a margin buying at todays price of 2.2c. Working on that basis I have entered the stock today. I treat it as a spec but with not a lot of risk because of the holding by CFE.
Time will tell.
URL Price at posting:
22.0¢ Sentiment: None Disclosure: Held
