They key basis that this could be undervalued is if the raising proceeds.
However, I've posted before that the current business is nothing special. The "growth" by acquisition was basically like putting together a patch work quilt - only without the end beauty.
The business itself, IMO, has very little going for it. The detail that Finch posted essentially confirms that.
If you chose to invest in this stock it's worth looking over the various acquisitions, and financials, of the past couple of years and ask these questions:
* How have they generated a stronger brand? * What sort of brand profiles were purchased in the first place? * How do the purchase prices compare to what should be expected in this industry? * How much organic growth has this business been generating? * Financially speaking, based on market position including brand recognition, acceptance, and strategy, how will this business grow bottom line earnings in the coming year?
I don't know the exact answer to all the above, however what I do know doesn't excite me.
Not saying FFF is going or will go bust. And I guess most stocks, at some price, represent value. Not sure what "value" is for FFF hence my disclosure.
MJS
FFF Price at posting:
1.9¢ Sentiment: None Disclosure: Not Held
