standup

standup mate i think you have missed the point

you are focusing just on the tax losses, as in that is the only thing that this play 'has or had' going for it depending upon whether or not they can be carried forward. the 'potential tax losses' were just one thing that i liked about this shell play.

lets for one second 'assume' that the tax losses cannot be used by the purchaser of the company (i am not saying this, but just for example purposes).

the company is still a shell valued at $2 million searching for acquisitions and projects to back into it. they have enough cash to stay listed for 2011, as they have stated. so it is fair to expect that they will have to source a project this year sometime.

so even without these tax losses, consider where the SP will be in the event they announce a deal ... whether it be in resources, voip or whatever etc. look at the action on ROB recently. they have less cash than us and no potential tax losses to debate over, yet their SP is moving strongly on speculation of a deal.

even if FRE didn't have these potential tax losses, i would still be a buyer given the MC and timeframe for them to source a deal. like i have said all along, it is a shell play. the thing that drives the price is speculation of a deal and the eventual deal. i still consider this a good punt with or without the tax losses.