This stock certainly won’t be going to zero, the books are strong, but possibly the hardest decision could see the best return.
Depending on the opportunity put forward on the 4th October, the best move forward may be for share holders to insist on the company being wound up via an EGM.
Let’s look at the benefits of winding up the company.
The current share price is a reflection of uncertainty, if the new plans result in ongoing uncertainty then the share price may decline further and it would be assumed may stay down for a lengthy time until a new direction starts playing out in profits. The share price under this plan could flounder for years ahead especially when you factor in a more regulated business environment.
When a company is wound up, company assets are redestributed to the share holders. If the company is wound up swiftly the return to investors (by my estimates) would be somewhere between 19 and 29 cents per share. A far cry from the current 13 cents or possible years of foundering sub 10 cent share value of a company forging a new direction.
The company has solid books today, but every day the company continues without a new income stream those books worsen, cash it in today and avoid years or risk, depreciation and erosion of share holder value.
Think of this as one of those 1980’s Wall Street style Take overs, let’s carve this up and get on our merry way. I know my money can work better elsewhere and if we sit back and let the company search out it’s new direction we may never see a share value of 19 - 29 cents again.
This is an open suggestion and forum, please jump in with thoughts and figures. I am deadly serious about discussing this as our best option.
Further we may find Keith Cohen with a personal interest of 46,000,000 shares may lend his ear to this idea, alternately we share holders can continue to live in fear that Keith may wish at some stage to offload his holding, effectively acting like dilution to all other share holders.
Please put forward your thoughts.
(Everything above is my personal view only. This is not to be taken as advice. Do your own research. Have an opinion.)
FIG Price at posting:
13.0¢ Sentiment: Hold Disclosure: Held
