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Real-Time news about Fund-E Inv (London Stock Exchange): 0 recent articles
|amorruso: This is now very simply a straightforward punt on either losing most of my investment or multi-bagging big style from here. I only invested money I can afford to lose and am prepared to lose out so have no strong view on this now. Even although I am convinced that the land is as good as sold because these directors seem to specialise in screwing up!
However, the share price here is only doing what all AIM stocks are doing, it's not company-specific but the directors look to have screwed up big time here.
You would have thought that with directors who have specialised in reverse takeovers in the past that they would at the very least have had a Plan B if they thought that they may not develop the land. Now they only have around £14k in cash and the clock is against us i'm afraid. This is also mirrored in the lack of director buys at such a low level.
I understand that around £100k would have went on wages for the three directors over that 12 month period!! What a cheek....and their treatment of small shareholders is a disgrace imo.|
|amorruso: None at all KAMPY but directors are needing hung for incompetence. There is a total lack of desire to communicate with shareholders or potential investors....shocking!!
It is more than reflected in the share price though....|
|catswhiskas: will02p - 10 Apr'08 - 10:25 - 1504 of 1506
What does £2M equate to in share price?
After they have repaid the loan on the land it will equal todays share price of around 0.08p which means weve been well shafted .
Whether we see any of our money ever again will depend on if the directors can return any value by doing an rto.
Pretty much a write off as it is Im afraid but its not going bust so whilst its around theres always the chance it can pull a rabbit out of the bag.|
|will02p: What does £2M equate to in share price?|
|amorruso: kinbasket - 26 Mar'08 - 17:23 - 1442 of 1443
Hope that comment isn't directed at me...I can assure you (100%) that FEI will not delist!! The next few days will prove me correct...it doesn't take a rocket scientist to work this one out. At March 2007 cash was £156k and short term creditors was around £920k i.e. less than one year. Construction was to start in Oct but did not as they had Planning Permission application to increase to 95 flats. Salaries are around £100k for the year (according to a conversation that I had with a director some months ago) therefore they need more cash now!!
Either that a sale of the land and a reverse takeover with some other company reaping the profits and a major multiple in the share price.
It is a gamble but as I know the site and see what is going on then I am going for the RTO.
|amorruso: CatsWhiskas - 29 Feb'08 - 13:32 - 1391 of 1391
The share price is being kept low intionally by the directors (hence no announcement about recent Planning) to allow Reverse Takeover to happen. It is in the new directors' (of RTO) interests if they can board at a lower price in order to make more money and a lot easier for the exisitng directors to strike a deal!
Quite simple.....think about it.
|amorruso: I've got a shed load of these now but must admit that the management team here should get shot for the way that they have managed shareholders' expectations. That is more than reflected in the share price though at £1m market cap.
The only justification for keeping the price so low would be to facilitate a reverse takeover at some point which was an option for them. They will need to update the market before the end of March re results but in any case the demolition company is about finished on site and the construction work will begin soon.
Must be the only time i've known any construction project in the area with no details on builder or house prices etc. Would be easier getting blood out of a stone!!
|chancer6: I questioned him about how the share price had fallen from 0.25p since our last conversation. He put it down to a liquidity issue and I got the impression that they will put a concrete RNS out after christmas which will take care off the share price.|
|amorruso: I agree that is significant to some short term investors but what delighted me was the tone and the wording of the results statements on Friday. I know the Scottish site very well and I work in the risk management industry running my own business so I know that this investment represents a low risk - albeit potentially spectacular return on my investment.
It should be highlighted that there has been some forced selling in FEI over the last few months as an investor had to get out and this helped to depress the shares - but this will clear soon. I gladly took a fair chunk of this some months ago when I added to my holding but the seller has sold in a fairly orderly manner via the market makers. However, this has helped some fortunate buyers get a decent line of stock at a premium price - including me!
Over the next few months volumes should pick up and I have no particular view on how the shares will react over the coming days however my longer term view is very bullish and FEI could very easily be a 20 bagger or even more. All that matters to me is the outlook and the new investments, but the bottom line will be when FEI do a reverse takeover or complete the 'material corporate transaction' that they alluded to last year.
The fact is that the company can openly state (if you call them) that the demolition company will be finalised this week but 'they don't yet know who will be the construction company'. Under the CDM Regulations 2007 FEI have a legal responsibility as client dutyholder and they will know who is lined up for that job right now. In local circles the rumour factory suggests that things will move at a very fast pace now and some names have been mentioned. This all points to a material corporate transaction taking place between now and then and possibly resulting in a reverse takeover. The effect of that would mean a multiple of the current share price and the current £2.5m market cap!
Don't forget that the directors have invested around £800k from their own pockets on this one and things will hot up pretty soon now. They also stated on Friday that, 'Using the considerable property expertise within the board other property opportunities are being considered and if found to offer good returns will be pursued.'Suggesting that more is in the pipeline.
My view is that there has been talks on-going over the last few months and this stock will look much different by the end of 2007. It is likely that the stock will initially double (due to lower risk and expectations of further deals) after breaking out of the 0.27p area resulting in a quick return for vigilant investors but it is the ones who will be more patient that will reap the big benefits - and it is the big move that we should look for when investing in a stock like this. One of the directors,Dr Al-Dimeshki, is an interesting character with an investment in many technology as well as property companies and his Middle Eastern company grew rapidly from a modest base of three staff to the current 50 and assets exceeding 150,000,000 CAD. He may well play a bigger part than what he has done recently now that things are beginning to happen. The other directors have a track record of RTO's and subsequent price multiples so we shall see.
FEI is off the radar screen of many but currently represents the best value in the LSE in my opinion.
There are some shares that you wouldn't touch with a bargepole, and at first glance of the financial accounts and history of Fundamental e-Investments (FEI) then this stock would fit firmly into that category. But, the shares have come alive a bit over the last couple of days on heavy buying volume that forced the company to issue an RNS saying that it didn't know the reason for the increase at 'this stage'. Therefore, firmly implying that something will be afoot over the coming months.
I have been watching FEI for months and adding as the price has fallen (due to a distressed seller and insti) moving out as I probably know much more than other investors about what is happening with this stock that will be off many investors' radar. This is a tiddler with a market cap of only £2.4m and, of course, there are pros and cons investing in this type of stock just like there are with warrants but only being that much more liquid. FEI looks very speculative at first glance but when you dig deeper and realise the hidden assets then you begin to realise that this is the type of share where fortunes can be made!
Until last year FEI was buried in with the living dead on the LSE, however new management moved last year as new Chairman Stephen Thomson looked to work a near miracle in turning the company round. This is an ideal shell with an ultra low share price, very low market value, solid assets, and control by a quality management team.
If you are confident then you can move in and sit with the new team and multiply your shares over and over again but not one to trade in and out of. We are talking about management who have done this trick several times before so we are managing our risk accordingly. The management team here drastically reduces the risk profile.
FEI was a complete basket case of a stock with little hope until the new management boarded the operation with very little fuss around 18 months ago. The idea being that the new team would save the company from almost certain liquidation and sell off any assets that they may have, and pay off the debt, and then sit with some cash as a clean cash shell. This they did by selling off various small business interests and by having a share placing towards the end of 2005 by issuing 703,926,304 shares at a price of 0.125p thus raising £879,908 before expenses. Due to some warrants being exercised recently the share count is now 1,089,826,447 shares.
The originalboarding and placing operation was as low key as you can possibly get but remember that the new management team don't want a soar away stock price at this particular stage - they want it low so they can get as many shares as they possibly can for themselves. The new management team stuffed their pockets full of shares and put their money where their mouths are. Stephen Thomson bought 40m shares in the placing and Jonathan Nelson bought 80m shares and these guys have a big proven track record. Thomson is the guy who turned Turnpike into Medical Solutions several years ago which became a near 100 bagger at one point!
An interesting non-executive director is Dr Al-Dimashki who owns 25.4% of the company in addition to his other operation Mubeen Corporation which owns a further 24.9%. Thomson and Nelson each own 7.34% and 10.38% respectively with another institution owning 11% from memory so the shares are tightly held. Directors also have options (55m each for Thomson and Nelson) at 0.35p issued back in September before a distressed seller wanted out and savaged the shares.
So, what are the attractions of FEI? Well, they happen to own a piece of land pretty near me which has planning permission for 72 apartments and that will be worth in the region of £2m quite easily that valuation is not listed on the balance sheet. Local gossip is that the land is starting to get developed after February once the existing tennant has cleared out which they are in the process of doing this week. Then there is the further investment in a technology company as stated by the company some months ago.
Dr Al-Dimashki is an interesting character with investments in many technology companies and he will no doubt have something to bring to the table on that front but he has quite an impressive background too:
'Dr. Oussama is currently the Managing Director of Middle East Development, LLC, Dubai, UAE. This organization is primarily involved in major real estate investment and with interests in electric power project development. It has grown rapidly during his governance from a modest asset base with 3 staff to a current staff of 45, assets exceeding CAD $150,000,000 and projects having a completion value of CAD $750,000,000.'
The principal advantage of FEI is simply that it can make larger gains in a rising market and could in fact lead to a pretty spectacular profit over a longer period. You could not hope to match this type of gain elsewhere imo but it will not be for everyone. I have taken a much longer view for FEI by investing some in my pension fund too and it may be worthwhile buying some and sitting and watching the action unfolding over the next year.
This does look very interesting and well worth a look imo.|
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