Starting this track to discuss about the recent run-up . I believe FFG is severely undervalued at this level. The run up to 40c was fast but it was commensurate with the launch of the BNPL service in Southeast Asia. The only reason sp retracted was probably there were hedge funds that were trying to aggressively short the stock . Lets start a movement to short-squeeze the hedge funds. Force them to cover their short, in no time FFG could be trading at $1 and beyond.
Fundamentally, lets examine whats going on with FFG:
1. Launched BNPL for Southeast Asia - Firstly holding a Singapore central bank license is valuable. Those who are understand how Singapore works will know that it has very very high bar with corporate governance and sophistication in financial services. FFG has already launched a service. Lets compared say IOUpay (ASX:IOU), which is still a concept and no firm date of rolling out service . IOU has just raised A$50m cash. FFG is so much better positioned than IOU. IOU operates in Malaysia, which is considerably a second-tier country compared to Singapore.
2. Gaming and Esports - If there is anything there is a sure bet in this world, it is digital entertainment ! The digital natives are so used to playing and communicating with their friends. FFG owns a controlling stake in iCandy (ASX:ICI). ICI has been going places , launching hit after hit and signing deals with global social media giant TikTok/ByteDance, not to forget they did a deal with Alibaba last year. In the Esports department, FFG has ESPL, which is now a global esports platform operating in 13 countries. Both ESPL and ICI could potentially be unicorn by themselves (>US$1billion valuation)
3. Listed Asset in Europe- FFG owns majority 51% stake in Sweden listed Abelco Investment Group AB. Abelco shares are liquid and from the Swedish forum I can tell they are well regarded in the Swedish tech space. Balance sheet of FFG is strong with listed asset like this. In addition this gives FFG the European and international exposure that not many tech stocks on ASX has readily access too .
4. Other exciting business - finally , lets not forget there are other exciting business within FFG's stable including my personal favourite Fatberry.com, a fast growing online insurance platform. It can be real online insurance powerhouse in Asia, to be acquired by Lemonade (NASDAQ:LMND, marketcap US$8bil) There is also iSecrets that is in e-commerce in Europe. Quickbit - a Sweden listed crypto payment and exchange company.
In general - I believe FFG is heading to the $1 direction, not because of this recent market run-up, but because BNPL launch is the impetus and the rest of the underlying business support such a valuation. Ignore the noise generated by daytrader, value investors would be smart to know when to get in. In addition look at the screen, people are buying up , some serious buying is already happening at this level.
Stay woke, DYOR and GLTA.
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