FOS CAPITAL LTD IPO Analysis, page-22

Hi whitepages127

I am going to quote you "its just an electrical/lighting business"
I am going to have to only mark you 2/10 as a grading (smiley face)
If you are going to make a case against something you need to justify with more than this. I would have added its competing in a declining market As per the directors own estimates there will be a decline 15% in in the T.A.M over the next 5 years

Directors noted existing players will struggle to maintain market share. You could have argued that the slow demised in FOS and greater demise of the JSB acquisition are clearly the losers of market share
Perhaps the mention of Beacon Lighting and Bunnings taking a greater share of any slight pickup in the retail market, the directors anticipate, will perhaps be the greater winners of any increase in retail demand
Some will say greater analysis needs to be added but as you mention " an electrical contractor with an ABN making 150k a year can list now and become an ASX company" . Its this point the 150 K market cap is critical .Expending more dollars on research than the company is worth is not logical. Its also this point that makes me think I need to re-evaluated my marking ,as the one line analysis you gave may have been more than financially logical to invest

I quote again your wisdom "Give it 6 months and it'll be below 15 cents and another forgotten ASX stock" That statistic is close to ASX reality for IPOs .

Quoting Josh Trader "The mid to long term odds are in favour." seems like wishful thinking .






Take a deep breath and think about it.

The mid to long term odds are in favour.