fre - chinese shell play ?

Shell plays are all having a run of late

One I have been watching for a long time and quietly accumulating is FRE. good to see some old mates wise_one and turbo hold.

Market Cap is $2 million

During 2010 the company restructured its business and is now a:

' very clean listed shell which will have a royalty income stream sufficient to maintain listed status of the company through 2011'

They continue to:

'investigate and search for an appropriate business to back into the listed shell'

For 2011, they have enough cash and expected royalties and a $1 million loan facility to support the business. So on the cash front , they are all good.

The company has in excess of $21 million in tax losses on the books. Very attractive to any project they back into the shell, as it bring significant tax advantages and tax-free income for some time.

At $2 mill MC and enough cash to last all of 2011 , this is a great risk / reward punt IMO

They have a year to source a project and it won't take much news to set this running