Interesting comments. For those that wish to review the financials that it references please go to www.fatfish.co – investors tab – financials. The financials can also be found on www.asx.com
FFG recorded a net cash inflow of A$43,000.00 for the quarter. This is the first time ever.
FFG has had a large one-off gain of A$816,000 for the current quarter, and A$561,000 for the 12 months year to date. (In the financials)
Last 12 months FFG Revenue is actually A$698,803.00 /yr
Do not forget that during the quarter that FFG had a Credit Raise was completed providing a A$1.5 million BEFORE COSTS!Do not forget that FFG also entered into a definitive legally binding agreement with US-based Arena Investors, LP for the issuance of up to $10 million convertible notes. For those that do not know – a convertible note is a debt instrument often used by seed investors looking to fund an early-stage startup. Instead of receiving principal plus interest, the investor, aka Arena Investors, receives equity in the company/investment.
Other things to consider
The price-to-book (PB) ratio indicates that FFG is overvalued based on its PB Ratio (5.6x) compared to the AU Capital Markets industry average (1.4x)
Return on capital to date for last year is NEGATIVE 2.9%
Return on Equity is 1% - not a healthy return.
Last year the Return on Capital Employed is NEGATIVE 2.9%
FFG Debt / Equity Ratio is 23.30% where the ASX market average is 3.4%
FFG current Quick Ratio is 0.22 where the ASX average is 1.7 – not great.
For those that do not know, the quick ratio is an indicator of a company's short-term liquidity position and measures a company's ability to meet its short-term obligations with its most liquid assets.
I disagree that FFG has gone from a loss to a profit. You are basing your facts on a singular quarterly report that clearly highlights a large one-off gain. FFG has had a credit raise as mentioned above and any future investments will be impacted by the Arena Investors Convertible Notes.
You say that it is hard to determine its current value? The financial reports for the past 12 months provide all of the information.
I respect your statement of “get in now or miss the boat” but feel that this is a ‘soft approach’ to generate FOMO. FFG current share price has been driven by those reading the ‘Headlines’ and not understanding FFG business strategy. Making assumptions that FFG is going to make ‘buckets’ from Minerium and the price of Bitcoin – which it is not, and FOMO from statements by others that FFG is a BNPL stock. It is not.
FFG is as much a BNPL stock as Berkshire Hathaway being a technology company because it has a large shareholding in Apple.
I would like to understand how you have come to a valuation of above 60c in the next 6-12 months?
FFG outstanding shares = 938,516,887
FFG current Market Cap is A$117 million based on an average share price of A$0.125
A rise from A$0.125 to A$0.60 equates to 380%
This would equate to a Market Cap of A$563,110,132.20
Based on FFG current Assets, Investments and low revenue, this is a big stretch to state that FFG is worth this.
Putting SmartFunding into perspective. There are around 400,000 registered businesses in Singapore and 370,725 active registered businesses in Malaysia. Not a large pool of opportunities. Any profits will be put back into the business to grow and maintain it. I feel that at some time, they will have to expand their horizons.
As mentioned in past posts, there are new players coming into the space of SmartFunding space. Yesterday I spent time on calls better understanding other BNPL entities and their go-to-market strategies for 2021. There are big fish expanding in this region across APAC
Klarna is one with a valuation of $31 Billion and has just raised $1 Billion for growth in current and new global markets. Investors include the Commonwealth Bank - and GIC (Singapore Wealth Fund).
I feel that based on what is known that a healthy position for FFG share price is A$0.09 to A$0.10
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