In my view, the company has done a very good job with the assets...

In my view, the company has done a very good job with the assets they have acquired. I have shared in my previous posts the very good performance metrics of their key web portals which, along with the metrics provided by FDV, I believe supports that view.

Despite these efforts however, those newer assets are still much earlier in their life cycle, and so the outlook for FDV in the short term I believe is highly dependent upon the performance of Zameen which is by far FDV's most valuable asset by a long shot.


Setting aside the broad sell off in tech and growth stocks, the key headwinds facing FDV at the moment is the performance of the Pakistan economy... which is just terrible. (Just read some of the news on the economic and political situation to get some insights into how difficult things are there right now).

It looks like inflation is getting out of control and the government there is depleting their foreign reserves at an alarmingly fast rate, and their currency has also weakened considerably.

There is also political instability in Pakistan with the recent coup and removal of Imran Khan as PM.

It is by no means a Sri Lanka yet, which is undeniably a basket case, but investors holding any assets in 'frontier' markets, seeing what has happened there in Sri Lanka will no doubt be very shaken to be reminded of these kind of risks.

Despite this, focusing on your question of whether FDV with $29m of cash left - does it have enough funding or will it come back to the market for another CR?

Assuming Pakistan can find a path out of its current mess (and it has been here and got out of it before), and does not go down the path of Sri Lanka, I still think the answer is 'no', FDV won't need to raise capital, and if the share price remains where it is now, they won't choose to.

I suspect Shaun has greater ambitions and if the price was right he would raise capital if there was the right opportunities, but the timing has got to be right.

FDV only burned $2.4m in their last quarter, and I think if they needed to, they could find ways to cut costs by focusing on their core assets until more appropriate conditions arise to consider a capital raise - if they wanted one at all.

I still think this stock cheap, but not without risks, but for the long term investor, the potential returns do outweigh the risks in my estimation, but that's just my opinion only.