I'll give you my 2 cents. . . . . I reckon that $100 million is...

I'll give you my 2 cents. . . . .

I reckon that $100 million is a ballpark senisble valuation for Fonda at this point. I say this because:

- there seems a reasonable prospect that ACL earns $20 million year from Fonda once things are going smoothly. Some say $30 million. . . .but it's still well short of both numbers.

- After about three years ACL will have to pay tax on its Fonda earnings.

- Fonda won't last forever as a revenue stream.

- On this basis - about 7x PE on the "likely" NPAT seems OK to me.

If the above is correct, you should expect ACL to trade at a market cap of around $100m post spinout.

Current Market cap is around $160m. That means that Audeo is currently valued at around $60m in the ACL price.

On that basis - whether ACL is a good short-term trade around the date of the spinout depends largely on the pre-money valuation that you believe can be achieved on the audeo capital raising.

There is some talk that this can be done at around $100 million pre-money.

If that's true. . . .and if Audeo trades in line with that price in the after-market. . . .then there's about a 25% gain to be had between today and Audeo's first day of trade.

That's why I'm currently in this stock. And it's why I'd get out at about 70 cents if it traded there tomorrow.