Ava Global performance Plan, page-6

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Klue

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20/10/17

15:27

Post #: 28070172
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Originally posted by Investor50 ↑

have been topping up in both companies lately Webral, you raise many valid questions and I look forward to hearing others views.

One question you raise is interesting, ''Why did they jump ship in the first place for a risky startup and how would merging with FFT benefit them?'' My view after having run services businesses, is that CF was under-appreciated at G4S and had loyal staff that trusted him and happily followed him to AVA. Quite a common thing to see in tightly knit teams. In turn, CF negotiated a very good deal with Maxsec, where his group takes a third of the company's profit on top of their salaries. It certainly motivates the AVA team to negotiate profitable business which is a good thing. Although I would have thought 25% of the net profit for the AVA team would have been more appropriate rather than nearly one-third of the company's profit. So that confirms CF is a top negotiator.

Regarding the merger, I personally like the idea. The newer bigger company will have more appeal to customers, and future shareholders. Furthemore, the combined company will be more appealing to a bigger security company and with a bit of luck a trade sale may result in next 2-3 years, and we will all get a cheque for our shares at much higher valuations. That's my hope anyway.

Just an observation. At current share prices, MSP at 2.3c and FFT at 10.5c, the combined business has a total enterprise value of only $25M. That's very undervalued in my opinion. Whoever buys these shares now in either company is likely to do very well. I have been topping up on both companies lately, but have run out of capacity. Unless something unforeseen happens, I think we will look back on this time as the ''low point'' for both these struggling companies. IMHO

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Why buy FFT? MSP sp x 4 is a no brainer if you like FFT right?

MSP Price at posting: 2.3¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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