A holding company is often used in company structuring to minimise risk and liability during the setting up process or otherwise.. It doesn’t usually produce goods or services or have a role in the day-to-day operations of the business. Rather, it is created to buy and own the shares in other companies known as the subsidiary companies and assist in the building and listing process in this case..There are taxation benefits in holding subsidiary companies also.
In the Fatfish Group case they hold the subsidiaries for seed to growth or exit strategies and they exercise training and setting up costs for new subsidiaries to build the concept or original idea into a better entity on a joint co-entrepreneur basis and then if no exit they prepare an IPO then when ready to go the subsidiary is lodged on an appropriate or transparent share market listing. You cam’t then go pedantic if the the listing has not occurred during the build up and cost setting period by the holding company, Fatfish Group. You have to take into consideration when evaluating the subsidiary process before listing you are looking at the embryonic stage of the company pre IPO listing so you then have to evaluate the concept in the setting up stage which might show great promise but not the financial movements, revenues assets and liabilities and revenues to date with expenses as well.
So you are limited in your investigations but if you can apply lateral thinking you can often make some projections and ideas to help build up the promise to come. You can also present any successful models of other subsidiaries that are success stories that show a path that can be followed. The value to FFG is the increase in value of shares we hold in the new approach companies after set up in the increasing value of our share assets which can always be disposed of if required or allowed to build further. They are spec companies at this stage so we have to make some allowances.
You can’t just kill it because if is a work in progress is not quite off the ground yet. but has high potentiality and probability standards as presents are there before it if the homework has been executed.
I’ll ignore the generalisations you have made about my posts as have mostly presented a case for then which can be evaluated on their merits, good or bad, what ever the case may be. Unlike yourself I mostly finish it by placing a imo or door if required.
If you think setting up a profile and financials perfectly is going to make company ready
for advancement, think again. Warren Buffett and his analysts spend an enormous amount of time selecting companies that are undervalued or ignored in spite their impeccable presentations where the market completely ignores them. He is prepared to hold them for years until the they are noticed because of financial movements too good at last to ignore and go into uptrend. So there we are.
In FFG case many will agree you continually said the SP would not present forward because and profitability of benefits would not be shown in FFG’s case (that seemed to be your case) and it would not advance past the 3-4c stage \and you were happy with that because you were a buyer at those levels.
Well, it did did go forward to a high amount x 10+ and ended up being a P&D because of potential ;large success inn the future indicated and unfortunately for some FOMO set in to make trading difficult for holders. This movement was assisted by many who saw success coming this way and again people like yourself and those holding for a long time were rewarded if they sold to get back in the green again and increase their holdings if they took the opportunity presented.
You yourself were a beneficiary of these increases Raggertooth but you are not not a cause for its success and you show no gratitude for others who have shown the benefits of the company now in its journey as others pointed out to all were and are.
You enjoyed the wealth but ignore this who made it happen. Your dialogue still shows your anguish of wanting to get the SP cheaper still. So be it ,it is just an opinion but we shouldn’t suffer because of it through your compulsive obsession about itbecause you want it done your way.
From my own perspective I always support posts where I can by positives and point out difficulties where I can and state it is an opinion or do your research when required.
If anyone today wants to have a great read what is happening today in share speculation and the mention of influences on share movements should have a look. Hotcopper is mentioned.
Clocked at 300pc an hour: Speeding on the ASX
“The Saturday Age. Business Sara Danckert Mar 13
Good luck all.
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FFG Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
(20min delay)