The question you have to ask yourself is, think about your risk profile of this stock. Are you prepared to accept an 8-10% annual return for that risk with zero security?
Why would a bank lend FBR money? They have no assets to secure the loan. The risk on this company is massive. There is no income history. It's not going to happen.
FBR may be able to secure funding through debt from private equity but for certain it will be convertible bonds. Any lender is going to want a chunk of gains if they are going to be unsecured. They will want a big upside potential to balance the huge risk.
You guys put your money in hoping to double, treble or ten bag over the mid term - what makes you think anyone else will throw money for 10%p.a with the same risk?
FBR Price at posting:
5.4¢ Sentiment: Hold Disclosure: Not Held
