fundamentals anyone following, page-13

Hi Kiril thanks for letting me know about HOM.The whole reason I have become interested in FFF is that I specialise in the companies under a MC of $20 million.The company has to be profitable and trading at a low PE ratio with growth.I have done a fair bit of work on companies in this area such as EBT,QTG,BAO.I have out of interest thrown these companies FFF,HOM,RHG,MOC into a spreadsheet to compare the numbers.The things that show up are that HOM PE ratio is 8.4 FFF is 3.1 so we are saying that FFF trades at less than half the price of HOM for the profit.Also FFF funds under management $19.9 billion has a higher operating cashflow per billion than MOC with $45 billion.FFF obviously carries debt the others not so.FFF I have been looking closely at the last half year as they purchased Calibre in Nov 11.I worked out the last half PBT was $1.7 million incl $1.1 restructure costs.If they can hit say $2.5 million half year or full year $5 million PBT they are trading on a PE of 2.4.Also in the last 6 months FFF have paid off $3 million in debt and net assets have increased by $3 million.This all points to FFF as being cheap however the opposite side to the equation is the debt level which is a negative but that is where we have director backing.From what I can see is that they are buying companies to get scale and I don't think the banks would have allowed this unless they had the director backing.

HOM is much more stable with less debt but FFF is a strategy that if they get their act together and start moving profits up could be re evaluated.I read about Candence Capital who bought heavily on Rams and did very well.FFF is a risk given their debt but also high reward.