Good to see some balanced postings mgm1, keeping things in...

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Jus

1,379 Posts.

04/01/16

14:52

Post #: 16723224
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Originally posted by mgm1a ↑

Posters getting caught up in the hype and headline numbers too much - this company is worth being on watchlist; no doubt about it. But no-one's looked at how the prospectus, and the preso are OTT about the opportunity - and i struggled to find how the financial reporting will look and it didn't answer two major points

Basic question - how will reporting look with equity accounting the various interests???
e.g. yeah the Lobster turnover may be $38m but that all in an investee company which BFC has an indirect interest and it won't show in the financials. All these turnover numbers are headline numbers only, and not related to what will get reported in their Income Stmt.

The other elephant i struggled to find, and its aligned to the equity accounting thing, is just where will the higher margins sit? and does BFC as opposed to the investee companies take some or all of the margin? Will BFC take a margin slice/ fee after the farmgate to FOB port? This wasn't disclosed anywhere until slide 69 of the preso, but only then sort-of; if the long term strategy is to spin off the verticals then it makes sense, and its still an assumption i will email the co, is that the investee coys get all the sale value and all the margin.

BFC people (beyond directors), branding strategy, their alliances and IP are great, but until we see some history much of their capital will remain somewhat out of full control by being inside investments they have under 50% shares. Further capital needs won't be met by operating cashflow inside those investments, so I'd expect more raising to fund the growth.

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Good to see some balanced postings mgm1, keeping things in perspective.

BFC Price at posting: 49.5¢ Sentiment: Hold Disclosure: Held
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Good to see some balanced postings mgm1, keeping things in...

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Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

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Good to see some balanced postings mgm1, keeping things in...

Top Stories

Patagonia looks to raise $2.15M for South American exploration and development

Orthocell shares jump on record revenues from sales of collagen bone repair devices globally

Scandium a priority metal for Sunrise as it plans feasibility update at Syerston

Mesoblast resubmits US FDA application for approval of Ryoncil in children with graft vs host disease; shares dip -4%

Spartan sniffs 126g/t gold ahead of resource upgrades at WA's Dalgaranga

Featured News

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