perplexing, page-6

re: not perplexing - valuations.. after Marchello brought this up on the JUM thread I've had a further look. It initially looks very attractive but a few areas that worry me.

1) Depreciation is not taken into account with all your forcasts, last year was 1.1 mill and this year will be $1mill plus any depreciation on assets bought. That's just under $100k a month that needs to be taken into account in their monthly reports.

2) Big write offs...$1.7mill? last year...are there any more.

3) Has spend most of its 2mill raised, I can see some was to pay down long term debt but still has 2.7mill short term debt, equiv to a year before.

4) How much are the upgrades going to cost? I haven't read through all reports yet but can imagine would chew most of its current cash up???

5) It issues 200mill shares at 1c in December (doubling shares on issue) with only 10% being taken up by shareholders and the remaining 90% by underwriters, this does not sound good for faith in the management and also leaves a huge overhang on their SP. There would also be big incentive for the substantial holders not to let this go over 3c till the options expire as they will get diluted massively. If they are confident and own a swag of options themselves, do have they the confidence to exersize them??? I have not looked at Top 20 yet of both FP and Options but I will when I get time to try suss out picture more.

Looks interesting and at a first look it seems to warrant further investigation...but also a lot of areas to be concerned with...and hence their cheap 2.4c SP atm...but cheap is relative :) If all was as the monthly reports sound then they are a steal but I know there are things not being taking into account.