strong buying, page-19

Agreed, where's the incoming revenue, plenty going out the door to the tune of about $7M PA!

FRE has maybe about $8.5M left of cash and a questionable business worth. Loses about $7M per year and has 181M shares on issue.

Do the math, whats the FRE SP really worth? And what is it likely to be worth in 12 months? At current SP of 23c it has a market cap of $40M, so, $8.5M in cash means that the rest of the business is worth $31.5M? I don't see it.

In order to justify this 22c SP value it would need it's $8.5M to stay in the bank, stop the cashburn and have revenues of about $30M PA @ 30% margin.........show me the money.

It is also good to do a peer comparison, look at ENG & MNF. ENG has 635M shares on issue @ 2.2c, market cap of $12.7M and it has revenue from about 85,000 paying customers, ENG is still in cash burn mode. MNF has 52M shares with a current SP of 14.5c, market cap of $8M, MNF has 60,000 paying customers, is virtually cashflow positive and is growing at 100% PA.

So, with little or no regular revenue an unknown presumably small customer base and losing $7M PA how can FRE have a market cap of $40M? Maybe it has discovered some phosphate? Get out while you still can I say. If it lasts another year watch for the placement at 5-10c, enter Tesco ala Channel 7/ENG. Hello ENG all over again.