why i have gone long this week

Hello all,

Having owned FML in the past, but not at the time of the deal being announced has resulted in me keeping a casual eye on the discussions within this thread and the price action observable on their chart.

I believe that the SP is priced where it is because of the uncertainty of what will occur should the NO vote win, will there be a CR, or another offer, or will FML plod along as before, or will there be a shake up with the BOD and management. It is this uncertainty that the market does not like and which has been priced into the SP.

I also believe that the YES vote will win, this is just my gut feeling and I might be incorrect. I take this view for a few reasons, firstly it appears that the shareholders have been put between a rock and a hard place as the plan B has not been outlined to any great extent which is what also creates the uncertainty, hence a proposal that is not ideal is often viewed as better than the unknown. Secondly, it appears a lot of followers have faith that the capital injection will unleash the potential. Thirdly, I believe a lot of casual investors just follow what BOD recommend which is obviously the YES vote.

If the YES vote does succeed I believe that in the days/weeks to follow we will see an increase in the SP. A YES vote will remove a great deal of the uncertainty about the future, FML will make announcements to the market of their plans and the new direction. In addition, each share will have 2.5c cash in the bank so at today's price can buy the rest of the assets for 0.9c. This is obviously to cheap and the market will reprice the stock. Of course there still going to be the uncertainty of how a Chinese company with control will treat the minority shareholders.

I am not saying that this deals is good or bad for the longer term, I am not saying that long term holders should be thrilled or devastated with the BOD. I am just saying it is what it is and this how I plan to profit from the situation between now and xmas. I might be acting in a brave, stupid or smart manner, time will tell......

Good luck to all...

Regards