We shall see. In my judgement, good investing is finding under-priced stocks vs. the market.
When I reveiew the FASC financials, progress and potential vis-a-vis the rest of the market, I believe it is even more under-valued than before, current market cap (as judged by the investing community) being less than $5 million.
In other words, the investing community currently values the ENTIRE COMPANY, including its shares of other joint ventures, etc., at $5 million.
Let me give you a few for-instances to back up my opinion. There are a number of others, but for the sake of this conversation I will use the following.
2 stocks that we have talked about here are BIPH and KFX.
BIPH, on its last quarterly reporting, had zero revenues, and a net loss of $1.7 million.....with about 75 million shares outstanding. The pps is at about $2/share.
Therefore, the BIPH market cap (investing community again) is valuing that company at (75 million X $2) $150 million, or 30 X that of FASC.
KFX....in similar industry to FASC I believe, just put out its recent 10Q for the quarter ending 3/31/04, as did FASC.
They reported $799K of revenues, but a net loss of $3.2 million for the quarter......with about 65 million shares outstanding. Their pps is right at $11/share.
So the KFX market cap (note, what the investing community currently has it at) is (65 million X $11) $715 million, or about 143 times that of FASC.
Now.
You can say that the pps is always right at every point in time, the investing community is always right at every point in time, etc., etc.
I don't believe that for a minute. I have seen too many examples of extremes on both ends to know better. There was a company a few years back called LOCH, that didn't even have a marketable product, yet at one point, carried a $1 billion market cap.
So then. Based on the above, what makes good investing, in my judgement?
Again, finding those companies vis-a-vis the market, that investors have discounted inappropriately, for the time being.
And I believe that FASC falls into that category more than ever.
JMHO,
TR
AI
