Forum Topics FDV FDV Strategic Review

Pinned straw:

Added 2 months ago

FDV just announce a Strategic Review.

https://www.marketindex.com.au/asx/fdv/announcements/3q-2024-trading-update-strategic-review-3A654509

Those words are usually a starters gun to head for the exits but probably not in this case...

Although share price going up 32% in a week suggests this info may have been well anticipated by someone.

It's a review of the business to "unlock and maximise shareholder value" most likely by spinning off the LATAM division.

This makes good sense to me. ASX is a strange market for that business and it's been there best performing segment for a while now.

They have alluded to this in the past and structured themselves for this potential a while ago.

The trick will be to sell / float it into the US when the market conditions allow them to maximise value. I expect they feel that moment is here, or approaching.

Disc: Held

Hackofalltrades
Added a month ago

This is such an interesting company to me. The thesis is clear and obvious, the question is whether the company can pull it off.

I also note that the price has dropped, but it seems that fundamentals haven't improved much either.

Has anyone been following this one closely?

13
Bushmanpat
Added 2 months ago

The words "Strategic Review" were the first ones I saw and it didn't feel good. After watching the last SM meeting, I got the impression that he was getting frustrated that Mr. Market wasn't recognising the value he believes lies FDV and now it's in writing. Maybe he was hoping the Dubizzle float would have been announced by now to release a bit of cash.

But the run up in share price prior to quarterly announcements and the subsequent crash is becoming a bit predictable. Maybe I should trade that instead?!?

18
Strawman
Added 2 months ago

I agree with your take @Slomo

And you are so right re the term "strategic review" lol

15