thoughts14 Jun 2018 21:42
FFWD pulled off a masterstroke with its 5x return on its Nuuvera investment in less than one year. As a result FFWD is in a strong cash position. I'm sure the board are looking at various options as to how to reinvest some of that cash.
Yes it was disappointing that Aphria had to be sold, but the board had no choice due to uk laws.
Anyone still interested in Aphria can still invest directly so it should not be too much of an issue.
The news about Leap Gaming couldn't have been better timed either with the gambling laws being relaxed in the US and the world cup and other major sporting events around the corner. Leap is afterall our largest holding and in a hugely growing industry so it always made sense to hold it for the medium term.
The problem as I see it and the reason why the price has dropped in recent days is that with a conventional fund or investment trust the NPV of all the underlying investments is generally roughly that of the fund's market cap.. However the NPV of all of FFWD's investments based on book value has always lagged behind FFWD's market cap by a wide margin, and it's only now that we are seeing the gap begin to close. The sp is now valuing factom, Yooya, Intensity, Leap gaming etc. still at book value when we know significant progress is being made with most of the companies held.
It will only take one good IPO of factom, Yooya, Leap etc for our NPV to shoot ahead of the current market cap. Only then I feel will we really see sparks fly with the sp of FFWD. But credit to the board. They may not do interviews on Proactive Investor or on BRR media like some companies do, but in their own quiet way they are delivering the goods, despite what many think.