RE: FCC & Federated wireless1 Jan 2020 12:13
I have just bought a small holding in these. Influenced by director buy initially and researching more before I decide whether to invest more
end sep article from IC below
Earlier this month, the value of Allied’s stake in mobile communications group Federated Wireless jumped to $72m – equal to 24p a share – following a $51m fundraising and recent commercial progress. According to analysts at Jefferies, stakes in Spin Memory and BridgeSat are worth 19p and 8p a share, respectively, while the HawkEye deal should still leave 21p of cash on the table. At 57p, Allied Minds' shares would therefore appear to trade at a discount to the sum of their parts, and sharply down on the two-year average price-to-book value multiple of 3.7. While issues within the broader investment portfolio are unlikely to herald a return to those valuation levels, investors may now ask whether the current market price fully captures the potential proceeds from a wind-up of the group’s remaining assets. Speculative buy