Formation (LON:FRM) is a building company that has had a very hard time over the last 6 years. However it is due to pick up millions of pounds from a national housebuilder this time next year.The cash due is the proceeds of a land/part built property in London. The due cash is in the books at around £6M. The actual amount may be above this as far as I can see.
Today the stock trades at 1p with the asset value way above that amount. This means an investor can buy a pounds worth of what will soon be cash for around 38p.The same investor would also get a slice of a company that wants to grow.
Director buying last year must also be taken as a good sign.
Results for 2011 came out this time last year thus i am looking for results any day now...
