Posted On: 02/11/2016 11:51:25 PM
Post# of 22940
I posted last night but apparently it didnt post.
While the error was serious and consequential in valuing the stock TODAY - it becomes somewhat trivial in terms of the future valuation relative to the price today.
For example - if you believe the company is legit and that the re enues laid out in tbe biz plan are realistic - then a 4 year valuation on 2.1BB OS at $100MM could easily be $0.50-$1.00 based on the multiple applied. However - lets say ones target price based on the multiple applied was $0.25. If you take 20% off of that you still have $0.20. Now - divide $0.20 by 0.004 or 0.0028...either way - it is a monser return. Where else can you employ your capital in this realm with that type of REAL potential that isnt pie in tbe sky... ? Point being - bile the error was significant, it was disclosed immediately upon finding it and the CEO owned it. What else do you want? If you think he lied - you sbould have been selling on the opening. If you took it at face value and realized that in terms of future potential -it becomes somewhat insignificant - then you took this morning as a buying opp.
I got shares at 28, 26, 25, and 23 on the wY down and 26 and 28 on the way back up. The error changes nothing with the future potential - only the relative valuaton. If/when it is disclosed they have an acquisition with $10-20MM in revenes - this will be a blip in the road and one where many will be thinking wth the panicked for.
Based on the comments - it does show there are a lot more short term traders here than let on prior and/or tbose do not know the difference between a l9ng term investor and a trader. Neither is right or wrong. However, one needs to understand which they are to be disciplined in their approach.
While the error was serious and consequential in valuing the stock TODAY - it becomes somewhat trivial in terms of the future valuation relative to the price today.
For example - if you believe the company is legit and that the re enues laid out in tbe biz plan are realistic - then a 4 year valuation on 2.1BB OS at $100MM could easily be $0.50-$1.00 based on the multiple applied. However - lets say ones target price based on the multiple applied was $0.25. If you take 20% off of that you still have $0.20. Now - divide $0.20 by 0.004 or 0.0028...either way - it is a monser return. Where else can you employ your capital in this realm with that type of REAL potential that isnt pie in tbe sky... ? Point being - bile the error was significant, it was disclosed immediately upon finding it and the CEO owned it. What else do you want? If you think he lied - you sbould have been selling on the opening. If you took it at face value and realized that in terms of future potential -it becomes somewhat insignificant - then you took this morning as a buying opp.
I got shares at 28, 26, 25, and 23 on the wY down and 26 and 28 on the way back up. The error changes nothing with the future potential - only the relative valuaton. If/when it is disclosed they have an acquisition with $10-20MM in revenes - this will be a blip in the road and one where many will be thinking wth the panicked for.
Based on the comments - it does show there are a lot more short term traders here than let on prior and/or tbose do not know the difference between a l9ng term investor and a trader. Neither is right or wrong. However, one needs to understand which they are to be disciplined in their approach.
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