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Posted On: 01/11/2021 1:13:01 AM
Post# of 36541
So here is my take on the valuation of NGIO we leaned about on Friday, and it's effect it should have on GNBT's pps.
Let me start with an analogy. Let's say one is currently looking for a house to buy. A real estate agent shows some houses that are currently on the market. One in particular sticks out, even though it needs some new paint, and maybe a makeover of the bathrooms, the most important is that the floor plan is according to your liking, and it already has a pool in the backyard etc.
You finally visit the basement and you notice a stack of gold bars somewhere hidden in a corner that are left unnoticed by everybody else.
Does that make the entire house intrinsically more valuable (especially for you, who already knows about the hidden gold)? Or would the value of the house only increase if I'd raise my hand and tell everyone? To the contrary, If I am the seller, of course, I will make sure that everyone knows about those gold bars, such that I receive a better price for the house.
The value of GNBT should be the sum of all parts, right? And we all know that the current market cap does not, by any means, reflect the fair value of the company. If now an independent analyst comed up with a valuation of NGIO, why would it be unreasonable to expect that at least some of that value gets priced into the share price of GNBT even prior to NGIO's IPO?
So far not many people seem to know the value of GNBT's subsidiaries, now they let us in at least on the expert's (very conservative I may add) valuation of at least one of its parts, why should that not cause GNBT's pps to increase even ahead of the IPO? I don't get it.
Let me start with an analogy. Let's say one is currently looking for a house to buy. A real estate agent shows some houses that are currently on the market. One in particular sticks out, even though it needs some new paint, and maybe a makeover of the bathrooms, the most important is that the floor plan is according to your liking, and it already has a pool in the backyard etc.
You finally visit the basement and you notice a stack of gold bars somewhere hidden in a corner that are left unnoticed by everybody else.
Does that make the entire house intrinsically more valuable (especially for you, who already knows about the hidden gold)? Or would the value of the house only increase if I'd raise my hand and tell everyone? To the contrary, If I am the seller, of course, I will make sure that everyone knows about those gold bars, such that I receive a better price for the house.
The value of GNBT should be the sum of all parts, right? And we all know that the current market cap does not, by any means, reflect the fair value of the company. If now an independent analyst comed up with a valuation of NGIO, why would it be unreasonable to expect that at least some of that value gets priced into the share price of GNBT even prior to NGIO's IPO?
So far not many people seem to know the value of GNBT's subsidiaries, now they let us in at least on the expert's (very conservative I may add) valuation of at least one of its parts, why should that not cause GNBT's pps to increase even ahead of the IPO? I don't get it.
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