Times like these provide a good platform to test o
Post# of 30027
Posted On: 03/20/2015 1:47:43 PM
Times like these provide a good platform to test or develop our mental and emotional maturity when it comes to investment. The mushrooming of bashers makes the test more worthy. It is a Sun Tzu’s Art of War tactic to create confusion in a battlefield; beating drums in the east but attack the west. Thus either the bashers are tactical like Sun Tzu or are mentally or emotionally immature when it comes to investment. In either case, the longs need to stay focused like a still tiger watching its prey tightly, not distracted by the flies flying in front of it.
With the current drama of confusion and share price turmoil, we only need to take cue from the right parties. Take the DioGenix owners as an example.
Assuming the peak sales of MSPrecise is only $30m (discounted to only 10% of estimated peak sales of $300m) and applying only 5x revenue valuation, the value of MSPrecise will be conservatively $150m.
DioGenix owners sold MSPrecise for mainly $8m worth of AMBS shares (100m shares at 8 cents). In comparison with the $150m they can potentially sell MSPrecise for, DioGenix owners likely assess that the price of their AMBS shares will be worth at least more than 20 times of 8 cents, or $1.60 in time to come. In fact, they must be convinced that AMBS share will be worth much more than $1.60. And their belief in AMBS is especially telling given that MSPrecise is near to revenue generating stage.
DioGenix owners, as well as many respected industry veterans who join AMBS, are likely to know a bit more about AMBS than us here. Definitely it is remotely possible that DioGenix owners and the AMBS team are deceived by Gerald and AMBS turns out to be a lemon. But investment is about calculated risk against potential reward.
DioGenix owners have sold their farm and bought AMBS. Be comforted.
With the current drama of confusion and share price turmoil, we only need to take cue from the right parties. Take the DioGenix owners as an example.
Assuming the peak sales of MSPrecise is only $30m (discounted to only 10% of estimated peak sales of $300m) and applying only 5x revenue valuation, the value of MSPrecise will be conservatively $150m.
DioGenix owners sold MSPrecise for mainly $8m worth of AMBS shares (100m shares at 8 cents). In comparison with the $150m they can potentially sell MSPrecise for, DioGenix owners likely assess that the price of their AMBS shares will be worth at least more than 20 times of 8 cents, or $1.60 in time to come. In fact, they must be convinced that AMBS share will be worth much more than $1.60. And their belief in AMBS is especially telling given that MSPrecise is near to revenue generating stage.
DioGenix owners, as well as many respected industry veterans who join AMBS, are likely to know a bit more about AMBS than us here. Definitely it is remotely possible that DioGenix owners and the AMBS team are deceived by Gerald and AMBS turns out to be a lemon. But investment is about calculated risk against potential reward.
DioGenix owners have sold their farm and bought AMBS. Be comforted.
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