I posted last night but apparently it didnt post.
While
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.
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