Ann: Suspension from Official Quotation, page-53

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09/04/20

16:56

Post #: 43978129
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Originally posted by Mav01: ↑

Ok, let me explain...

Your basic theory about working out a company’s value or MC may be considered the usual format i.e. 12x EBITDA, which is ok, but there are many variables that have not been considered!!

Without drilling down on specifics you are only factoring the initial order, only one product and haven’t considered an entire product range, the size of the potential market base and the most important factor of all, hype!! This last one will drive the MC to illogical levels. Take ZNO for example, when it was $2.45 and investors were calling $3.00!! (Totally unrealistic). Remember a MC is a representation of a company’s value at a point in time, doesn’t consider a trajectories direction and changes with time up or down.

Factor these variables into your equation apply a factor of say 75% because nothing is 100% and see what result you get. Then you will have your answer!! But remember the “hype” affect is easily worth a factor of 150%.

Work this out and see what you come up with, I’d be interested to see how you go!! But my guess is you’ll be left scratching your head!!

Good luck!!

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Mate.

I'm using a simple agrument to show that your valuation of 40c a share is ludicrous.

on your own words you have basically admitted that there ia just hype.

Eventually a lot of people will be left holding the bags of others. These others are usually trumpeting and ramping from the very beginning. Essentially transferring wealth from the foolosh to the downright nasty.

good luck.

WNB Price at posting: 1.1¢ Sentiment: Sell Disclosure: Not Held
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