Next Four Weeks, page-38

Hi @Prime1,

Sorry – I was away and could not respond earlier. I believe that you have already received great responses from TJ and Jack and no further response is needed, but I’ll just add a few words, nonetheless, since you addressed your point to me.

Your points in red and my response below.

Isn't there something of a giant leap of logic (elephantine, maybe?) in suggesting that, because an institution (or institutions) "might not always" have considered fundamentals, that institutional investment is, in some way, a bad thing for a company? And, specifically in this case, bad for SYR? - @Prime1

I think the article that SYR shareholder moloch kindly shared on the TON board with me, and my earlier response was as clear as possible. It clearly mentions what can happen if all instos leave at the same time. I’m surprised that I have to actually explain this concept again. I’m not sure how else to explain that when multiple elephants are in a pool and all leave the pool suddenly, then the real level of the water would become clear. That was one of the central points of that article (an article which your own shareholder decided to share with us TONners). SYR does have multiple elephants and hence the propped up share value. Obviously, if they all leave and simultaneously at that, it is bad for SYR

Yet it would not be a bad thing for TON? - @Prime1
Of course it would not be bad because TON is waiting for elephants to jump in. Remind me to say how bad instos are if TON’s market cap is ever 6 times that of SYR or a competing graphite company despite the competing graphite company having achieved more. For TON to do that, TON’s share price needs to get to approx 9 AUD with market cap of 3.6 billion (6 times SYR), and then the elephants being bad analogy could possibly apply to TON. Till we achieve peak valuation, all the elephants in the world are welcome.

Surely it is far more likely (not guaranteed, I accept, but FAR more likely) that an institution will undertake a serious evaluation of a company before buying in, than is the case for the average Mum-and-Dad small investor? - @Prime1

They probably did long ago when SYR was the only game in town. That is how SYR managed to reach such a high market cap. I’ve always compared TON only to the current market cap of SYR.
I also highlighted the example of tech companies from the article. The article mentions some tech names but did not mention the latest giants Google and Apple. Obviously, instos moved on from some earlier names onto the hotter names of Google and Apple. Having insto support is not static, but instos are constantly keeping an eye on all players.

In the big majority of cases, the levels of accountability, and review processes, in the instos will ensure a higher level of scrutiny, and that, in turn, allows small investors to have a greater level of confidence.
Isn't that the implication of your own comment:
" I continue to hope that some elephant sized instos will jump into the TON pool."? - @Prime1

Instos would definitely have a great review process but that was not the implication of my comment.

I would like some elephant sized instos to jump into our pool so that our share price starts reflecting the price it deserves. Till it does not, I shall continue to highlight the deep value that TON offers and hope that some elephants join in the party. I have already mentioned all possible ways in which TON has done all that SYR has done and much more. There is absolutely zero reason for our market cap to be even a cent less.

Is there a nagging concern, lurking at the back of the mind, that the shortage of elephants in the pool is due to just this evaluation having been done already? - @Prime1

I don’t know Prime but is there a nagging concern, lurking at the back of your mind, that the collapse of SYR’s price is due to the fact that SYR’s elephants have done their evaluation already and could even be planning an exodus?

Maybe, as Ben Kramer Miller says, SYR was really a great shorting opportunity all along hey? BKM sure was right about what he said. Probably, the instos could have propped up SYR only to short it later and might still be thinking even now of what a great shorting opportunity SYR is, when it so overvalued compared to peers

Since I started commenting half year back, the share price was around 4.72 and has now lost 50% since then. It did reach that level some months back but promptly fell back on the very same day. It has been more than a year since the share price crossed the level at which I started commenting. Share price of SYR has never even once closed above the level of 4.72 when I started commenting.

So perhaps you are right Prime and perhaps they have done their evaluation, and perhaps the instos might already agree with me.

Cheers