With all due respect your approach is too simplistic. your valuing a company on P/B ratio only and to anybody having knowledge if financial markets is too simplistic. No startup company would exist and prosper if the decision to invest was as simple as that. I strongly believe that macroeconomics events must not have an impact on spec stocks but the market thinks otherwise. Every single stock I owned lost some percentage on Friday and it cannot be for the reason that Friday morning the market got a revelation that P/B ratio was too high. For examole FBR won the WA innovator award on wednesday and dropped 20% on Friday. Now should as an investor one believe on the credentials of market experts or very shoet term focused market traders?
I hope you understand what I mean from VWAP and fair value estimate. a VWAP of 9.5 and closing price of 8.7 means that market on average valued it on 9.5 cents throughout the day and 8.7 towards the end of the day. This shift is for no apparent news or change in fundamentals.
It's all your call how to manage your investment. if I were not so much convinced of a business, I certainly would not care to start a thread and preach that business is overvalued. I would only do that if I had feeling's that I need to rethink my assessment. that's how human psychology works. again if you are not convinced feel free to move on. There are many safe play stocks with great P/B ratios that you like a lot. Best of luck
