A lesson in valuations,, page-38

Been trading this company for a few years now. There is no doubt that this company as a trading vehicle can be very profitable. However as a business, this is nothing more than a lifestyle company ran by a bunch of people who have not been able to get anything off the ground successfully for DCC. Don’t take my word for it though, just DYOR and you will see what I mean.

As far as valuations go, someone the likes of warren buffet would never give these guys the time of day simply because there is no “moat” to speak of, and their advice or funds management does not offer any type of competitive advantage. The SP actually operates on a “who will pay more than the next guy” basis, not actual valuation metrics.

Unless the price of BTC goes down, I expect that the SP for DCC should hold at least .09 in the short term to allow the performance shares to be issued.

The one thing that these guys have been absolutely clueless about is their inability to raise funds solely for the purpose of buying more bitcoin. I forget the name of the company in the US, but it raised hundreds of millions to only buy bitcoin, leaving their holding somewhere above 40,000 bitcoin. That’s a move worth making if you are serious about adding value to a company whose main investment appeal is directly derived from the number of bitcoins they hold.

I would be very careful for anyone thinking of investing at these prices. It’s most certainly a punt at this stage given how high the MC is. Sure there could be further rises, the market is unpredictable like that. But I would be more comfortable shorting this stock anywhere above .12. Not right away though, it would only work best once the next BTC peak is in, which should be soonish if indeed the price to mine a btc at this stage is around 12k. As we all know, crypto is super volatile and the next BTC crash, which is inevitable, should see perhaps 9k-14k BTC price. Again, just a wild prediction.

Truth be told I would love this company if I saw regular purchases of more BTC or CR’s to make those purchases but so far there has been nothing of the sort. It would be interesting to see exactly how these guys are making money from their AUM division and btc trading mediums and how it ties in with investor returns.

The best type of strategy for trading BTC over time I think will be buying bitcoin on the dips, during those short period of consolidation on the lows, and selling put contracts during those dips.

DCC is fun to watch so I’ll always be in and out, even if I sell my self way short sometimes. It’s been good to me so far, as I’m sure it’s been to others, and it’s definitely been worth a few trips to Bali.

As far as the long term prospects go for DCC though, I wouldn’t be betting the farm on it...

Gltah and dyor