Banter and General Comments, page-7272

Some thoughts on share price vs “value” of the company....

Imagine all the shareholders in a room.
They each have a price at which they would sell their shares, be it 1.32, 2.50, 5.00 or more..

That data set is some type of distribution with likely quite a spread and inherently has a mean value higher than the current price.

The current price is actually the LOWEST of those values, because it has to be due to the very nature of the mechanics of buying/selling. Whatever the lowest price someone is willing to sell for, is the current price.

Now, think about what you reckon the spread might be. Think about what you reckon the mean or average of that data set might be.
How much higher than 1.32...?

Think about this next time anyone mentions that someone can waltz in and “buy the company” for the current “market cap”.
It is nonsense.

Imagine (and this is entirely possible) that most holders would not sell their shares for less than say $3.
Who can buy the company for 550mil?
No-one.
They might make an offer, sure.
But it would simply not go through.

What affects those individual thresholds? Time, risk, perceived returns, etc.

Now, someone tell me to “panic” because we might be taken over at “these low prices”.
It doesn’t work like that.

Consider the $$ points above and you may just gain some more perspective on how the panic is being used against you to make you nervous and misjudge everything you discovered via DYOR.

What would “most” holders sell for..?
It is NOT the current price, and imo it would be significantly higher. Even talk of 20% or 50% premiums is nonsense imo.
That doesn’t mean a TO offer won’t come - it would actually be great, as the price would gap up (leaving asb stranded) and it wouldn’t be accepted anyway.
Just some perspective...
Beware the FUD.
Ask yourself if we’re going bust. Sell at the “bottom” if you like. Simple maths says that we have gone through MOST if not all of the possible price drop.

Imo
DYOR!