I understand the logic behind your craziness but think it is a bit flawed. I don’t doubt that there is potential here but I feel to achieve what all the companies mentioned achieved you would virtually need to privatise the company again.
Why? Because most, if not all of these companies were originally private companies in their initial stages and were propped up by venture capital firms who were happy to keep putting money into funding rounds because they were going to make their money on the actual IPO itself or a takeover by another company. They didn’t have to worry about keeping the market happy while they were growing. SnapChat (Snap Inc) has found it hard to grow their value since listing due to the small problem that stock market investors expect profit.
If the big players like the look of this today then they can just acquire a good stake directly from company in a placement at dirt cheap prices – they don’t need to offer billions.
Once they have their foot in the door and they decide they really want to take it over then they just hold down the share price for a year or two and make an offer of 50c and by then everyone else will be glad to get out with the shirts on their backs and hand their shares over.
The only way to avoid this would be for the company to make money and then the market will give it value –would I put my faith in current management to do this – probably not. Unlike the wunderkind you have mentioned – I don’t see a big payout for a loss making company while it is a listed company. imo
MSM Price at posting:
6.8¢ Sentiment: None Disclosure: Not Held
