"Hint: You don't derive value from price. Price is what you pay, value is what you get. This means you cannot derive a rational price from anything that has price as an input. Eg. P/e and market caps are functions of price, not value."
WTF does that mean?
I'm not about to go into chapter and verse on to how to value a company because you can do it a number of ways. zwu is using but one method, even though he/she may be using simplified data.
I for one agree, it is overvalued. I'm not sure what it's fair value is but it is definitely not what it is now. We know GTP are going to post a loss this year and that it is restructuring, to get its business right for the new MIS reality. They do however have some significant legacy items that will continue to pose a challenge for them in the future.
I shorted this one all the way down to $0.55 this year, and i thought that was the least riskiest thing i did all year. It made up for all my losses on my longs :).
Anyway, if you think everyone else can't value then why don't you just shut up and exploit their foolishness. the market is a zero sum game after all.
GTP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Not Held
