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Originally posted by Bullsnuts:
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That bottom line is what counts, for me it needs to be positive cash flow & self funding. It also needs to have proprietary tech that can be leveraged on further innovation, i.e they might be able to "identify anger, drug & alcohol affected, untruths, anxiety etc. If they can do that & lead that tech then this company would be worth way more than $50 a share. Two things determine the share price, fundamentals which justify an investment & sentiment which is psychology creating speculation of greed or fear. Some people invest some speculate, when the speculative momentum slows or even turns negative it can get ugly. I absolutely do not think this application alone is worth an investment at this price. That is potential upside to downside of this application being sufficiently monetised. However the tech behind it may be worth many multiples, right now that is pretty long odds & I would rather pay more for the odds to shorten than get swept up in what appears to me as over exuberance. if what I’ve posted gets you angry then you are probably buying from emotion & will act emotionally. If you’re investing in this business it pays to recognise why & who else is buying it. Also speculators usually aren’t very patient or have as strong a conviction as they think & no matter how good this business is there will be testing times when fear gets the herd running for the exits & that might be the best time to buy. I’ve made money (enough to buy a Porsche) on investing in shares like altium Appen wisetech by waiting & I bought those shares from speculators & if this company can leverage its tech I will buy in from some emotional speculator. Again I wish you & the business well.
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There is nothing wrong with waiting for a business to be positive cash flow & self funding but someone has to own it beforehand. There are plenty of risks but some of us are prepared for the extra risk and hope that it leads to larger rewards.
