"...there's nothing more real than what the market is currently telling you. always and ever. so t's worth 1.5C per share."
I know what you are saying, and I have argued with Slick about this in the past.
But we are talking about what the company should be worth, and not what the current value on the stock market is. Because that value is nearly always wrong.
A great example is an obesity drug trial result from a company called metabolic pharmaceuticals. When the results came out the ann was upbeat, and the market loved it.
But although the results looked good, it was only good for the lowest dose of the drug. This result was the complete reverse to the previous results, where the highest dose was the only effective one - hence the results were terrible as they contradicted each other.
But the market decided that it was good, and that this company was worth heaps!
This was a high cap stock, and it opened at $2.50 up from $1.50. But then headed down during the day and finished at 98c. A few weeks later it was 6c.
I really should have got into shorting, because I was screaming at my PC and saying "no, this is a bad result and not good!".
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