And I have to strongly agree with you, Isladar.People often...

And I have to strongly agree with you, Isladar.

People often confuse the price with the value of a share. Price is what you pay, value is what you get.

When you are buying a share, you are buying a % of a business. Therefore, the value of the share is the % of all the money you expect that business to derive in the future. The price is what you are willing to pay today for that value. By the very definition, when you are buying a share, you are saying that you think the price of that share is lower than its value. Otherwise, why would you pay $1 for something that is worth $1 or less?

Now with the efficient market hypothesis, the academics will argue that the price is always equals to the value, because any excess return would be competed away in the open market... but we all know that the market is far far far away from being efficient.

The casing point is back in October, RXM share price dropped from 20c to 14c and rebounded back to 20c within a span of a week, without any new announcement or information provided to the market. Did RXM's expected future cash flow (i.e. the value) drop 30% and rebound up 40% in the span of that week? Of course not. What changed was the marginal buyers' and sellers' sentiment towards what they are willing to pay for that unchanged future cashflow (i.e. the price).