RE:Some people may not like this because it reflects The current book value presumes cash on hand I suspect....which is an obviously fluid variable....so right now BV = 0.44c....but in another Q it will be less. That's why BV arguments for non-profitable businesses is a poor metric.
mcamm10 wrote: their lack of knowledge so hopefully they learn something.
The BV or book value of a company is a calculation to guide an investor. It is a hypothetical scenario that if a company were to immediately cease to exist what is it worth when elimating all future revenue streams discounted to a present value. You can look up the definition and BV formula.
When we apply this formula to LABS we get a BV per share of $.44 which reflect the value of the company today per share without any future earnings, a liquidation price or a snapshot price.
So LABS is trading at nearly 2X's below Book Value which means it presents an "arbitrage" opportunity because it is heavily "over sold".
It also reflects sa lack of knowledge by the newer generation of investors aged 20 to 40 because technology since the early 1980's has enabled a much larger portion of the population to play the stock market anywhere at anytime but what did not accompany the technial "enabler" was the required education, formal or self taught, to understand how companies are valued and how the stock market works.
So if you invest $5 million today in LABS at it's existing price, any news "waking up" investors can easily double your money.
I could have been rude and said, "sheep for the shearing".