RE:RE:RE:RE:Aveeno FormulationIf investors thought there was a very high probability of it going to zero, it wouldn't be trading above book value. Again, there is most definately a premium already priced in for potential new revenue streams. The company isn't trading above book value just for their unprofitable existing (and rapidly declining) revenue streams.
Ciao wrote: upside80 wrote: Very nice, thanks for that Ciao, would be nice to see a return to profits soon, I think the SP is really suffering as a result of declining sales, this ship needs to be turned around, hoping 2019 is the year.
The current share price is a classic example of prospect theory (weighing probabilities, loss aversion) where investors are concerned that the burn rate here will not be offset by profits from increasing revenues.They think the stock has a very high probability of going to zero. Thus there is no premium in the share price that CZO may succeed in some of their blue sky potential products, some of which are in pre-commercial and others in the commercial stage.
It's not rational to be selling the stock at this level. If you were new to this stock would you be buying or selling short (it's your reference point which is key here). CZO has a market cap of $30M and the possibility of capturing a portion of $Billions in its addressable markets. Look at the reward to risk.