Intrinsic valueDear Joseisok,
Intrinsic value is achieved in various ways by serious investors. I doubt very much after reading all of your posts on this board that you are capable of applying yourself to do such a task. Regardless of your level of intelligence, i will make it simple and quick for you, as i feel already that it will be a total waste of my time and i don't expect your rebutal to be very constructive.
So first of all, I attribute a high value to working capital and future cash flow in order to establish an intrinsic value to a company. If you refer back to a November 12 post by Rogersbull his working capital calculations were very similar to mine. So i see working capital and cash flow as the life blood of a company...
Secondly, I look at the net margin profile of a company to see if that working capital is sustainable over the long term and back in the late fall of 2019,I saw GSI improving substentially. GSI is now dominant from relatively high net margins profile of the last Y/E. GSI's net margin hit it's highest relative to it's last 5 years and compared to it's lowest of -16.86% in 2018. It's net margin increased to 8.61 from -2.15 in 2019.
Overall assets turnover and net margins trends suggest that GSI's ROA @ 17.03% has maintain and moving upward from its 5 year average ROA of -8.73%.
So this is two of the many reasons, I hold for the long term and don't really care about the flavor of the day in the market place. I honestly believe Y/E 2020 will be very good and intrinsic value will increase again. The right price today should be around $0.85 with a long term intrinsic value of $3.00 within 24 months from now. Which represent a simple annual ROI of 199.5%. My exact ROI today is 186% and if the stock price was at $0.85, I would be in the near 300% return for one year. Joseisok, I realize that all these numbers could be well above your pay grade but there are many smart and intelligent people on this board that will agree with my number crunching so feel free to comment.
Regards,
Fearlessgg