RE:RecapRe: "stock is so low because you guys are selling it so cheap"
Ans. Disagree.
Shares are not sold cheap or expensive : They trade at whatever someone is willing to sell them for and someone else will pay for them. That's it.
That also means that enterprise potential, various influences and sentiment either positive or negative are the real drivers and impact the real s/p.
btw. Comparing intrinsic value to the real s/p is a great mind game but is meaningless as to the value that shares trade at.
Some key ROI s/p considerations:
Time: ROI hasn't penetrated it's market to create material growth in donkeys years -
sentiment - negative - after all this time the potential for growth is worthless (laughable) and will remain so until proven otherwise.
ROI has steady annual contractual income that's only recently started to slowly increase-
sentiment - positve - who doesn't like steady reliable income?
ROI is cashflow positive -
sentiment - positive - income exceeds expenses. This is good value.
ROI's buys back it's own shares -
sentiment - positive - lower float means higher theoretical intrinsic value (classic mind game)
also neutral - no growth potential means that buybacks provide enterprise value reductions on a dollar for dollar basis. Spending keeps enterprise value flat/ no asset growth or immaterial asset growth.
also negative - assets that might be used for growth are elminated, reducing potential of potential and reducing enterprise value as above.
ROI's imbedded threat of possible share consolidations -
sentiment - negative - unknown timing of an event that has very high probability wiping out shareholders.
Of course your thoughts may differ and so they should:
Score the over-all sentiment any way you like and value the shares as you see fit:
Your opinions matter!
The smart money says that material sales might change the over-all s/p equation but until then.....
Today all this and a whole lot more, plus about a nickel gets you a share of ROI.
No one is selling it cheap, it's what it's worth.
dyodd
knowsjack