TSXV:AUN.H - Post by User
Comment by
Bentonstockson Sep 25, 2007 12:53pm
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Post# 13464177
pipe & cook
pipe & cookCome on guys... You both have been around long enough to know that the market often does not fairly value companies for a variety of reasons - sometimes good comanies that have a much higher book value are not trading where they should be, and sometimes the market gets carried away and overvalues a company in the extreme. In the case of undervaluation, its up to the compnay and its agents to set the market right... Do not let the market tell you what your comany is worth... You know what its worth... You have done the DD and have followed its every move for months or even years... There are good reasons why the market has not given AUN its due credit recently - we know what they are. Ther are reasons why we use terms like 'undervalued' (market has not recognized true value) and 'overvalued' (market has gone crazy with its valuation) when we speak of company market caps - the market does not always get it right.
Here's an analogy... Let's say you have spent a great deal of money and time upgrading your house. From the curb it looks just like any other house on the block, but inside it is equiped with the finest upgrades, features and options that you know are not in the other houses. So you put your house up for sale with a forsale sign in the front yard, and people come buy, take a look at it from the outside, kick the steps, and say that its overpriced without really DDing the house and recognizing how good the house really is. Are you then going to through your hands up and lower your price even though you know your house is worth alot more, just because a few morons told you it was overpriced, or will hire a real estate agent and properly market the house to the right buyers instead - people who will apprcaite and understand what you have done to the house and pay accordingly?? I would think it would be the latter...
The point is, I think you are wrong to say that because AUN is trading where it is, that is what its worth and the market must be right. I think the market has been telling you for a while that your company is not worth what you thought it was and now you are starting to believe it. Bottom-line the market is wrong, and you need to snap out of your... err... brainwashed states. And I mean that in the nicest sort of way
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Regards,
B.