RE: RE: PriceHey giver...Here is a little more information for you...think on these things.
I admit, I don't have or know all the answers as to what is a "fair' price.
But these things I have a fair (no pun intended) amount of experience with.
To start, in this your post you said that "the price will be the price."
It's vague, but in and by itself it is correct.
But, I ask, which "price' are you referring to? There are a multitude
of "price(s)" floating around out there. The Accountants, the Buyers,
the Sellers, the Stock Market's Board, and many more. You reference
"the net present value....divided by the number of O/S shares." Yes,
this is also correct.
For something to do on Saturday afternoon, let us look closer at the
input that goes into determining this "net present value." From a
laymans perspective, nearly ALL the inputs are "variable" and come
from several sources. All input are "massaged" before they are
presented to the crunches or those which will be doing the actual
calculation. (The old saying..."numbers don't lie...but liars number".
Applicable here? Very much so.)
Remember, the "needed" number (the right price) was determined and
known long before the calculations are started.
Who can pinpoint the exact amount of the quantities of minerals, and
decide which should be include or which should NOT be included in
the calculations. Who knows what the exact future market price(s) are?
Who know what the actual production cost will be? The law of Supply
and Demand numbers? Overheads, Bonuses, Taxes, What the costs
will be for manipulating the Stock Prices on the exchanges? The input
list goes on forever... Oh, I forgot one...Miscellaneous. How could I
forget than one. I'm getting old I fear.
In the final analysis..."the price will be the price".
The price really started out to be the "price" they want it to be...and they
can and will be able to substantiate it my using a whole boatload of
variables to come up with the "fixed" number they want.
It's said that the Truth is that which IS.... The Price is that which "they"
want it to be. And that's the way it is, was and will continue. At least
here on the "V" exchange.
Also, I hope your "crystal" ball number are incorrect. I would like to see
a much higher number. For my "retirement fund".
westernkid