RE: RE: Yell Group "the market has this undervalued..fear/greed"
There is a great misunderstanding on this board. Under normal circumstances the assigned value of a company and the value they have placed on the common shares is the same thing. It is not in this case. The markets perceived value of the company is much greater than what they have assigned to the shares. The market is just pricing the shares on their own due to the belief that some day the present common shares will be grossly diluted or eliminated and therefore no longer indicative of the underlying value of the company. If general consensus was that the total present shares would only be 5% of the future total shares then the valuation they are placing on the company is 20 times what they have assigned to the present market cap (Total # of shares, times share price).
Bottom line...The are valuing the present shares, not the company.