RE:Need ideas to explain
I recall buying into Westaim (WED )after they sold their insurance business and paid out a huge divvy. The market rewarded them with a valuation that was around half of their remaining cash. Picked up the shares at .015 and .02 and waited patiently for the market to dummy up. Westaim eventually did a 50-1 rollback , making my buy average around .85. I sold it the next spring at 2.70 after the co. announced it was buying another business and did a huge financing. Cash eventually does make its way into the valuation as long as management isn't totally daft or crooked. I still believe this one is good for a double from here , for those who have patience. Stocks can trade at a big discount to cash for a long time especially when market participants are bearish towards the company's area of interest. In this case OIL.