RE:RE:I posted the below on this board on march 3, 2018Listening for what the market tells you is literally the worst thing you can possibly do in investing. There has literally been zero significant news to take this thing from 3-4 to 1. If you did the math a couple months ago, you could quickly see that it’s hard to justify an enterprise value of 1.5B for something that makes no money and only has revenue of 400M. Now we are closer to 1B EV, which is stil high but control of these assets is probably worth more than 160M in equity. So if you bought this at 4, I mean what were you thinking (honestly)?
Now if you’re going to gamble some money on the chance it will turn around, at least wait until the equity is close to zero and don’t bet the farm unless you are positive. When you’re buying deep value and it goes down, have the guts to stay in and buy more. If you don’t have that confidence, then you’re either betting too big, or you aren’t confident in your analysis. If you loved this at 4, you should be on your knee at 1 (I did not love this at 4 BTW).
Long my lunch money at 1.18. If it went to .50 on no news, I would double down. Unless this thing goes bankrupt, the equity is worth more.