Slate Office REIT 9 00 Convertible Unsecured Subordinated Debentures Exp 28 Feb 2026 T.SOT.DB

RE:RE:RE:RE:RE:RE:They were selling into the BIDs today

[Ladislav3]

I think you've missed the point about your formula doing nothing. No one uses it for valuation purposes.

For example, if the price of Slate today was $10.80 per share, your formula would justify the price. $10.80 price / $1.08 earnings = 10 P/E * 1.08 earnings = $10.80 valuation.

The same applies no matter what the stock price of Slate is. 

wheeloffortune wrote: Newsflash, that's how institutions and mutual funds value what they'd pay for a stock.  Earnings down=lower stock price and that's what institutions will buy it at.  Another example, in May, Highliner Foods cut their dividend from 7% to 2.4%, but their earnings went up and the formula gave an $8.60 SP.  The SP went up a buck and a half to $8.60 in the next few days because of the earnings even though the divy was slashed over 2/3rds.  HLF's SP is still at $8.60. 

AND GUESS WHAT?  At the time of this point, SOT's SP fell to $5.96.  Getting closing to the $5.94 accounting valuation.  Coincidence?  I should think not!

Ladislav3 wrote: You do realize that, if you take the price, divide by earnings, and then multiply by earnings, the result will always be the price?
This has nothing to do from an "accounting perspective".

wheeloffortune wrote: Accounting uses of two values in valuation.  Also, AX.UN=P/E Ratio X EPS = 16.4x0.72=$11.81.  AX's trading at $11.81 now.  

Capharnaum wrote:

wheeloffortune wrote:  = 5.5 x 1.08 = $5.94.  $5.94 is what the stock's worth now from an accounting perspective.

From an accounting perspective, the stock would be worth the book value.