FSD Overvalued by 270% Well it will be interesting to see what Nietspeil/Stetson and Mousetrap , indicate what methods Morningstar are using because that will generally tell you how to come up at a certain price.
For example, Scotiabank has a value of .027, and it’s currently trading at a price to book of 2.7. I believe they use the balance sheet method which would explain this if you look at the market cap and back this out.
I’m pretty sure MorningStar uses a cash flow analysis. It’s also not reviewed by an analyst I’m pretty sure, which would explain why they would be hanging by this number. I say hanging, because if you use the cash flow analysis, you need to discriminateWhere the cash flow is coming from.
It’s also depending on how reliable it is which is why I asked about the reliability level, what you would expect to be lower. Again I say this because if you look at the cash flows, they are not coming from operations, they’re coming generally from financing which are nonsustainable generally and most analysts wouldn’t use this to generate a intrinsic value, which is liekley the case here.
Again leading to my conclusion that this is probably not reviewed by a specific analyst, and just generated from a proprietary computer model that uses AI on a cash flow basis
FWIW I posted on the stock or year ago, and came up with a basic valuation of around $.10 which is where we are.
In terms of speculation, and this is purely my speculation,I also posted that this could go up to .8.-1, not based on fundamentals but based on the mania and projections based on what they were telling us. We reached aroun .94
This is all a matter of record, and you can look at my old postings on this.
Right now, I would put the valuation around where Scotia Bank has it if you’re using a balance sheet so about .03 to .04 realistically however, it looks like it’s going to hang around .9 -.10 until the financing is done.
Note that many of the shorter‘s have disappeared now, and the short interest is low
So for all those who think it’s manipulation, I don’t buy that. There’s just not a lot of interest in the stock right now. There’s very few people buying FSD now
It’s kind of funny to read people promoting the idea that there are people trying to beat the share price down so they can buy stock, when the stock is down here, and there’s currently an offer by the company to sell 5 million US at $.10
If they get some great news and some new investors that don’t know the story, and buy the new story of the Pharma angle this thing could rise again.
If it doesn’t, they’re simply going to be using up cash, as they start their new clinical trials, raising more funds, having further dilutions as they give more shares up, which is going to impact the balance sheet further.
Also those who are saying that this is a one time spend, haven’t read the financials going back to when this company started posting
Lets be clear, they’ve consistently used up millions of dollars of cash every quarter, so it’s not a one off -it’s routine at this point.
Dont believe those who try to convince you not to believe that company sanctioned/published financials are conservative-that the losses aren’t real
They’ve also indicated in their most recent statement that they’re going to continue spending cash and they don’t expect to be profitable anytime soon
If they do up list, they’re going to do a reverse split which in the long run won’t be good.
Those same people were promoting others to buy at .90,.80,.60...
‘Points for persistence
Do your own due diligence
Thats my take-