RE:RE:RE:GrahamB simple question for you WalkOverTheStrt wrote: Graham -
"yes, if you want to play a game and just pick out a price, I'll certainly do that with you, based on some very tenuous assumptions, but you do realize that it will be a game, and without actual data it's pure speculation."
I'm not tracking the logic. So without some basis of revenue or other metric how would uoj personally know when to buy VPT? All stock buying is speculation in the future so I don't get why my question is out of left field to you. You post here weekly if not more so I assume it's to do more than throw negatives and eventually act if your buying hypothesis for this stock is hit. So what is that metric / range?
"The only logical approach to evaluating the relative attractiveness of investments and businesses. Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during its remaining life.”
This was written by Warren Buffett, the most successful investor of all time, and one of the richest guys in the world.
If you understand, this, you logically can arrive at a value or a price, which is what you’re asking. There are many ways to do it, but the starting point for most of us, is that the company needs to be cash flow positive, or for asset level, tech companies, at least, recognizing the intangibles, there still must be revenue consistently, and you can rework the numbers.
So intrinsic value or price, requires basic inputs, which we do not have with this company yet. Most people are focussed just on price and price action. What I’ve been saying all along is that’s not the way I do it. I can try to, and I even said at one point that if I were to choose some thing away from my area, simply on technical basis, then I could see a price of six cents or $.10 as being an entry point, but that’s actually not the way I do it and it’s more in response to folks here who are so fixated on price. As a pure gamble, I might do that, but not as an investor.
For me, to make a sizeable investment, I need basic inputs which include data. The company has not provided this yet.
Unfortunately, the company has had no sales or now only a few sales amounting to less than $100,000 often despite spending millions. I need to see significant demand for this product. I need to know that all the effort to solve us, it's going to result in people, actually wanting to buy this and not just been given the machine.
Even at a very basic level, using a multiple of revenue, given how little this company has made, would indicate that the company is grossly overvalued
So I am fine waiting until I see what I need to buy it. I have that luxury.