On Book Value, Intrinsic Value, and leaking boats So much opinion here, and emotion.
Book value based on patents and promise, on goodwill, especially when pledged as collateral to directors for a loan, are tenuous at best.
Let’s look to the investing greats to help us shall we?
Book value, in Value investing 1.0 was important, with Benjamin Graham, but even one of the greatest, if not the greatest investors of all time, Buffett doesn’t use this as the most important metric to value businesses :
"The very best businesses, the really wonderful businesses, require no book value. They -- and we are -- we want to buy businesses, really, that will deliver more and more cash and not need to retain cash, which is what builds up book value over time...
https://finance.yahoo.com/news/warren-buffett-explains-why-book-161449202.html f
What is most important?
Buffett says…
“We are looking at a whole bunch of businesses, how many birds are they going to give us, when are they going to give them to us, and we try to decide which ones — basically, which bushes — we want to buy out in the future. It’s all about evaluating future — the future ability — to distribute cash, or to reinvest cash at high rates if it isn’t distributed.”
'So cash flow, predictable cash flow-moats...
And what does he say about companies that are losing money, year after year?
‘Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks."
https://www.fool.com/investing/2016/07/24/10-warren-buffett-quotes-that-teach-us-about-inves.aspx
So what about PYR?
In the words of the Globe and Mail article :
"The company has never made an operating profit in a dozen years as a public company, and the shares are down 93 per cent from the February, 2021, highs. The big winner at PyroGenesis, instead, seems to be the Pascali family. At least, for now.”
https://www.theglobeandmail.com/business/commentary/article-pyrogenesis-quebec-regulator-fraud-allegations/?cmpid=rss be
All in my opinion, do your own due diligence, and don’t trust what you read on these boards by those who are promoters, or those who are a realist, including myself
For education, laughs, and learning-not to invest on...
'cheers G