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Re: shabby47 post# 8997

Tuesday, 12/09/2014 8:51:28 PM

Tuesday, December 09, 2014 8:51:28 PM

Post# of 16439
"That is one man's OPINION which in my opinion is wrong since absolutely no companies are valued solely on a couple quarters of financials."

I didn't value Nanologix based on a couple of quarters. I didn't value Nanologix at all. I presented a reverse analysis based on the facts.

Fact #1. The average net margin for the industry is 16.7%
Fact #2. The average PE for the industry is 57.8
Fact #3. Nanologix spends at least $288,718 per quarter in expenses

"If all that was involved is plugging numbers into 3 equations, then the market would be pretty boring."

Part of a valuation is done by computing numbers. The other part is by measuring the consistencies of what management has said compared to what they've done. In the case of Nanologix, both qualitative and quantitative approaches have been extremely easy to evaluate. Boring? I guess that's all in the eye of the beholder but I can tell you it certainly beats guessing and hoping.