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Re: Rhenarium post# 68939

Tuesday, 08/05/2014 11:54:06 AM

Tuesday, August 05, 2014 11:54:06 AM

Post# of 80876
Rhen....

You make several valid points (I agree with much of what you wrote) but let me correct (add) one half to the statement upon which you only partially quote me:

God commanded that fair value for any company is always 1x revenue while EPS, EPS growth, revenue growth, FCF, and FCF growth are irrelevant for valuation purposes;



Irrelevant for valuation purposes when Diluted Shares Outstanding is growing at faster % pace than Net Sales and/or Net Income.

When you fail to calculate the other half of the equation, you are simply a mark in the con game. These guys are still playing the common SH for suckers and the SEC investigation will be open for a long time.

Obviously in the con you need to bait the trap at times and that is what happened when the share price fell to $6 but the meat is no longer on the bone.

With respect to fair valuation, I wrote a few days ago IMO the next level of possible achievement (target) would be 1x revenue but when you have consistent and massive continuing dilution that target may NEVER be achievable thus you are the greyhound chasing the mechanical rabbit that you never quite catch.

I am amazed at the lack of sophistication/intelligence on this board regarding this topic as the potential upside is quelled unless you are in the executive suite granting yourself free shares and a $500K salary.


$600m in revenue with 50m shares outstanding still = $12.00

$1.2 Billion in revenue with 100m shares outstanding still = $12.00

Current authorized shares outstanding are actually 100m so think about that.






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