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Re: Inorout post# 28950

Wednesday, 12/10/2014 4:14:33 PM

Wednesday, December 10, 2014 4:14:33 PM

Post# of 63559
Right, but you stated:


Just don't think it makes any sense to pay 10X SLTD's total asset value. Buying at these levels is like paying $10 dollars for $1 dollars worth of assets and all that extra premium folks are paying is on the perceived value of SLTD's "3D cell". I just don't think it ever makes sense to pay $10 for $1 dollars worth of assets.



You're right, that wouldn't make sense to pay $10 for $1 worth of assets if that was all we were buying.

But most of that "extra premium" folks are paying is for current and projected revenues/cashflows. To say all of it is the 3D Cell is absurd.

Sure the cell accounts for part of the share price but it was only real revenues/earnings and projected revenue/cashflow growth that lifted the stock and sustains it now. The biggest rises in share price were from revenue/cashflow related events, like the Q2 earnings and the MD Energy acquisition announcement, not the cell.

So, again, to say the "extra premium" folks are paying is all the cell and has nothing to do with current and projected revenues/cashflows is absurd. And, funny enough, that seems to be exactly what you're saying.