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Re: falconer66a post# 123384

Friday, 10/06/2017 4:31:03 PM

Friday, October 06, 2017 4:31:03 PM

Post# of 459499
You are suggesting that AVXL can one day be a $10k stock?

First of all, no it can't. Your math is off with regards to dividends. Berkshire Hathaway doesn't pay a dividend -- what does your math tell you about its valuation?

Secondly, $10,000 would put Anavex's MC at $500B, or 1.5x that of J&J.

Sorry, but this company would have to cure Alzheimer's, cancer, AIDS, and global poverty for it to ever have a $500B valuation.

I like your posts and I get this exercise is just for fun, but I worry about novice investors who will read this and actually think $1000 or more is possible. It isn't. Want proof?

If someone decided to do a public tender at, say, $80/share -- they'd get the shares they need to take over. Even with a poison pill provision, the company would be acquired for at most $120/share. And that is a stretch,
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