Verus International Inc (VRUS)

[asymmReturns]

It’s not an approach. It’s a truism.

We know capacity/potential. Since the 10K will present the first numbers since the spin out completion and basically represent half of the year’s progress, I’m assuming things will have changed, but to what degree is anyone’s guess. It could be a very happy surprise or it could be incremental revenue growth. Markets are anticipatory, of course, but we don’t have any substantial history from which to extrapolate. This is a very early stage company with potential, but so far they’ve had some real struggles executing on what their guidance has been. I don’t see a projection based on that as very useful given that execution. Once we see a few quarters of more or less consistent (or hopefully accelerating) growth I think projections are more useful. And I think that’s when markets will begin to reprice the stock accordingly.

If anything, to your point, this month’s price action is indicative that we are both right — the price moved up in advance of news coming in December which IR promised... and as the market started to realize that was less and less likely it walked right back down. Anticipation without confirmation of expectations has no legs.

The one thing we always know for sure about startup projections is that they are wrong.