high; What's an always money-losing company worth?
In our books, [and most real accountants], it is
really 'worth' less than zero, until it actually
makes some money, or it becomes obvious that they
might make a dime, soon, before they run out of
cash, and have to make even more toxic loans.
By the way, we don't think that copi could even get
a new toxic loan now [like the old Cornys], unless
the new toxie had precedence over the ~8x-Super-Toxic
"Preferreds".
However, if we thought that copi might ever make a penny,
we would still never buy a long share. We would just
offer to loan them ~$100,000 cash, as a 20x-Super-Toxie,
with first dibs, over everything current or future.
[They are probably trying to call us right now.]
[But, we're still not sure that they will ever make a profit,
so how could they ever pay-off any loan, without finding
a newer + bigger + worser loan, to pay-off previous toxic
'deals', when they approach their default dates.]
P.S.;
The other big problem with copi, is the well-documented
"1-product + 1-customer" syndrome. It works for a short time.
Until the 1 customer quits needing them, and finds a much
cheaper + better supplier.
There are hundreds of now-BK, U.S. companies, that were
growing quite well, until GM starting buying parts from Asia.
Bottom-line :
We would never buy 1 common share long, in any super-toxic
company. But, we might buy their #1 most toxic loan. But,
only if were guaranteed to always be their most toxic loan.
And, all salaries + bonuses were required to be 'in-line'
with real + profitable companies.
Anything higher is just, you-know-what.
Averaging-down is profitable, for shorters, only.