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Re: SW Investor post# 68173

Wednesday, 07/02/2008 3:37:52 PM

Wednesday, July 02, 2008 3:37:52 PM

Post# of 95064
The way you value any stock from what I understand is the present value of its future dividends divided by the required return or risk-free rate. All that with consideration of how a company capital structure is structed (debt and equity). These pinks/bb stocks lack most fundemental variables to give a value to conclude whether or not an arbitrage scenario exsist. They run on speculation, fluff and sometimes no reason and fall in value for the exact opposite reason. I guess whether or not you would consider merging with a company or taking it public, rest on your belief on the underlying value of product or service that the company represents. Then making sure its books and records are in tact. CCAJ has some believers for sure myself included, more so in management, because there really is no service/product here. Only hopes of one.

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