Excerpt from 'The Intelligent Investor' page 83
The value of any investment is, and always must be, a function of the price you pay for it
That did not mean--nor could it ever mean--that stocks were worth buying at any price. Since the profits that companies earn are finite, the price that investors should be willing to pay for stocks must also be finite.
As for your # 4:
The last 45 trading days have brought us welcome upticks in the PPS. Moreover, as one poster noted several weeks ago BUNM experienced a Golden Cross 'for chartists, this cross is a sign that the market mood has turned decidedly in favour of the stock.' 20-Day moving average has sliced above 50-day MA.
I expect this upward pattern to be enhanced between now and June 2010. How much depends on a number of factors with a great unknown being the company's approach to 2,000,000 PR.
Will the co. offer any new material guidance? Are major developments happening behind the scenes? Have they received any buyout offers of consequence?
I have stated this a number of times but based on personal deduction, technical analysis and opinion(s) my own and others I do not believe .0001-.0003 is an accurate value for this stock.
The fact that PPS is hovering within this range is merely an indicator of perceived value. As human beings trading we often get it wrong more than right.
Who believes that a 2,000,000 Web audience hypster.com that is adding 60,000 + more users a month is only worth .0001?
For all we know, the CEO may have good reason(s) and hard evidence to believe value should really be somewhere between .0015-.01
IME Conditions are now as such that there are short-term, mid-term and long-term reasons to take a position here. hypster.com has grown to (nearly) 2,000,000 organically and will continue to grow unabated for the foreseeable future.
Potential for accelerated growth and converting some of user base into paying members are real possibilities. There are 450 plus blogs that are helping to spread the word about hypster.com at present. One major artist endorsement for hypster.com could put us into the stratosphere for awareness and super-charge growth.
The CEO is now involved in social and business circles that increase visibility and networking opportunities. IMO the odds of merger, buyout and/or other positive co. developments can only be increasing.
Finally, I've never stated this before but we've seen a number of biting personal attacks on the CEO over the last year only to find that CEO is very well-connected to potential funding sources and this is just through his family connections alone.
The bashing has obviously tried to portray CEO as small-timer unable to fulfill any promises to shareholders.
One must wonder why all the attacks on a worthless co. CEO, concept etc.???
Followed by CEO's 'move' from Canada to Los Angeles--
