A lesson learned. A number of people on our board were banking on the presentation made yesterday by TDCP to boost the stock price. I discouraged that kind of thinking. “Dog and Pony shows” as these presentations are sometimes called as a rule do not cause the pps for a stock to rise. For every presentation made by the stocks that I have owned over the years, for every one in which the stock pps went up significantly because of the presentation, about 30 to 40 of the stocks either did nothing or went up or down in a normal fashion after the presentation. Please do not bank on Dog and Pony shows as a way to boost the pps–at least in the short term.
Second, I disagree with ancil’s viewpoint about TDCP being worth .02. He cites future earning etc. Many excellent analyst agree with his method of evaluation. I do not share that view. I believe a traditional balance sheet/income statement valuation is the least accurate valuation for penny stocks like TDCP. I think Vector Vest uses a very poor valuation method for penny stocks and others as well like pharmaceuticals. When I bought 100,000 BZ warrants for .01 in 2009, Vector Vest stated that BZ (Boise) was a bad investment. A year later I sold my 100,000 warrants for .90+ and some over $1.00. And Boise stock more than doubled in pps.
The true market value of a penny stock in the short term is based on SUPPLY AND DEMAND. It’s value is based on whatever someone is willing to pay for the stock. On paper TDCP’s value may be .02 like ancil said. But that said, so what? The value of TDCP is whatever someone is willing to pay–we call it SUPPLY AND DEMAND.
The single biggest mistake investors make with penny stocks is to think that the present short term price of the stock represents the company’s true market value. Supply and Demand says the stock is worth .046 as of Wednesday, April 27, 2011. But it’s a mistake to use even that number. What is the value of the 3D's CSpace patent? What is the value of Dr. Hakki Refai’s skill, experience and ability? Those numbers are very difficult to measure and they never appear on a balance sheet but this I can say: it is considerably worth more than .046.
