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Re: Apdn believer post# 14620

Tuesday, 02/26/2013 3:35:36 PM

Tuesday, February 26, 2013 3:35:36 PM

Post# of 58855
"Does this make the company worthless?"...No it doesnt, but based on their revenue growth, the market doesnt feel it should be valued at over $100m.

While the technology is very disruptive, the revenue growth (anticipated versus actual) doesnt allow it to command the multiple it was trading at before. GARP (growth at a reasonable price).

Considering the company is still undergoing massive dilution ("paper factory") and profitability doesnt appear to be close, investors have to factor in what their shares (percentage of the company) will be worth going forward.

The market has turned from overly enthusiastic (>$200m valuation) and is turning to overly pessimistic. At some point it will stabilize and could represent a good buying opportunity.



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