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RealDutch

10/30/14 9:40 PM

#75686 RE: stolpen #75683

I'm sure they both have their rules and preferences which ultimately shape their investor behavior or appetite. But the sole purpose of this model is to value a growth company and apply a multiple. And the simplest way to explain this to anyone is by saying that you cannot apply a multiple of 9... for a fast growing company like SIAF. Makes sense, right.
Of course then you also look at other company-specific factors which in our case is the China syndrome. And then all those other factors which Ben and Warren may feel is important like cash flow, cash balance, well, whatever. The point is that, all other things being equal, intrinsic value for this company equals $45. And then you take it from there. You work with that.