Replies to post #31523 on Sphere 3D Corp (ANY)

[FrankyNutzz]

with these newly purchased disk revenues and OVRL, they will gravitate to that multiple as well, Imation had lots of cash on balance sheet but was loosing money, if they got rid of it im assuming they are money loosing as well, Sphere does not have balance sheet to absorb further losses, imo this dilutes company further, further obfuscates GW revenues and takes away attention from financials...if GW is the asset that can be worth 5x to 10x revenues, why bother with these crappy disk business that are worth 1x revenue at the high end...does not make much sense to me

[donkschmonk]

That's nice! That means that management was able to convince Imation that the stock with which we are paying is so undervalued, that it is fair that we are buying a business from them accordingly very cheaply.

It recognises the theoretical aspects of relative valuation and is very nice evidence that practically a company like Imation did not take the current share price at face value.