Homepage
PR Newswire
06-02-2013, 12:28 PM
Mr Market is mindful of breaching the 'cap' of under $0.17 because that is exactly what is left in the company after paying out the dividend. I wouldnt say that those who are buying now are 'nuts' but they obviously are not giving themselves a fair margin of safety at the point of purchase. I reckon that those who purchased their shares after the dividend announcement merely look at the NAV of $0.19 and did not peruse the balance sheet carefully to identify the intangibles accounting for 34% of their net assets (or approximately 6.5 cents per share). Will a value investor pay for the intangibles by offering more than $0.12 before the dividend announcement? Few may, with deep convictions about the business perhaps. I will guesstimate that most in this forum won't.
and I guess you should concur that past issue price at IPO has no bearing on their current value or worth now.
and I guess you should concur that past issue price at IPO has no bearing on their current value or worth now.