RE: Darkest before dawn?15 Oct 2019 13:34
Why does it HAVE to be valued at more than the current share price?
As an example, Just before they went dark on constituents, IH was roughly valued at about 8p a WPCT share.
IH is however, quite clearly literally, worthless.
So, how many other companies held by WPCT are like that? All the biotechs and others needing capital injection from a company thats run out of capital, to stay alive may be in that position, nt because they are base don fraud like IH but because if that capital injection doesn't come, they also will become worthless.
Their shares, lets say 'Acme Biotech' might be valued at say 50p each but if they dont get the capital, they go to zero, not say 20p or 30p. They go bust.
I'd also say the value of Benevolent is also severely overrated even after the downgrade. Its not a company with an entrenched based like say Microsoft or Adobe or Apple, its a company whose worth is based on having an AI edge. It only takes one startup, or one big boy like IBM (Watson) or Google, to leapfrog it, and they go to zero almost overnight. So, a massive risk in there that i dont think is understood or baked into the share price.
I understand soemone else worked out this was worth 3p a share. Maybe thats the basis of their estimation? Or of course maybe they are a shorter with an axe to grind, i dont know.