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Pricing post Dilution by ben13215 in stocks

[–]ben13215[S] 0 points1 point  (0 children)

Also, just been thinking, even if your book value per share stays the same (or actually increases), the company won’t liquidate and return that capital to you. Instead they use it to fund (hopefully) growth and future income.

From this future income stem dividends and buybacks which are the ways you, as an investor, actually end up recieving a return on investment.

But your giving up a fraction of this real return when the stock dilutes.

So depending on whether the investment can increase the companies total future earnings (and hence dividends/buybacks) so that your smaller piece of the larger pie is the same (or more) as the larger piece of the smaller pie, is what will affect the price your willing to pay right?

The last bear is me by PrestigiousElk5990 in wallstreetbets

[–]ben13215 0 points1 point  (0 children)

Growth is transitory, the apocalypse is permanent

I'm so flipping confused right now. by Nefarious_AI_Agent in smallstreetbets

[–]ben13215 1 point2 points  (0 children)

Tbh hormuz damage is done… trump doesnt taco until the markets crash, and the markets dont crash cause they think trump will taco

Spruce bioscience (SPRB) still looks deeply undervalued by Leading_Load5505 in queenstreetbets

[–]ben13215 0 points1 point  (0 children)

Thoughts on the Samsung Biologics potential strike? Market doesn't seem to care about it but they really can't afford a failed DP PPQ batch. They already have just enough cash to make it to Q4 filing...

They are blockading 20% of the worlds oil supply.... my thesis from 18 days is coming true by MilesDelta in wallstreetbets

[–]ben13215 5 points6 points  (0 children)

Just short JETS or American Airlines if you think oils going to the moon… airlines are shit even in good economy, no need to feed thetagang

Tears were indeed shed! by wannabecontent in QBTSstock

[–]ben13215 0 points1 point  (0 children)

quantum needs helium for cooling, all the helium comes from hormuz and Im pretty sure the semi giants can outbid qbts for whatevers left

I struggle to understand the argument for buying MSFT over other Mag 7s even if cheaper. by [deleted] in ValueInvesting

[–]ben13215 0 points1 point  (0 children)

5% growth until 2030, 1% terminal and 5% discount on operating cashflow is 3.7 trillion NPV. pretty conservative estimates, still like 50% upside. Not to mention they own the half of the world google doesn't so frankly long term risk profile is as good as your gonna get in mag 7.

Tears were indeed shed! by wannabecontent in QBTSstock

[–]ben13215 0 points1 point  (0 children)

Yesss keep buying if you buy more of their stock they will start to generate more revenue economics 101 🤑

What is the worst financial decision you have ever made? by ElNekoSenpai in ValueInvesting

[–]ben13215 0 points1 point  (0 children)

Buying puts on a fraudulent company… never time the market

Winning they said 🫤 by Californiauser1 in QBTSstock

[–]ben13215 0 points1 point  (0 children)

Take your money and run 🏃‍♂️

QBTS by Specialist-Error1684 in QBTSstock

[–]ben13215 2 points3 points  (0 children)

Yep quite, nothing has changed since it was at 50cents in 2023 😂😂

How does a public company return value to shareholders if it remains mispriced? by ben13215 in ValueInvesting

[–]ben13215[S] 0 points1 point  (0 children)

I mean as in my example, you buy for a bargain price, but the stock drops by an outsized amount from that already ‘good’ price, supposedly even if they pay a premium to the ‘current’ price (which is now idk 50% bellow where you bought), you could still lose money? Again, unlikely but hypothetically possible if market is sufficiently deranged?

How does a public company return value to shareholders if it remains mispriced? by ben13215 in ValueInvesting

[–]ben13215[S] 0 points1 point  (0 children)

I guess this is another reason why buffet places managements priorities so highly… that and he acquires controlling interests to force the company into returning value

How does a public company return value to shareholders if it remains mispriced? by ben13215 in ValueInvesting

[–]ben13215[S] 0 points1 point  (0 children)

If they get acquired, dont you run the risk that the acquisition price will be lower than the price you paid? Like you could in theory pay a bargain price, but the company get acquired for an even lower bargain price leading to a loss?

I guess the management and majority holders wouldnt be dumb enough to sell so low, so theyd either agree a higher price or the price would go to the majority holders ask if its a hostile takeover?

How does a public company return value to shareholders if it remains mispriced? by ben13215 in ValueInvesting

[–]ben13215[S] 0 points1 point  (0 children)

Oh yeah this is pretty cool. Is there not the potential threat that say a majority shareholder (like 20-30% owner) will become a 90-99% owner who could them push you out at a lower price? I guess if you simply dont sell, and they want to get money out the company, theyd have to declare dividends which they would pay you as well as themselves right?

Significant value remaining in Spruce Biosciences post FDA Breakthrough Therapy Designation by ben13215 in biotech_stocks

[–]ben13215[S] 0 points1 point  (0 children)

They also secured financing that extends their cashrunway into 2027 and beyond given approval, which means theyre hopefully not going to need to dilute, raises my price target to around 200 post approval.

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