I will answer. But unfortunately I have to refer to "over capitalisation". Well sort of.
If you look closely, WFM is capped at just under $80m or thereabouts just on the ordinary shares on issue. It has $19 million in the bank. So the market is valuing WFM at 4 times it's cash balance (effectively it's NTA).
Is this a fairly priced company? 4 times it's NTA?
If it were delivering profits at say a PE multiple of 10 one could say yes?
No shareholder has any idea what sort of profit or revenue to expect so in conclusion I say it is way over valued. Yes at 12 cents still way over valued.
Thank god for Chris Morris being on the Board. That alone is worth $30 million in market cap in my opinion.
Effectively you are trusting the Board to deliver what? What have they told you? I'm not trying to antagonise nor down ramp just stating the obvious.
If I were buying a business, I sure enough would like to know what revenue and profit I would be expecting. Don't you want to know?
:) Nic
WFM Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
