Some fundamental question, looking for your opinions.So do you...

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bread89

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12/12/18

05:31

Post #: 36826903
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Originally posted by Taurean7: ↑

Perhaps points made logically via a simple Q&A approach might better cover some of the concerns expressed.

Q1: Why would someone wish to buy out an unprofitable listed company?
A1: Because they can successfully offer a price significantly below the company’s fundamental value.

Q2: Why would the company’s owners agree to sell out at a price significantly below its fundamental value?
A2: Because the offer is higher than the market price, and they believe that the market is the determinant of a company’s value.

Q3: What represents the primary risk that the low buyout offer will succeed?
A3: Those shareholders who believe that the market determines a company’s value.

Q4: Why is the fundamental value not obvious?
A4: Because the company does not yet have earnings that can be applied to valuation metrics such as P/E or ROE.

Q5: How might shareholders avoid selling their holdings at undervalued prices?
A5: By identifying the irrational and emotional influences that determine the market price but do not reflect the value of the business.

Q6: What type of investor makes emotional price-based decisions?
A6: Retail investors – because unlike instos it is their own money at risk.

Q7: Why are early stage tech companies chronically undervalued?
A7: Because at that stage they have a high risk-averse retail shareholder profile.

Q8: What might be a fair fundamental value for CDY?
A8: Begin with the recent Blue Ocean Equities valuation as a base and go up.

Q9: With profitability arriving, what is the next ownership phase of Cellmid’s development?
A9: The commonly named ‘institutional phase’, where retail holders gradually sell their holdings to instos, who base their decisions on fundamental value (usually accompanied by the odd bit of manipulation).

Nothing positively or negatively biased or offensive there I assume.

All IMO

T7

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Some fundamental question, looking for your opinions.
So do you think by any chances we will have another round of CR to be happened by anytime in 2019??

When will we reach cash flow positive?

CDY Price at posting: 26.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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Add CDY (ASX) to my watchlist

Some fundamental question, looking for your opinions.So do you...

Top Stories

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This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

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History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

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Dale Gillham's weekly wrap: Bold moves in NZ, caution in Australia