Forum Archive Index - July 2001

["ryanrite" <ryanrite@xtra.co.nz>]

Thanks Snoopy
Athol
----- Original Message -----
From: <tennyson@caverock.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, July 05, 2001 11:25 AM
Subject: Re: [sharechat] MMD


> Hi ryanrite,
>
> Just in case you haven't figured this out.  This is ITC all over
> again.
>
> IMHO ITC still has a very impressive portfolio of investments, and
> given it is a year since the tech wreck and they have a years
> development under their belts I suspect that from a product point of
> view ITC never looked better.
>
> So why is the share price of ITC languishing?  It is because
> sentiment has changed.  Investors have become less patient waiting
> for the returns to come in.   And ITC have no on-going returns of any
> substance.  So the share is priced more or less entirely on sentiment
>
> >
> > Wow micromedical Industries Ltd (aus)   MMD
> > I see the Americans have beaten MMD to the human implant of the
> > Artificial heart This must be why their share price has been
> > falling? Will it stop falling?
> >
>
> Yes.  When is a harder question
>
> >
> >
> > How much good will is there in their price?
> >
> >
>
> The answer is 100%.
>
> There is nothing but goodwill in their share price of MMD.   They
> have no earnings and the time when their income will exceed their
> marketing expenses is too far ahead to predict.
>
> >
> >
> >  When will they start their human implant? Should one exit now
> > or wait for good news???? Any ideas anyone????
> >
> >
>
> I suspect MMD is worth somewhere between $1 and 10c.  And not only do
> I have no idea which valuation is closest to the truth.  There is no
> way to know it.  It is a classic high risk high return situation.
> It is the sort of company that Buffet wouldn't touch because he
> couldn't understand it.
>
> Does this mean it is a bad investment?  Not at all.   It could still
> turn out to be a real winner, but as to when, well who knows?
>
> From a long term point of view the way to handle an investment like
> this is to buy in cheaply before most people notice the share.  Then
> when the investment doubles sell out half of what you own in it, so
> that what you have left in there is 'play money'.   Then ride the
> growth.  If the steller growth continues you'll do well.  If it
> fizzles you will still have the amount of money that you started
> with, and you can go looking for ther next punt.
>
> It is the same question as if you asked what the true value of ITC
> is, 10c or $1?   The answer is both, depending on the sentiment.
> SNOOPY
>
>
>
> ---------------------------------
> Message sent by Snoopy
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "Dogs have big tongues, so you can bet they don't
> bite them by accident"
>
>
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