Valtrend - Butler Business Valuation

Archive for June, 2014

Big Stock Rally: Some Missed It

Friday, June 27th, 2014

… too bad too.テつ It seems that pension funds and endowment funds (more…)

The Implied Private Company Pricing Line

Tuesday, June 17th, 2014

Headed to Las Vegas today to co-present on this topic (and obtain CPE).テつ This is a new technique to help develop a cost of capital for a privately-held company.テつ It precludes the need to answer the following difficult questions: (more…)

Penny Stocks: Hot Again

Tuesday, June 3rd, 2014

With the stock market at or near all-time highs, penny stocks have also lifted off.テつ I recently read a Wall Street Journal article on Penny Stocks and an active penny stock investor was quoted as saying, “I like things below three cents because of the upside potential, and it limits the downside”.テつ Really?

Couldn’t these stocks – that have limited limited disclosures, may be subject to “pump and dump” schemes and areテつvery difficultテつto value given existing informationテつ– go to $0?テつ If you sunk $100,000 into a stock at $0.03 and it went to $0 – orテつbecame delisted or bankrupt, that is still a $100,000 loss.テつ Noテつlimit there…