-The majority of the raised funds aren't even being reinvested into the company (99% of IPOs are raised to further fund operations and growth)
Then again, how many "traditional" IPOs pay out ALL net revenues in dividends? While I agree that the P/E needs to be discounted from 10 because the risks are understated, it is also fair to say that some credit is to be granted for paying out the revenues.
Is Mr. V cashing out 10% and sticking shareholders with the risk? Yes he is. But shareholders are 1) getting the dividend and 2) getting exposure to upside. This is worth
something. It's also not fair to compare SatoshiDICE to other ventures that only cost 2 or 3 times earnings. SatoshiDICE is at the top of the food chain, has already proven itself, and has considerable corporate goodwill.
I believe that a 10 P/E is overpriced. A reasonable value would be 5 to 7. It should be listed on GLBSE so that I don't have to worry about liquidity problems of a fly by night exchange that wants $200 entry fee.
I stated it in one of my previous posts, but I believe the extent that it has 'proved itself' holds less value than you may think. While it is at the 'top of the food chain', a very low barrier to entry allows for competitors to continue to compete. It is awfully presumptuous to think Satoshi Dice will hold a monopoly well into the future. Regarding the dividend, paying out all of the profits may not even be the best route. A clearly defined strategy of partial reinvestment of earnings along with a healthy growing dividend could be a better option. Though 90% of ownership is still held by the owner, and he has stated the intent to further investment in the brand, so that may not be an issue.
I agree, overall, Satoshi Dice is a top tier operation relative to other BTC ventures. But even great companies can have unattractive stock prices.