Post
Topic
Board Securities
Re: ASICMINER Speculation Thread
by
Pierre
on 17/07/2013, 22:46:12 UTC
Maybe an extreme example will help. If AM shares go up to 100btc each, but the dividends stay at about .025 per week. Is a 5% mgmt fee still going to justify TAT.AM selling for 95btc? Of course not.

I agree with everything you said except this. YES a 5% management fee means TAT.AM is 95 BTC when AM is 100 BTC. Why not?

Think about it this way: Eventually all stocks go to zero, no company lasts forever. If you buy and hold AM for 100BTC you'll make X BTC in dividends over the life of the company. If you buy and hold TAT.AM for 100 BTC you will make 0.95 X over the life of the company.

Therefore TAT.AM is worth 95% of the regular AM shares.