Quote from: Franktank on August 16, 2013, 02:50:36 AM

Quote from: friedcat on May 17, 2013, 01:47:07 AM

So we feel that it is most responsible to let the shareholders decide how to do with the abundant Bitcoins. We will of course find other investments (which are focused on helping the Bitcoin economy therefore benefit all Bitcoin holders), but they are all involved in different risk and return model than a mining/mining hardware company.

The reality is that most people that own AM shares are very optimistic about the company. So those huge dividends have, to a large degree, been rolled back into the company rather than being invested in other ventures. This artificially inflates share prices.

As the margins on hardware decrease and cause the dividends to shrink (this will happen - in fact, it already has happened to some extent), that upward pressure on the share price will dissipate, and there will be a price adjustment. And that doesn't even consider any adjustment due to the fact that the company is less profitable in the first place.

Bitcoiners are a very idealistic and optimistic bunch, so naturally there's people waiting to buy AM shares at BTC3.8 on the belief that "it's just worth more". But equities markets are often savage in their adjustments, and this is a serious powder keg... I'm going to go on record as saying that AM will not yield 1.6 million bitcoins in profit in the next ten years (P/E ratio of 10). When people realize that, and try to cash in on their shares, there will be bagholders.