Post
Topic
Board Securities
Re: ASICMINER: Entering the Future of ASIC Mining by Inventing It
by
stripykitteh
on 28/08/2013, 01:50:14 UTC
I think his main critique is mainly pointed towards the recent decrease in share price. I don't think the decrease in share price is a failure of the pricing mechanism. It's rather the outcome of a liquidity crunch (more investment opportunities than capital, causing chronic undervaluation), combined with the deployment cycle of ASICMINER miner and their dividend policy.

I expect the share price to stabilize above 2 BTC/share. If it does not, it provides an incentive for previous owners to move back into the market.

I know you are an early investor and I presume a board member, so you have access to lots of information that most people don't have. But that is part of the problem with valuing AM as a run-of-the-mill investor. The market occasionally get short updates from Friedcat that give a general idea of where the company is going, without too many specifics.

Last week was a case in point. The dividend was low, so everyone dumped their shares in a panic. Then we were told some BTC was held back for gen 2 chips. What we *don't* know is:

- how long has Friedcat been holding back dividends
- how much has he held back
- how much more does he need to pay for the next gen
- how much stock is still on hand

etc etc

When the market operates in a near-vacuum of information, the only things we can go on are:

- the dividend
- the estimates of hashrate
- estimates of hardware sales
- any news about new competitors

which is why the share price bobs around like a cork in the ocean, as I'm sure it will continue to do until something changes. I think that's now a bigger factor than the lack of capital compared to investment opportunities.