200 gone with some mining karma back
I'll take the karma. Friedcat has integrity and that is worth a *lot* in this climate of scammers, opportunists and fraudsters.
Frankly, my valuation of AM has increased more than the 200 BTC that Friedcat gave back. Knowing you're investing in a company run by an honest guy is worth a lot.
Same. You're a pretty analytical guy, so I find it interesting and meaningful that you're assigning importance to something unquantifiable. Honesty doesn't fix datacenter woes, shipping glitches, nor competitors' efforts. But for me, it is another indicator that I can have a decent level of trust in this guy whom I've never met, nor have any "real world" visibility into. Doing business on a handshake is rare these days. Doing so successfully... well, I'm pleased to count myself among the lucky ones to be a small part of Friedcat's world.
I normally don't consider intangibles (and, as a rule, I avoid companies where intangibles make up a significant portion of the value).
But this is different. There would be little to no repercussions to Friedcat walking off with everyone's money. The counterparty risk is huge and
must be considered in any accurate true-value calculation.
This, to me, reduces the "effective converted liability" represented by counterparty risk by significantly more than 200 BTC. That's how I reconcile it with the rest of my analysis, at least.
Friedcat has built a nice track record of trustworthiness.
EDIT:
Just now remembering when you posted this.
You're right that this is not the real concern. If Friedcat was bent on defrauding shareholders, there would be many better options. But that potential IS there, and we've had so many past catastrophes (Bitcoinica, Pirateat40) and failures (BFL, now Avalon) that I'm surprised to see so little discussion of the risk.
Even though I'm sure you still feel AM is overvalued, I'm happy that you now understand why there was so little discussion of risk.