They have already calculated the value of D-wave in their book plus they only have a few millions investment in D-Wave which might increase their book value by maybe $10M but again this has been calculated into book value by the management. So don't be too excited.
So it would stop at about $3.60, not much profit from buying here.
But it will come back to $3.10 level for confirmation it this is any kind of breakout.
Book value does not reflect the future potential of quantum computer. $TINY is all about the future and its ability to follow the future technological trend. The real question here is not how much D-Wave $TINY owns but how valid is D-Wave QC in the realm of practical use. If D-Wave is proven to be the next "must have" QC in the scientific and corporate worlds, $TINY minority shares is worth a whole lot more than current book value. Consider that the majority investors in D-Wave are from private placement, we are lucky to be able to participate in the QC wave thru $TINY at all.
It is all about perception of value that drives the price, book value only comes into play when perception of future value is absent.
I don't know why you got two thumbs down.
I'm long as hell and I thought it was a good post.
You are correct in what you say.
We own a minority position in D-Wave, so don't get too excited.
That said, you can't stop the stock market from getting stupid bullish about a stock like this.
Look what they're paying for Tesla these days.
You are correct.
TINY has only got a 4% stake in D-Wave.
That said, you know how the market is.
Sheep lead around by the nose following one big story.
We don't research our stocks all that well, particularly ones like this that are little known or written about.
I suspect once the news gets around how little of D-Wave we actually own, we go right back down.
But I don't care.
I'm not selling a single share.
Been in here since 2007 and even though I'm underwater this is one i won't let go of.
When I first began investing I was wrong more than right.
Later i realized sometimes even my so-called "wrong" guesses were right -- just right TOO SOON.
I would give up, and then six months later notice the stock had taken off.
I find stocks with a compelling story with a strong balance sheet and a fair price and hang on.
If they go down, they are just better bargains and I increase my positions.
I don't care if that's the trendy way to do it.
You can keep momentum stocks and glamour stocks.
I don't care what anyone says.
It's worked for me.
I NEVER worry about thinly traded stocks not having enough volume.
I don't care if we trade 0 shares all day, several days in a row.
This is one of those stocks that does nothing for months (years in my case) and then, one day you wake up and find out you're rich.
All it takes is
**An analyst gives it a strong buy
**A new breakthrough or patent is awarded
**A magazine article comes out or Cramer mentions it
**A successful IPO occurs
**A politician announces a new national technology initiative (emphasizing nanotech, of course)
**One or two big funds take an interest
.....and believe me, the volume will take care of itself.
Suddenly, we're all on a white sand beach sipping umbrella drinks, two years early.