Ok - here is a "why" question, that doesn't have a specific answer. It concerns Buildmax - BDM - to use an example. But you can apply it to others as well. My question isnt around whether I should buy or sell. but rather how the market values a company. At current price around 18 cents, BDM has a market cap of around 30 mill. In their last set of financials, their tangible NAV is around 247 per share. So TNAV with just over 181 million shares in issue gives a cap of around 447 million. This raises my value question. Is the business model so bad, that any semi-wealthy joe soap could afford the entire company (buying on market)? Or is the market missing something. At what point, in a rubbish share's life, might it turn - or will it continue its slide to 0. Will the market start buying a share like BDM again? BDM is now worth half the market cap of what it was worth, when I first bought a tranche in about 2004. It had a cap of around 60mill, then. Surely this has to be the contender for current dog of the JSE. After 7 years of hope I finally sold my position in BDM.
... View more