Rubble,
I apologize if I wasn't clear enough regarding the patents I mentioned. I listed patents held by my friend, not Franklin Chiang. I only meant to show that my friend has some noteworthy accomplishments to his credit and that his opinion/information about Chiang is a result of his being a "colleague" in the sense their fields are inter-related.
You wrote;
>>" No genius would sell a $400 million stake in his company (estimate based on ZITL valuation) for 1% of its worth.
Rubble, I don't understand why this point is constantly being brought up. The $3.5M was seed money, startup money. Based on fundamentals the company has no value today how the hell is it going to be worth $400 million 1 1/2 years ago !
What you and others are suggesting is that Franklin Chiang/ James Brady, et al demanded 1 1/2 years ago that Zitel pay $400mil for their 1/3 . Who in their right mind would do that? As I've said before investors /venture capitalists will only give you as much as it takes to turn the business plan into reality and get the company to the point where it's turning a profit. If you can find one that will invest based on the future potential of a company that has to be created first, tell them to contact me. I've got a deal for them
You wrote;
>>"I find the assertions of longs that they have faith in ZITL's and Chiang's potential, as a defense for owning ZITL, much like a person justifying valauing a hole in the ground at a billion dollars because they have faith there's gold inside...they could be right, and make some money, but probably they'll just be swindled
First of all I'm not defending myself to anybody here. My opinion about Chiang was my" answer" as to why I'm long, not my defense. My decision to bet on his ability to deliver a top notch product is my business AND it's based on his track record and past accomplishments which are IMO impressive.
If someone doesn't agree with it, then "Pasadena". There's the door. Go find the next inveestment. That's "THEIR" choice and their right.
Secondly if the hole had been dug by someone who had a successful track record of finding gold in holes, then yes, I'd give it a shot. Obviously you wouldn't. That's what makes horse races and this race isn't over.
Sorry about the mixup on the patents.
You have a good weekend and enjoy your holiday.
DD |
