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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (62463)	9/12/2019 2:38:09 AM
From: Paul Senior	1 Recommendation Recommended By E_K_S Read Replies (2) \| Respond to of 78753

Occasionally an obvious non Graham type, maybe not even a value stock, slips in and gets posted and dscussed. I know I can count on you pointing out the inconsistency of that about this thread.

To: bruwin who wrote (62463)	9/12/2019 9:42:43 AM
From: gcrispin	Read Replies (3) \| Respond to of 78753

Bruwin, May I respectfully suggest that "value" is a rather amorphous term in that there is more than one way to define its parameters. I see many stocks posted here that don't fall into the Ben Graham model of value. In fact, if Mr. Graham was alive today, he would mostly like be shorting this market. So I submit that that when looking at amrs you have to research it beyond the financials. The company most likely currently has an enterprise value of 400-500 million. It has been stated that they have invested over a billion dollars in their technology. That investment does not include the value of their IP, their 600 plus patents. If you look at their skincare business alone, they did 20 plus million in revenue in 2018. They are on track to do 40 to 50 million this year and 100 million in 2020. They make squalene which is now being placed in over 3000 brands. Most private skincare/cosmetic companies sell for roughly six times sales. You can see the discussions around the company, Drunken Elephant, which is projecting 150 million in sales and in discussions for what is rumored to be a billion dollar price tag. Here is an article you might find interesting. forbes.com Amrs currently has a contract with Lavvan to make CBD through fermentation. The agreement includes 300 million in milestones and a royalty on all sales. They have collected ten million from the first milestone. They expect to collect 15 million later this year and 50 million in the first half of 2020. I won't go into their sweetener business or their fragrance and flavoring business, but you get the picture. So who are the big shareholders? John Doerr is by far the largest. Rick Schottenfeld recently loaned the company 12 million dollars with warrants. Ben Graham said, "The intelligent investor is a realist who sells to optimists and buys from pessimists." I agree with that value proposition.