btt

[funktion]

I clearly don't understand enough, because I keep being wrong with my price estimates for BM. If dividends do not motivate investors, then it must be the potential future growth of the company, which with BM is tied to the miners they own and acquire. Still BM does not have production capabilities like AM (not that I am aware of atm), and their assets (miners) are depreciating in value.[

I am looking for the pot o' gold at the end of the rainbow for BM, but I cannot see it. I cannot see why investors have such a strong valuation of the future of BM.

Quite likely it is a bubble pumped by irrational investors who are excited about dividend growth but do not understand fundamentals.

If you do not want to make your own profit projections, you can look at similar companies. Say, Nasty Mining now has 270 Gh/s of hashing power (via 5x BFL 60GH/s ASIC Miner), which correspond to 13.7 Mh/s per share. Those shares are traded at about 0.46 BTC. So, Nasty Mining offers 30 Mh/s per BTC. (Cost of 1 Mh/s is 0.03 BTC)

BASIC-MINING's hashrate is 225 Gh/s, which corresponds to 4.5 Mh/s per share. Share price is about 0.37 BTC, so we have 12 Mh/s per BTC, or 0.08 BTC per Mh/s.

So whatever it is, it is definitely not about hashrate... But if you look closely, BASIC-MINING share price growth when hashrate increases, so it is very likely that investors are just irrational and just buy more when they see positive news.

Now if we continue BASIC-MINING vs Nasty Mining comparison, BASIC-MINING definitely has bigger cash reserves. However, Nasty Mining has 5x BFL 60 GH/s ASIC miners in preorders, so it will double its hashrate when those are delivered (I'll remind you that they already got 5 such machines, which are mining for a week or so already.)

Nasty Mining also bought some shares in group buys, and it has some liquid assets.

Well, anyway, fundamentals do not matter much when people buy irrationally.

What is irrational about the desire to invest in a well-managed company with a recent track record of rapid growth?

[bobboooiie]

Travelling today, so will be unavailable. I'm going to try to calculate today's dividend earlier than usual and queue it up, but I may end up just paying PPS and squaring it with tomorrow's divvy.

Cheers.

Bring some new miners as gift from the travels as usual !

[damiano]

Travelling today, so will be unavailable. I'm going to try to calculate today's dividend earlier than usual and queue it up, but I may end up just paying PPS and squaring it with tomorrow's divvy.

Cheers.

Bring some new miners as gift from the travels as usual !

Well he is sitting on 429 BTC from the sale of AM.   

[dexX7]

Quite likely it is a bubble pumped by irrational investors who are excited about dividend growth but do not understand fundamentals.

To be honest, it was interesting to observe the rise from yesterday, because there was a spread of around 0.5 Bitcoin, but still big money came in. I would never go so far and call someone's investment irrational. I'm pretty sure the buyers knew, what he or she were doing and intended to do so on purpose.

Since my last post in this thread, I watched BASIC-MINER's development closely and I noticed every news post on BTC-TC or better to say, any fundamental change like receiving another Avalon unit, triggered another price rush. Yesterday was interesting, because no news were pushed on BTC-TC, but the announcement of selling 100x AM shares in this thread and the higher dividends might be the cause. I expect another rise after the forth Avalon unit was received.



^ Price was adjusted to Price = Price / 10 before the split, to make the chart consistent.

[miTgiB]

Just wow, I now have a 10-bagger

[Trillian]

Just wow, I now have a 10-bagger

Wow, well done. Maybe this is a good time to take profits...

[killerstorm]

What is irrational about the desire to invest in a well-managed company with a recent track record of rapid growth?

Because you might be buying at peak of "rapid growth".

If fundamentals are good, no matter how irrational the market is, you still win in the long term: you can just wait until you return investment through dividends, or share price is corrected via buyback.

But if you aren't looking at fundamentals and projections, only at "track record of rapid growth" and "well-managed"-ness, you depend on investor moods: growth might continue, or price might fall once investors realize that they can get bigger returns elsewhere.

[EatonABooger]

^ Price was adjusted to Price = Price / 10 before the split, to make the chart consistent.
[/quote]


very nice chart.  Good work and thanks for sharing.

thus far, basic-mining has been a very well run business, making very logical and sound decisions.  My comfort level grows a bit as time passes.  All aboooaaaard !

[creativex]

Official update from Avalon re:batch 3

Batch three Refund

Understandably, batch three has been overdue for a few weeks, whilst shipping is due to start Monday, and finish within 2 weeks. Those who do not wish to wait can fill out the form for a refund, please note the deadline for these refunds is before the 14th, once we start shipping we will not be honoring any refunds that gets posted.

bASIC-Mining has a paid batch 3, 4 module unit on order.

[iCEBREAKER]

Avalon is taking the BFL route of coerced refunds, great.  

"Accept our flexible definition of 'two weeks = Soon' or take back the money you lent us with no interest."

"Ya, that's what we thought.  Thanks for the free loan, suckers.  Now we're rich and famous but you get jack."

I vote to cancel and buy an early KnC Jupiter pre-order.  We have enough Avalons now and they are shady.

[davos]

Avalon is taking the BFL route of coerced refunds, great.  

"Accept our flexible definition of 'two weeks = Soon' or take back the money you lent us with no interest."

"Ya, that's what we thought.  Thanks for the free loan, suckers.  Now we're rich and famous but you get jack."

I vote to cancel and buy an early KnC Jupiter pre-order.  We have enough Avalons now and they are shady.

I can't see how swapping a pre-order from a company that actually has delivered and may do so again soon (for all anyone knows) for one that is guaranteed not to deliver for quite a while yet and hasn't delivered anything so far is a good plan.

If creativex were to get a refund from Avalon, I'd rather see that capital deployed towards in-hand equipment.

[creativex]

I've no intention of cancelling our order. We've waited this long, the unit should easily surpass 100Gh and it's cost the company 101.xx. It's still a bargain to my mind, *IF* Avalon does indeed get them out the door very soon.

Cheers.

[lunarboy]

Avalon is taking the BFL route of coerced refunds, great.  

"Accept our flexible definition of 'two weeks = Soon' or take back the money you lent us with no interest."

"Ya, that's what we thought.  Thanks for the free loan, suckers.  Now we're rich and famous but you get jack."

I vote to cancel and buy an early KnC Jupiter pre-order.  We have enough Avalons now and they are shady.

that is a terrible idea. !

although trying to get in on KnC early would be nice. Just not by hastily cancelling anything.

[creativex]

Avalon is taking the BFL route of coerced refunds, great.  

"Accept our flexible definition of 'two weeks = Soon' or take back the money you lent us with no interest."

"Ya, that's what we thought.  Thanks for the free loan, suckers.  Now we're rich and famous but you get jack."

I vote to cancel and buy an early KnC Jupiter pre-order.  We have enough Avalons now and they are shady.

that is a terrible idea. !

although trying to get in on KnC early would be nice. Just not by hastily cancelling anything.

Agreed. The history of all of these companies is delay, delay, delay. The odds of everything going rosy for knc is low IMO. While Avalon has had issues ramping up production they're very plainly shipping in volume. If they make a smooth transition to shipping batch 3, then we should have our 4 module rig within a couple weeks. Anything from knc would take months to begin hashing for us...best case scenario.

Cheers.

[davos]

As Avalon is likely going to fully move away from OEM after this batch it might be worth looking into OEM hardware with the Avalon chips. Between Terrahash and some other products coming online we'll probably need to expand rapidly to keep up - at least until we get some amount of saturation and difficulty becomes more incremental.

BTC0.02

[Youngbill]

Creativex,

I'm fairly new to the Bitcoin world but see the value in your company. What is the best way to buy shares?

Thank you,
Bill

[iCEBREAKER]

OK, OK.  I was just playing devil's advocate to get the discussion going.

Besides, it looks like Avalon's handling of refunds is even less timely, responsive, and transparent than their hardware division.  People have been waiting 20 days with no confirmation much less refunds.   

[Streets 2.0]

Creativex,

I'm fairly new to the Bitcoin world but see the value in your company. What is the best way to buy shares?

Thank you,
Bill

Btct.co - great site and there are other securities there as well that you can invest in.  Also there is Bitfunder and Havelock for investments

[creativex]

Creativex,

I'm fairly new to the Bitcoin world but see the value in your company. What is the best way to buy shares?

Thank you,
Bill

Hi Bill. As was suggested btct.co is where virtual shares are traded. Here's a direct link.

https://btct.co/security/BASIC-MINING

Cheers.

[creativex]

As Avalon is likely going to fully move away from OEM after this batch it might be worth looking into OEM hardware with the Avalon chips. Between Terrahash and some other products coming online we'll probably need to expand rapidly to keep up - at least until we get some amount of saturation and difficulty becomes more incremental.

BTC0.02

Hi davos. I have some plans in the works that should allow us to at the very least keep up with difficulty increases. More to follow.

Cheers.