Thanks for the share @mukiri

I'm sure this how banks/creditors lost money lending to Nakumatt relying on EPS, cash growth projections, growth forecasts. Projections, models, ratios and other math algos mean nothing. Prices are nothing but signals to you the owner of capital 'deal or no deal'. You just have to feel the rhythm of market.

I was illustrating how those tools can sometimes not be useful. The use of models has messed up price signals in post QE world. E.g. banks(not necessarily local banks) are not marking their assets on the books to markets instead they mark to models. So the bank will lend to nakumatt on the model of the future financials. In the market nakumatt may be worth nothing but the bank still may keep marking to model. Bank may report to you a profit with nothing to back it up, that's why your first hand knowledge of the market is more useful. That's how most of the debt in the world is nowadays operating. In a world of derivatives it's all smoke and mirrors. Same applies to cryptos.

Models break down as Long-Term Capital Management learnt the hard way.

This market is crazy. Insane swings. 3 days later and the portfolio is already up 14%. I wouldn't be surprised to check after another three days only to find 50% gone. It is extremely volatile.

Is Bitcoin being pumped. Billion dollars within a few hours...?! Out of nowhere..?!
11% Gain in 24 hours