0.5/share values S.DICE at 50 million bitcoin - by my simplistic fundamental analysis that is impossible.
0.05/share values it at 5 million bitcoin - still way too high in my opinion.
I can see it reaching maybe 0.01/share but I think that is too risky too. I think the one of the risks is that if the last two months profits are due to a small number of whales then they won't be able to afford to keep losing ~20k btc per month for long and then profits will decline. I could be wrong, maybe the whales are more numerous than I imagine, maybe they are some high rollers playing by proxy from Macau or something.
Normally I charge for advice like this but I'm pretty stocked up on S.DICE now, so I'll take my fee as talking my own book.
Profits are up 100% since inception. If we conservatively assume profit of 100kBTC in 2013, then over 100,000,000 shares, that is a profit of 0.001 per share. If this represents an acceptable 1% a month in profit, at a 5x P/E (as per S.DICE financial statements) we are looking at a price of 0.5/share.
Now, why it is worth more. It is worth more because it is worth less
now. This is a difficult concept for new or inexperienced investors to grasp, but how markets work is to buy up underpriced shares and then continue buying so that the average price represents what they feel the investment was originally worth, and then to start taking profits.
So conceivably S.DICE will hit around .8/share then fall back down to .5. That is what the gross price action will look like. My ETA on this is another 1-2 years.
