Praxsyn Corp (PXYN)

[tutankhamen]

Again, assuming any market cares about fundamentals, the market cap vs. revenue ratio should be about 1.1. Given that we expect revs to come in around $115M for 2014...this ratio would say the stock should be 4x higher or $0.50 per share. Earnings may say significantly higher...Only thing holding us back as noted is disconnect with ticker and confirm on revs. This is one that will take care of itself and if you saw the posting on Dan's bio, he knows how to market a company. Not worried here.


A disconnect between subjective valuation and tangible performance exists when total market capitalization rises or falls at a rate disproportionate to total revenue.

A cap-to-rev ratio greater than 1 indicates total market capitalization has grown at an inflated rate not supported by total revenues. A cap-to-rev ratio less than 1 indicates total market capitalization is lagging behind the total revenues of the market.

Between 1979 and 2008, the cap-to-rev-ratio averaged 1.12. The ratio is 1.05 when calculating index data back to 1968.

Data supports the assertion that market forces are constantly seeking a natural equilibrium between total market capitalization and total revenue. Investors that can identify the points where a market has strayed too far below 1 can buy the market before total market capitalization catches up to total revenue, and vice versa.