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Re: DCorleone post# 9932

Tuesday, 08/09/2016 5:52:02 PM

Tuesday, August 09, 2016 5:52:02 PM

Post# of 20122
For those who are unaware of the question posed...

Market capital (Cap) is the value investors place on the company. It has nothing to do with selling the goods or service the company is in. Therefore, the accompanying statement regarding how the market cap helps sell a company's produce or service is moot...the two have no relationship to each other at all.

Market Cap of R&D companies, in some small way, does reflect the hope and potential that investors see in the future of the company. The PPS of such a company can be misleading due to the factor that PPS alone does NOT reflect the number of shares outstanding. For example, a company may be selling at $1/share with only 5 million shares issued and outstanding....While another company may be selling at $.05/share with 200 million shares issued and outstanding. Though company #1 has a higher PPS...of $1...than company #2...of $.05...Investors see company #2 as a better investment because its (company #2) market cap is twice that of company #1.

So don't be mislead by PPS alone.

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