1812 Brewing Company Inc (KEGS)

[Ace Magoo]

That wasn’t my opinion, that is how Market Capitalization is calculated in practice.

I personally think there is a lot of ambiguity in calculating the outstanding shares when applying it to market cap. Are the Series B preferred shares part of the outstanding when calculating market cap or not? The area gets very grey. So in practice, in the real world, how is it applied?

Look at Reuters, Yahoo and even the detailed quote on IHUB for your answer. Look at the shares listed (I know 448.24m is off, but it is also obvious that they are using outstanding common stock, not the Series B stock). Multiple 448,240,000 times .0257 and you get 11,519,768. Now look at Markey Cap, it is 11.52m.

Now go through 8-K’s of other companies and look at their common and preferred stocks as reported. Go to Reuters, Yahoo or IHUB and look at the share numbers listed, market cap and closing share price.

If you are going to use market cap as a comparative tool than it must be applied consistently. You need to compare apples to apples, not oranges.

This ambiguity is helping create the wild swings I believe. One day (week, month, etc.) the stock is beaten down by looking at capitalization one way and then takes off when looking at the capitalization another way.

I may agree that market cap should be all shares regardless of their status but to use that as a comparative tool you must throw out the market cap calculations for all stocks as reported, go through their 8-K’s and calculate all shares and multiply by their closing price to compare a level playing field. If not using it as a comparative tool, what are you using for? What good is it? Is stock A’s MC undervalued or overvalued when compared to stock B’s and assets, earning per share, growth potential, etc…

Note: I believe the TA’s report of the current outstanding is the common and the Series C that has been/will be converted, and outstanding is how market cap is calculated.


http://investorshub.advfn.com/boards/quotes.asp?ticker=SWVC

http://www.stocktradingtogo.com/2007/05/02/understanding-market-capitalization/

http://stocks.us.reuters.com/stocks/overview.asp?country=US&ticker=SWVC.OB&symbol=SWVC.OB&mxid=100075820&coname=Seaway+Valley+Capital+Corp&cotype=1