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biosectinvestor

08/04/22 10:18 AM

#501088 RE: LearningEveryTrade #501086

You understand that market cap is price x shares issued and outstanding?

What that means is market cap goes up, if price stays the same and shares are issued. That is not the way to measure shareholder’s outcome.

So while it is useful in measuring two companies against each other because it is neutral as to dilution, for that particular measure, for your stock performance and performance as an investment it’s not the right measure because dilution, while necessary for a company at this stage, does typically reduce immediate return. It still can be necessary to build and maintain value, and or course fluctuations in value do not mean that shareholder value intangibly has not been substantially increased. Such fluctuations can reflect changes in market conditions like increases in interest rates and the perceptions of risk versus more certain returns in treasuries, overall, e.g macroeconomic conditions that affect all companies, hence in my charts the inclusion of the XBI index as a comparison and measuring tool.

Basin Street Blues

08/04/22 10:35 AM

#501101 RE: LearningEveryTrade #501086

....here ya go 5 year M/C