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Toxic Avenger

02/19/09 4:35 PM

#30752 RE: sneaky_peaky #30751

Of course they can. Look at PCYC - $355 million invested, market cap $15 mill. GM, $15 billion invested, market cap $1.2 bill.
I think you'd be hard pressed to find a company that has never been profitable with a market cap greater than its paid-in capital. Certainly they exist, but that's not the norm.
Once a company has been in business for a while, there's very little relationship between paid-in capital and market cap. Stock price (market cap) all depends on past performance and future expectations. GOOG for example only has $13 billion invested, and its market cap is over $100 billion.