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Microcap & Penny Stocks : TIGI : Building Innovative Marketing Relationships

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To: ztect who wrote (44)1/28/2000 9:08:00 PM
From: ztect   of 177
 
(gba/art) Market Capitalization: Does Anyone Care?

The market is giving incredible market values (market caps)
to so many companies that stock valuation seems no longer
to be based on such criteria.

There is a great graphic on the front of the 12/26/99
Sunday's "New York Times" business page.

The short story accompanying that graphic is by Gretchen Morgenson

"A Company Worth More Than Spain?"

"Crazy markets call for wacky stock valuation methods.
Forget price-to-sales ratios; why not rank stocks based on
the gross domestic products of world nations?

G.D.P., to be sure, is the yearly output of good and
services of a country, while market value, a company's total
worth, change daily. Moreover, G.D.P. cannot capture all
that is generated in the information age.

But with stocks so high, it is a telling exercise. 'These
stocks have become like major land masses,'...."


The graphic is a map of the continents with the market
values or capitalizations of companies compared to the
G.D.P's of specific nations.

Here is a list of some of those comparisons:
(mc= market cap, gdp= gross domestic product)

mc Jupiter Networks & gdp Cuba = $16 billion

mc Microsoft & gdp Spain = $593 billion

mc Merck & gdp Ukraine = $161 billion

mc Lucent Tech. & gdp South Africa = $227 billion

mc Phone.com & gdp Jamaica = $8 billion

mc Intel & gdp Poland = $246 billion

mc Cisco Systems & gdp Iran = $344 billion

mc Hewlett-Packard & gdp Greece = $107 billion

mc Sycamore Networks & gdp Tanzania = $19 billion

mc Wal-Mart & gdp Argentina = $296 billion

====================
Now tsig sure ain't like any one of the companies
in these above comparisons

But tsig, even with 238 mil shares OS doesn't
have a billion dollar market cap.

With stock prices based more on potential
and "valued on vision", tsig can justify
its current market cap simply since the rest of
market is even more irrational.

JMHO

z
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