>> How close can Microsoft's market cap get to reaching the Gross National Product before it isn't a screaming buy?
I've had concerns in that area myself, Grant, since Mr. Softee was a little guy at a cap of 200B, but I finally convinced myself that the number means nothing. What does it measure? Total number of shares in float times current market price? But many of those shares are so tightly held that they really don't belong in the equation, and if they went on the market, the price of the stock would plummet faster than a Nolan Ryan sinker. Market cap is a wet finger, a gross measure of how the market regards a company, a way of dividing companies into small cap, mid cap, large cap categories. What I look at is revenue growth, earnings growth, market share trends, etc.
Maybe a valuation junkie like Mike Buckley will give you a quantitative response, but for my money, market cap is not a meaningful metric.
Frank |
