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To: Skeeter Bug who wrote (5731)	6/12/1998 8:10:00 AM
From: Alexander Pavlov	Read Replies (1) \| Respond to of 164684

<< market cap = number of shares outstanding (float and non float) * share price. the increase was more than $500 million. you may be thinking of something else when you multiply the float times the share price change to but it isn't the change in market cap. >> Thanks for definition of market cap :o) My point was about market cap vs. market valuation. And mechanical increase in market cap does not always mean increase in market valuation, i.e. the price one will agree to pay for the company. To bring this to extreme: Shares Outstanding: 100 mil Float: 1 mil Market price: $1 Now picture I am a CEO holding 99 mil shares of the above company. Being given $1 mil to use for open market speculation how high could I push shares price? $5, $10? Let's be conservative, just $2. Market cap surely will be $200 mil. But would you agree my net worth will be $198 mil after that? And if yes, would you lend me money using my shares as collateral? :o) Just a bit upset with an amount of attention paid to market cap of a company with a small float... Kind regards, Alex