Thanks for the lengthy reply Names and summary of wealth...

First 66 Last

Share
Profile

Follow
Matt72

1,659 Posts.

53

25/05/19

11:02

Post #: 38740986
Share

Originally posted by Names little: ↑

Hi Gumboots, welcome back, it's been lonely without you.

In regards to Market cap, when looking at it from a wealth destruction perspective the appropriate measure to use is a variation of the fully diluted Market cap. As you are no doubt aware fully diluted market cap includes all shares and all other securities that can be converted to shares, eg warrants, options etc., however to look at what wealth has been destroyed there is an arguement to exclude those options that were out of the money anyway, as likely no real wealth existed for those holding those assets

So if one genuinely wants to see what wealth has been destroyed (as opposed to arguing over semantics of definitions) then the correct measure of Market cap to use would include all those in the money options.

So how high did MNS market cap get on this basis, well in June 2016 the SP reached 1.12 and based on Appendix 3b of 3/6/16 there were 398m shares on issue plus 146.7m well in the money listed options (I haven't included the approx 17m unlisted options as couldn't be bothered checking if they were in the money or not, but they probably were) . So a conservative total of 544.7m @1.12 gives me a market cap on this basis of $610m. Perhaps there are other periods when it was higher, but likely not.

So if you truely want to look at the wealth destruction that has occurred then you simply now need to compare that to the current market cap calculated on the same basis, which should be quite easy as I doubt there are too many in the money options to worry about. I think when you do this calculation you will find it's a quite staggering amount of money, in the difference that is, the market cap certainly is no longer staggering.

Once you know the real figure of wealth destruction you can then begin your analysis of what has caused it, which I will be very interested to hear your thoughts on, likely many factors in the equation.

So Anf0 figures you seem worried about not that far off, seem a bit closer than your figures in my humble opinion, let the analysis now begin on what has caused the staggering wealth destruction.

All in my very humble opinion as always.

All the best

Expand

Thanks for the lengthy reply Names and summary of wealth destruction!

Reminds me of our discussions on the TON Forum back in the day Names.

But in summary the Market Cap for Magnis reached $400 Million......no higher.
You don't include Options which funnily enough were ridiculed by posters back in the day as being worthless.
Funny how they are suddenly worthwhile in structuring a slanted argument!

Last edited by Matt72: 25/05/19

MNS Price at posting: 20.5¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

Reply