KNL MCAP - Diagram of Progress

Hi,

In my experience there are investors who lack the sophistication to understand the dynamic between share price and market capitalisation.

Market capitalisation is far more important than share price because it reflects the market's valuation of a company. From this perspective, share price is merely a function of the market capitalisation and the number of shares on issue.

So, to aid in the understanding of those of you out there who require assistance in this field, I have prepared an Excel spreadsheet that includes the data from the 3B announcements since KNL's first graphite announcement in 2012. I have not included options because KNL doesn't really have all that many to bother with.

I have also added the standard trendline from Excel.

As is flagrantly obvious, the market believes KNL is becoming more valuable as time goes on. You will also note the time when speculation in the graphite market was rife - yet the value growth just reverts back to the mean trendline heading upwards.

Enjoy.



PS - try this on your own favourite stock and see how you go, some will be happy and others will be sadly disappointed.