DOM with its market capitalization of about $265 million
MCO with its market capitlaization of about $16 million
then ask yourself why this huge difference?
my answer: the market is risk averse and does not believe that MCO will be a profitable producer, or MCO is seen as an explorer, or MCO is placed in the category of "highly speculative"
Well you imply that the market's judgement is wrong and that the difference in market capitalisations should not be great. Then you give a perfectly good set of reasons why the market should value DOM much higher than MCO.
It's a completely fanciful comparison, and about as good as when you were saying that its didn't make any sense that HEG was valued higher than MCO. I think you implied the same about CTO.
They're all producers that you're comparing MCO to robertkna. Producers with enough cash and/or cashflow behind them to progress their operations.
Here's DOM's return on equity for the last 3 years: 69.6%, 37.4%, 30.0% A beautiful set of numbers n'est pas? Here's Morning Star's ROE: -124.3%, -32.3%, -165.6% Yuck hey? Oh that's right MCO is an explorer. It's just silly things like that, and that it's riskier, and highly speculative that the market's factoring into price. Why would the market pay a lot more for a company that has paid 3 consecutive years of dividends compared to uninterrupted cash burn?
MCO Price at posting:
13.4¢ Sentiment: Hold Disclosure: Held
