Twinvest,Thank you for creating the index of this small end of...

Twinvest,

Thank you for creating the index of this small end of biotech sector. I appreciate your time and research on this sector especially on ADO. I would like to draw your attention to my humble proposal below.

Your index is comparing the changes in the Market Cap (MC) to the previous day only and will not give us any indication where we will be standing on compared to today after some months or year/s unless you prepare the index with a base line.

For example MC on 4 October 2012 (I assume yesterday in your spread sheet is meaning 4 October, 2012) can be a good base line as it was very close to 5 billion. If you consider it as 100 then index value would be 100 on 4 October 2012. You then calculate the index on 5 October 2012 as = 100* 5,020,390,260/5,000,784,346 = 100.39 and change in index for that day compared to previous day is = ((100.39-100)/100)*100 = 0.39%, Similarly, for 8 October say MC stands at 5,070,390,260 then the index would be = 100.39(index of previous day)*5,070,390,260 (Today’ MC)/5,020,390,260 (MC of previous day) = 101.39 and change of index from previous day would be 1%. And so on.

A brief table below is showing how it will progress over time. At the end of 11 October index will be 103.59 that will mean index or MC has increased by 3.59% from 4 October 2012.

Date MC Indices Changes of indices from previous days
4/10/2012 5,000,784,346 100.00
5/10/2012 5,020,390,260 100.39 0.39%
8/10/2012 5,070,390,260 101.39 1.00%
9/10/2012 5,040,390,260 100.79 -0.59%
10/10/2012 5,110,390,260 102.19 1.39%
11/10/2012 5,180,390,260 103.59 1.37%

I can see in the preview that the table is not displaying appropriately, however the intended message is extractable from that.

Thaks