PNV, page-70

Hope we don't get into a long winded discussion again, but you seem to have some phobia against people mentioning the word market cap.

Nobody disagrees that market cap is driven by share price but it is also driven by number of shares on issue.

Share price on its own is a pretty meaningless number to compare or predict the size of a company whereas market cap is definitely the right measure to look at the size of a company.

For example IOOF holdings has a share price of $8.75 whereas Telstra has a share price of $2.77, but Telstra is ten times the size.

If the number of shares on issue stays the same, then yes you are correct the market cap is a function of the share price.

However, looking at a share price alone does not give any idea as to the size of a company.

The best metric to compare how big a company is to its peers is Market Cap and thats why Hot Copper thinks it is such an important metric they post it in the top right hand corner of every post on a company.

Respectfully yours.
BoroBoy