QPN 27.3% 0.8¢ quest petroleum nl

It's clear that you and Reichman don't have a grasp on Market...

  1. 1,975 Posts.
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    It's clear that you and Reichman don't have a grasp on Market Cap.
    Reichmans article was well written but still shows a lack of understanding.
    He doesn't have any shares so its less of an issue for him.
    No need to waffle on too much on the subject as it is fairly basic.
    Share price is just that a share of the price of the Market Cap. Unlike what has been stated it is a measure of the value of the company and divide this by the number of shares and you arrive at the share price.
    If QPN finds one TCF of gas my estimates are this should add around $200m to the MC. The only way you will find out how this translates into shares is divide the MC by the current shares. More shares less share price. Simple. The market will move the Market Cap up and down through share trading due to the value it puts on the Company
    I'm surprised so few posters have made comment. Maybe it's an issue that's not understood on a wider scale.
    There are plenty of books excellent books available on the subject and a quick google search should help as well.
    Good Luck
 
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