Posted On: 09/04/2014 12:55:30 PM
Post# of 5949
Re: LaorgeMONEY #4518
Reducing the O/S and A/S decreases the multiple for the Market Cap,
meaning a lower multiple x the O/S = a higher pps value ratio!
Example:
O/S x pps = MCap
30,000,000,000 x .0006 = $18,000,000
28,500,000,000 x .0006 = $17,100,000
3,294,206,740 x .0006 = $1,976,524
A higher MCap, means the stock becomes overpriced the higher the pps becomes so we want the O/S to be lowered, much, much lower.
meaning a lower multiple x the O/S = a higher pps value ratio!
Example:
O/S x pps = MCap
30,000,000,000 x .0006 = $18,000,000
28,500,000,000 x .0006 = $17,100,000
3,294,206,740 x .0006 = $1,976,524
A higher MCap, means the stock becomes overpriced the higher the pps becomes so we want the O/S to be lowered, much, much lower.
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