RE:RE:NEWSRedearth Great Points
i couldn’t agree more, the market is surprisingly usually right.
Market Cap is a combination of many factors that are weighted differently in different sectors, notably:
1. IP
2. Assets
3. Current Revenue
4. Industry and potential Industry Growth
5. Forecasted and Potential Blue Sky Revenue Growth
and you are right the farther an industry or stock swings form a current revenue market evaluation model the higher the risk. But investing is always finding a risk/reward balance. With increased risk comes the potential of exponential market cap growth.