MNS 0.00% 4.2¢ magnis energy technologies ltd

Ann: Completes Investment in US Battery Technology Group C4V, page-45

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  1. 1,124 Posts.
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    "why has mns got such a high market cap."

    @Capraise, I get the feeling you're used to investing in minnow stocks, not company's with world class boards that are across multiple sectors.

    Anyway, getting back to your confusion and distress. I thought it was a such a basic and well known theory that anyone investing in the stock market would have heard of it... Efficient Market Hypothesis (EMH):

    "EMH is an investment theory whereby share prices reflect all information... According to the EMH, stocks always trade at their fair value on stock exchanges"(1)

    This time proven theory indicates that the gap between what you think a company is worth, and what it's SP says it's currently worth, is the gap or blind spot in your understanding of the stocks fair value i.e. Magnis currently has a MC of $214m, but if you think it's only worth $21.4m, the problem is yours in that you only comprehend 10% of the stocks value.

    I would suggest a lot more research so that you may come understand what the market knows about Magnis that you are not currently aware. Alternatively, choose simpler stocks to try to comprehend and value... this would also go for @SteveSage who has continually voiced his distress at not being able to understand anything above Magnis' mining arm.

    Best of luck to you both.


    1. https://www.investopedia.com/terms/e/efficientmarkethypothesis.asp
    Last edited by Riskon22: 16/09/18
 
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