Financial Adviser Ronnie...
You just can’t give this topic a rest can you! Rather repetitive you are with this topic.
Just so you know, the simple Market Cap/Rev ratio has been around forever. You haven’t just found the magic formula to create wealth!! Most people call it a P/S ratio. But I’m sure you knew that.
The issue with a P/S ratio in speculative small caps, is it won’t tell you which company will turn a profit first. That is what we are looking for, a companies potential to generate future profits.
It completely neglects future growth potential, the all important management team, debt levels, product scalability etc, just to name a few things... It can also lead you into false illusions, where you think poorly run companies with low trading volume are a safe place to park your money!
Trying to pull out simple formulas in the speculative space is almost plain stupid.
But I guess since “it’s all over” and you’ve sold out, not an issue.
