Market cap is about $220M. Take from Spanish warship is estimated to be $500M. Other discoveries add even more potential booty. My question is why is market cap so low? Seems like if this is a shareholder friendly company, then potential value of a share of all these discoveries should be five or ten times current share price. Where am I wrong?
Excellent point. The $500million is tied up in court, and even if it is released, the net to the company after trying to market the goods will be much less, based on their track record. Also, the company has not demonstrated it can make a profit and reward shareholders, after all these years and discoveries. Most of us are betting that will happen but it is taking a long time, and other opportunities are presenting themselves in today's unusual market. It is neither all good nor bad news here, it is wait and see if you have the time. I do think more discoveries are going to be announced, so traders should continue to have opportunities as well.
First and foremost, you assume you will get share of any finds. Not true, shareholders usually only get a share of the profits in the form of dividends proportional to their investment (not $'s, but shares). The market cap is nothing more than what people think a company is worth, could, or will be worth- - - number of shares times share price.
I'm a newbie yesterday and the more i read the less i like.
Some of management quotes make me feel like my investment is more a contibution to a nonprofit then a for profit company. Don't get me wrong I contribute to PBS every year and I know it's a worthwhile contribution whereas this feels more like a scam nonprofit.