You know… I was thinking today that MTO is not one of my best performers… yet I enjoy blogging on this site. It’s sort of a reflection on how the market works.
Cash is king no doubt, but how much effect does it have on a share price?
Microsoft… tonnes of cash but can’t seem to break out to new highs. Amazon is trading at an insane P/E and the market seems o.k. with it.
There are many explore companies that are trading at a much higher relative value and they will never produce an ounce. There are companies out there that literally make a living off going to the market and the SP for some of them is still climbing!
There are many things that can govern the SP… cash on hand (or on the books) is just one of them… albeit an important one.