Dec. 24 at 5:45 PM
$STEX Who can help resolve this share count discrepancy? I understand that the total number of shares has always been disclosed in filings, and that the 109m shares related to the acquisition are not new. However, until recently, most financial websites appeared to be using only a subset of the total shares outstanding (approximately 40m) when calculating market capitalization. On that basis, at a
$4 share price, the market cap was roughly
$160M.
This lower share count is also referenced in the recent Needham report (40.07m shares at
$4.16 —> market cap of 166.7m). Their
$12 price target thus implies a
$481M market cap target.
If the correct and fully diluted share count is much higher (even if it always has been), then the company’s current market cap already appears to be around
$490M (!), effectively exceeding the future Needham target today.
How could such a price target have been set using an apparently incorrect share count?
