Sunday, December 15, 2013

Market Cap Reveals Size of a Co; Share Price alone is Incomplete

Apple (AAPL) $500 billion market cap at $555.00/share
Amazon (AMZN) $176 billion market cap at $385.00/share (BIDU) $60 billion market cap at $172.00/share
Exxon Mobil (XOM) $433 billion market cap at $99.00/share
Facebook (FB) $130 billion market cap at $53.00/share
Google (GOOG) $354 billion market cap at $1,060.00/share
LinkedIn (LNKD) $27 billion market cap at $229.00/share
Netflix (NFLX) $22 billion market cap at $375.00/share (PCLN) $60 billion market cap at $1,170.00/share
Twitter (TWTR) $38 billion market cap at $70.00/share
Yahoo! (YHOO) $41 billion market cap at $41.00/share

Market capitalization is calculated by multiplying a co’s total shares outstanding X stock price. Stock price alone does not give us any insight to the size of a co unless we know and factor the total # of shares outstanding. 

LNKD at $229.00/share is not worth more than FB at $53.00/share on a market cap basis since FB has a whopping 2.45 billion shares outstanding vs LNKD's 119 million sharesOnly after we factor in shares outstanding can we begin to grasp the true size of a specific co/stock.  

Current market cap classifications:

Mega Cap - market cap of $200 billion and above.
Big Cap - $10 billion - $199.99 billion.  
Mid Cap - $2 billion - $9.99 billion. 
Small Cap - $300 million to $1.99 billion. 
Micro Cap - $50 million to $299.99 million. 
Nano Cap - Under $50 million. 

LNKD and FB are both Big caps but the difference in size, $27 billion vs $130 billion, is hugeAAPL, XOMand GOOG sport Mega caps while AMZN needs to climb $53.00/share to $438.00 in order to graduate from Big to Mega cap. AMZN has 458 million shares outstanding.

Thank you for Reading and Educating


Monday, November 25, 2013

Chinese Qihoo 360 (QIHU) Delivers Excellent Results, Again...

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People’s Republic of China. Its core Internet security products include 360 Safe Guard, a solution for Internet security and system optimization; 360 Anti-Virus, an anti-virus application that uses multiple scan engines to protect users’ computers against various kinds of malware, as well as 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company’s platform products comprise 360 Safe Browser and 360 Speed Browser, which are based on dual-core technologies providing secure browsing and blocking malicious Websites, indentifying them among search results, scanning files downloaded through the browser for security threats, as well as 360 Mobile Browser for the iOS and Android operating systems. The 360 browsers also consist of 360 Personal Start-up Page, which serves as user’s start-up page aggregating preferred Web services and applications; 360 Search, a search engine; and 360 Mobile Assistant, which allows users to browse, search, and obtain various mobile applications for mobile devices. Qihoo 360 Technology Co. Ltd. also provides online advertising services, including online marketing services and search referral services; and Internet value-added services comprising the operation of Web games developed by third-parties, remote technical support, and cloud-based services. The company was formerly known as Qihoo Technology Company Limited and changed its name to Qihoo 360 Technology Co. Ltd. in December 2010. Qihoo 360 Technology Co. Ltd. was founded in 2005 and is based in Beijing, China.
-Total smartphone users of 360 Mobile Safe, Qihoo 360's primary 
mobile security product, reached a record 408 million in Sept, 
2013, compared to 149 million in Sept, 2012. 
-Monthly active users of Qihoo 360's browsers reached a record 
342 million in Sept, 2013, compared to 303 million in Sept, 2012. 
-User penetration of Qihoo 360's browsers was 69% in September 
2013, compared to 65% in September 2012. 

Chart forQihoo 360 Technology Co. Ltd. (QIHU)


Saturday, November 9, 2013

With New Study, Scientists Try To Drag Drug Trials Into DNA Age

This morning at a meeting in Washington, D.C., researchers from the academia, the Food and Drug Administration, the National Cancer Institute, a leading patient advocacy group and several drug companies are describing a new clinical trial in lung cancer that could fundamentally change the way cancer drugs are studied and approved, speeding medicines that target specific genetic mutations in cancer toward the market and patients.
The study, dubbed “The Master Protocol,” aims to solve a fundamental problem of cancer research in the genomic age. Any one mutation that causes can be extremely rare, affecting perhaps one in 30 or even one in 100 patients. That makes studying a drug to hit that mutation incredibly tough. Sometimes hitting one mutation with one drug may not be enough, meaning that the patient whose cancer could be treated with a drug combination would be even rare.

The situation is “untenable,” says Richard Pazdur, director of the Office of Hematology and Oncology Products in the FDA’s Center for Drug Evaluation and Research. “Especially with personalized medicine we’re going to be seeing smaller patient numbers and its going to be hard for clinical trials to have access to patients even if they go worldwide.”
The Master Protocol offers a solution. The idea here is to have one over-arching plan (scientists call this a ‘protocol’) for studying lots of drugs. Instead of using one genetic test for each drug, they will use high-throughput DNA sequencing to scan tumors for 16 different genetic abnormalities that might be treated by as many as two dozen different drugs. Then patients will be put into separate studies for each new drug. Those for whom DNA sequencing doesn’t turn up a potential medicine will get a new type of immune system drug, known as a PD-1 or PDL1 inhibitor.
“It changes the idea of one test one drug,” says Roy Herbst, Chief of Medical Oncology, at Yale Cancer Center and the trial’s lead investigator. “That is the future, actually it is the present, it is just the way it has to be done.”
The study will not focus on all cancers, but on squamous cell lung cancer, a form that has proved particularly difficult to treat. 
AmgenAstraZeneca, and AstraZeneca’s MedImmune division have already signed on to provide drugs to the study. If they’re smart, other companies like Merck , Pfizer, and Bristol-Myers Squibb will follow. Other studies have tried to examine multiple drugs at once, but this will be the first one aimed at getting the effective FDA approval.
That the FDA, NCI, and drug companies could all work together is in part because of the efforts of patient advocacy group Friends of Cancer Research and its charismatic leader, Ellen Sigal. She heard the idea discussed at a meeting her group runs with the Brookings Institution in D.C., and pushed for it. She personally called Herbst to help secure his involvement.
“It’s important for patients,” Sigal says. “They’re going to get state of the art treatment and they’ll get a better result. If you want to get to the bottom line, this is something patients can’t get on a one-off.” Says Pazdur: “This would not have proceeded without her.”
This trial could also be good new for Foundation Medicine, a startup focusing on cancer genetics that was backed by Google Ventures and Bill Gates and that recently raised $106 million in an initial public offering. Foundation was picked through a competitive bidding process to do the DNA sequencing for this study – a stamp of approval for the sequencing test it already markets to oncologists and patients and which delivered 2,577 patients in the most recent quarter. It also seems possible that the study results could help Foundation convince insurers and Medicare to pay for its test, which has a list price of $5,800. Right now Foundation is talking to Medicare and planning to start submitting bills to the agency by the end of the year.
“It’s really a catch-up to the genomic information that we’re providing to docs that is difficult to act on,” says Vincent Miller, a top oncologist who is now Foundation’s chief medical officer. “It’s not a theoretical exercise.”
The Psychology of the Call team (POTC) gives all credit and thanks Matthew Herper of Forbes for writing this exciting and timely investment piece.
Matthew Herper
Matthew Herper, Forbes Staff
I cover science and medicine, and believe this is biology's century.

Sunday, November 3, 2013

Capitalist Pig Bob's brief History of U.S. Govt's Policy Failures; Affordable Care Act (ACA) under Fire~

After almost every single big Govt program has contributed to the burgeoning National Debt, why would any sane person think that the Govt will get it right with the ACA? Here's a list of failed Govt programs:

  • Social Security established in 1935 (79 years), President FDR (King Donk). A big Govt subsidized program that continues to add to the National Debt and goes unaddressed. 
  • Medicare and Medicaid established in 1965 (49 years), President LBJ (Donk). Another deficit Govt program that goes unaddressed as the Donks layer the ACA?   
  • Fannie Mae established in 1938 (76 years), President FDR (King Donk). Took a $117B bailout and still owes about $20B. Some positive signs butt with a hitch.
  • Freddie Mac established in 1970 (44 years), President Nixon (RINO - republican in name only). Together with Fannie they were partly responsible for the worst economic collapse and stagnation. These Govt Sponsored Enterprises (GSE) led us to 0% Interest Rate Policies and more. Who knows how much more diversity is on the Fed's balance sheet besides Treasuries. Are you okay with a private enterprise immune from being audited?
  • War on Drugs began in the 60's and it is a failure, President Nixon again (RINO). Here's the brilliant Dr. Milton Friedman on a solution to the drug problem.
  • 'O' (Super freak Donk) committed $831 billion to the American Recovery and Reinvestment Act of 2009. This near $1 trillion was the beginning of the $5 trillion 'O' has added to the National Debt and continues to argue for raising the debt-ceiling. Butt here 'O' called debt 'unpatriotic' and voted against raising the debt-ceiling in 2006. Hypocrisy, ignorance, amnesia, or just expected from a south side Chicago precinct captain with no private sector business experience? I think it's a combination, even the liberal NBC is finally 'getting it.'
  • Cash for Clunkers established in 2009, President 'O' went broke in 2009. 80% of the cars purchased turned out to be produced by foreign cos; car dealers were buried with paperwork demanded by a Govt that did not pay them what was initially promised.
  • No Child Left Behind Act of 2001, President 'W' (RINO), program costs about $55 billion per year while the U.S. ranks 17th in Education versus the modern world.
  • Department of Energy (DOE) established in 1977, President Carter (Donk). Has a $30 billion budget and couldn't avert the BP spill and does more harm than good by levying fines and hence raising costs, prices of gas and other fossil fuels. Latest heads of of DOE under 'O' have refused to lift restrictions on international coal shipping, stymied the Keystone pipeline and push for green energy like Solar instead of Natural-gas.  
  • Fair Housing Act established 1968, President LBJ (Donk): The Govt instructed Banks to issue Subprime Mortgages to minorities regardless of their credit; partly responsible for 841,073 foreclosures in 2012 as Govt forced the hand of what should be Darwinian Capitalism that embraces private sector cos burn (go BK) that make bad investments and reap profits from good.
  • Federal Reserve Bank created on December 23, 1913, President Wilson (Donk). Fed is broke and should be audited like any private sector business, fair? I personally think the Fed played a major role in buying S&P futures beginning in October, 2010, when QE was announced. I recall a couple men that looked to be in their mid 70s on the NYSE floor scratching their heads -CNBC- as the Dow kept rallying right before close and then the overnight futures session rarely faltered .. this pattern is able to be verified by back testing the charts. As for the NYSE men, you'll just have to trust me. One of the NYSE gents said "I don't know where the volume is coming from, nobody on this floor is buying?"  Fed has no 'reserve' just more and more paper 'money' with no intrinsic value. After so many failed Govt programs do you believe "Backed by full Faith and Credit of U.S. Govt is applicable?" Great reason why we're seeing equity prices rally, U.S. loss of credibility to fight a 'modern-day recession' with Monetary policies and no help from the Fiscal side as anti business policies from the Legislative side pile.  
  • Now O's ACA, giving big Brother free reigns to mandate HC policies which account for 17% of GDP.

We definitely need to rejigger the HC system butt forcing a religious man or woman to pay for abortions is clearly an infringement on the First amendment.   

God vs.Govt: What Does the Constitution Really Say About the Separation of Church and State?

The First amendment:
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereofor abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.
I agree with Adam that we deserve months of televised Town hall debates and not a partisan Reconciliation vote. Reconciliation is a legislative process in the U.S. Senate with debate limited to twenty hours.  

Imagine if 'W' passed legislation in the same way. Legislation that was responsible for nearly $1 of every $5 of the economy's Gross Domestic Product (GDP) but limited the debate to 20-hours. MSNBC's (aka MS-LSD) line-up of socialists: Mr. L. 'O' Donnell, Mz. R. Man-off, Mr. Chrissy 'thrill up my leg' Matt-news, and the ex James Brown tour manager and HS graduate Al 'Reverend since age 4' Sharpton would all be calling for public demonstrations.   

Whether ignorant or deceitful 'O' insisted "You can keep your plan if you like it". Here's the Honorable and healthy looking 62-yr young Jeanine Pirro's views on the HC Act.

I do not agree with many things 'W' did, especially with crony Hank Paulson as certain Wall Street Banks' stock prices were in free-fall, yet I have a harder time with 'O' getting away with anti Constitutional legislation.

Let's elect Independent thinkers that will Delete the 'Unaffordable HC Act' and start over. Let's come up with solutions that a majority of the people agree on. 

I am sure that most Darwinian Capitalists have soft spots in their hearts for helping people with pre-existing conditions, butt let's agree on a HC overhaul in Town halls and not through a Reconciliation vote. 

Wake-up America, it's not too late!  

Photo: JMc

I thank you for reading, and if you have a comment or question, email me. 
Capitalist Pig Bob @ 

Forest fire Darwinian Capitalism is best solution to almost every problem in the U.S., not big Brother! 

Elon Musk's Tesla Motors (TSLA) by the Numbers

Saturday, October 12, 2013

J.P. Morgan (JPM) and its Pending Multibillion Dollar Shakedown..

J.P. Morgan's (JPM) $23B cash hoard surpasses market capitalizations of 66% of the cos in the S/P 500 as the U.S. Justice Dept shakes it down for some amount unknown. 
POTC believes U.S. Attorney General Holder will go hard and any settlement of $11B or > will likely send JPM and most big banks lower as focus turns to their balance sheets. We would be bearish on the S/P in the short-run as soon as such a large settlement is  struck. 

CEO Dimon is obviously overweight cash because of upcoming settlement bomb. The enormous cash balance aka reserve number is 12% of JPM’s market cap and includes the $9.15B added during Q3. A cash stockpile that large should allow the bank to get through the current Govt storm, still JPM warned of continued 'uncertainty' around litigation costs 'despite strengthening reserves to this degree.'

No other U.S. bank is facing such a regulatory and legal migraine. Banking authorities are investigating if JPM lied to investors about the quality of mortgages tied to mortgage-backed securities issued by Washington Mutual and Bear Stearns as the financial crisis was spinning out of control; both cos of which JPM has under its belt.
Big Brother has JPM and all other U.S. banks by their tails~ Frank-Dodd anyone? 'W' and Paulson started this crap, shame on them.
JPM is supposedly facing a settlement of $11B after Holder rejected the bank’s offer of $3B to end criminal and civil charges just weeks ago. 

POTC finds criminal charges a gigantic paradox since it was the Govt responsible for brokering all these after-midnight deals.  

Saturday, September 21, 2013

A Fundamental Breakdown of 3 Major EHR Companies by Motley Fool's Leo Sun

When most people talk about the electronic health record, or EHR, market, they tend to speak in terms of forward projections. They focus on the projection that the North American health care IT market will grow at a compound annual growth rate of 7.4% to $31.3 billion by 2017. They also point out that the U.S. government's HITECH legislation, started in 2009, will continue funding these businesses as medical practices are offered incentives to make "meaningful use" of their EHR services.
Shrewd investors, however, should know that forward growth projections are often far rosier than they actually are. Therefore, in our zeal to discuss the latest mobile EHR apps, speech recognition software, and biometrics technology in health care IT, we shouldn't neglect the basis of all solid, long-term investments -- the fundamentals.
In this article, I'll take a look at the fundamental growth of three leading EHR companies --Allscripts (NASDAQ: MDRX  ) , Cerner (NASDAQ: CERN  ) , and athenahealth(NASDAQ: ATHN  ) -- and how much scaffolding supports each one.
Market share growthAllscripts, Cerner, and athenahealth are three publicly traded companies that rank in the top ten EHR companies by market share. General Electric and McKesson are also major public players in the health care IT field, but both businesses are more diversified. Privately held Epic is the market leader in larger practices, while Practice Fusion is the fastest growing company in the industry.
A look at the market share growth in the ambulatory electronic medical record, or EMR, market between July 2012 and May 2013 reveals that only Practice Fusion, athenahealth, Epic, and Cerner reported positive market growth.
July 2012-May 2013 Market Share Growth
Total Overall Market Share
Practice Fusion
Sources:, SK&A
While it's clear that athenahealth is the fastest growing publicly traded EHR company, its market share still trails its larger peers by a wide margin. Allscripts, on the other hand, has lost significant market share over the past year, despite extensive partnerships which include collaborations with tech giant Cisco and drugstore chain CVS Caremark.
The Foolish fundamentalsNow that we've established which companies are growing and which are shrinking, we should compare their fundamental valuations.
5-year PEG
Trailing P/E
Price to Sales
Price to Book
Debt to Equity
Profit Margin
Source: Yahoo! Finance, as of Aug. 29.
Fundamental investors should immediately notice some major problems with athenahealth -- its whopping P/E, P/S, and P/B ratios all suggest that the stock is grossly overvalued. Its 5-year PEG ratio of 3.79 also suggests sluggish growth ahead. Moreover, the company's paper-thin margins and high debt-to-equity ratio are major red flags. Allscripts has some major problems as well -- a five-year forecast for sluggish growth, a lack of profitability, and negative margins.
Cerner, on the other hand, has more stable valuations than either athenahealth or Allscripts, but the disparity between its PEG ratio and trailing P/E suggests limited upside from current levels. It also has robust double-digit margins in an industry plagued by negative profit growth.
A look at the top and bottom line growth of these three companies also confirms the fact that only Cerner has been able to preserve its top and bottom line growth over the past two years.
ATHN Revenue Per Share TTM Chart
A look at the price performance of these three stocks over the same period indicates that although investors are satisfied with Cerner's solid growth, but they are more enamored with athenahealth's growth potential, despite its lack of fundamental support.
ATHN Chart
The Foolish bottom lineOf course, fundamental valuations only tell half the story for these EHR companies. To fully gauge their market value, investors should also consider their future growth prospects.
Looking forward, athenahealth investors should consider its deal with Ascension Health Alliance, which added 2,700 doctors to its EHR service, and the growth of its popular Epocrates medical reference app. Cerner investors should keep an eye on the company's partnerships with Nuance for clinical documentation improvement and voice-enabled EHR apps. Last but not least, Allscripts' partnerships with Cisco and CVS, along with its recently updated iPad EHR app, could help it regain some of its lost market share.
With the EHR market becoming more saturated every day, it can be tough to separate the winners from the losers. Although health care IT companies have yet to reach their full market potential, investors should always do their due diligence and measure each company's financial health against its future growth prospects to find the best long-term investment.
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