I have been recently looking at some of the smaller cap stocks ( <$200 million).
I think in some of these stocks, the share price is sometimes a bit misleading as over periods of time the company may be issuing new shares to raise money or for an employee benefit plan.
Because of this dilution, you would expect the share price to decrease even though the market cap of the company might stay the same. I would think being able to track the market cap of a company would be a better way at gauging its performance over a longer period of time but I am yet to find an easy way to do this (especially for the smaller cap stocks), have you got any tips of where to find this sort of information? Cheers!