C2G Score (Cap 2 Growth)

C2G stands for Cap 2 Growth or Market Cap to Growth score. This is how we evaluate and pick stocks that have high potential for growth. They are scored on a scale of 1 – 10. 1 being very little room for growth and 10 being potential for explosive growth. C2G is an idea based off of different factors which we will explain below.

We look at market cap in different price increments for the stock. We look at it from 50 million to 50 billion dollars. If a stocks market cap is under 50 million and they are a company who is NOT doing business world wide, we look at how they can expand into different countries. We also look at the segment they are in. If they are in an up and coming segment that hasn’t matured yet, or if worldwide expansion is possible, then we will look for the market cap to be at least50 million. As the company matures, we will look for them to get to 100 million, 500 million and then finally 1 billion. We feel like if a company can expand world wide, then it should be easy for them to be worth 1 billion dollars today.

After a company is worth 1 billion dollars, we would like to see them start to put a plan in place to expand. If the product seems promising and they can market and sell it, then we will look for the market cap to be about 5 billion. Once the company can prove that their product is starting to be used successfully, we look at that company to get to 10 billion. After the 10 billion mark, it’s hard to score the growth of the company, but it’s possible. If they have more products in the pipeline, and also, start looking to acquire companies, then we can look for them to become a 50 billion dollar company. After they become a 50 billion dollar company, most of the time, we no longer can score them.

To give you an example of how we would score past companies, in 2016 when TDOC was about a 300 – 500 million dollar company, we would have gave them a C2G score of 9 out of 10. They had an innovative product and could easily expand outside of the United States and they had minimal competition.