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Last Post: 7/18/2019 9:37:33 AM - Followers: 46 - Board type: Free - Posts Today: 0

Make some green off of sticky green!

 "Pot is no more dangerous than alcohol"-President Obama
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 "While often ignored in the financial media, "low-float" stocks should be in every investor's vocabulary. The reason is simple. Low-float stocks tend to be much more volatile than stocks with larger floats. Simply put, the "float" of a stock is the number of shares available to the public for trading. It doesn't count shares owned by company officers and insiders. In this case, it boils down to a question of supply and demand. Because of their limited supply, stocks with small floats can make major moves-either to the upside or downside. Some companies exploit that same volatile potential in their initial public offerings (IPOs). Last year many tech companies used low floats in their IPOs to ensure a big first-day pop in the stock price. "The more you constrain demand, the more likely, especially in a retail-oriented name, you're going to see a spike in price," Paul Deninger, a senior managing director at Evercore Partners Inc., told Bloomberg News.

The strategy worked for LinkedIn Corp. (NYSE: LNKD) last May. With a tiny float of just 7.8 million shares - less than 10% of the shares outstanding - LinkedIn more than doubled its IPO price in its first day of trading. An even more extreme example of using a low float to drive up an IPO was Caesar's Entertainment Corp. (Nasdaq: CZR) in February. The initial float for Caesar's was just 1.8 million shares, a mere 1.4% of its shares outstanding. CZR doubled in price during its first day, and closed up 71%. "I've never seen anything like it," Morningstar Inc. analyst Chad Mollman told The Wall Street Journal, in reaction to the low float. "I've been following IPOs, and we couldn't believe it when we saw it. You're creating an artificial demand and supply imbalance that leads to speculation." The Perils of Low-Float Stocks But when share prices get inflated by such artificial means, the bubble-like valuation leaves it vulnerable to steep and sudden drops. If a low-float stock gets hit with bad news, it can plummet as quickly as it rose. That's one reason both Caesar's and LinkedIn have significantly increased their floats since their IPOs, though both are still on the low side. LinkedIn's float is up to 65.39 million shares, about two-thirds of the shares outstanding, and Caesar's stands at 24.86 million, about 20% of the shares outstanding. Companies that keep their stock float low, however, never shed the risk of a rapid loss in value. And it's investors who pay the price. Take Travelzoo Inc. (Nasdaq: TZOO). Its unusually low float - just 7.46 million shares - helped propel TZOO briefly over $100 a share last April. But a bad earnings report last July knocked Travelzoo down 22% in one day. And it only got worse from there. Successive earnings reports disappointed as well, causing TZOO to surrender a total of 75% from last July to this April. Another case in point is Netflix, Inc. (Nasdaq: NFLX). Its float is about 54 million, below average for a stock that has an average daily trading volume of about 6 million shares. As of July of last year, the low float was a factor in pushing Netflix close to $300 a share. The stock began to erode last summer when concerns about the company's subscriber base started to surface. By fall it was a rout, with NFLX plunging 35% in one day in October. Netflix bottomed out in the low $60s at the end of November, and currently trades at about $73. You may have noticed that the range of the floats for those stocks is fairly far apart. Yet both are generally considered low-float stocks. This raises a question that doesn't have an obvious answer: Exactly what constitutes a low-float stock? Defining a Low-Float Stock Unlike more widely known categories like market capitalization, low-float stocks don't have a specific definition. Investopedia, for example, only defines a stock float while helpfully noting that "stocks with smaller floats tend to be more volatile than those with larger floats." But the site does not elaborate. Some define low float stocks as those with fewer than 10 million publicly traded shares, but that includes a lot of penny stocks that most retail investors shy away from. There's also the factor of trading volume. For a low-float stock to be volatile, it also needs enough trading volume to push demand to levels necessary to move the stock price.

Penny stocks, while almost always low-float stocks, usually don't generate enough trading volume for the low float to matter." Read more here! http://moneymorning.com/2012/05/11/low-float-stocks-why-investors-cant-ignore-the-risks-2/>MoneyMorning
#391   bosqf inkw cann weedtrader420 02/03/19 12:44:08 AM
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#386   GIGL - low floater, shares in MUCH stronger Honeycomb777 09/30/17 10:58:38 AM
#385   $FUSZ Float 26M as of 6/26/17. News in Bjdev89 07/23/17 10:24:16 AM
#384   $CLDS: super low float at 1,669,168 with company Yusuf15 05/04/17 10:57:44 AM
#383   $EDXC went to 20 cents + back in Rock_nj 10/06/16 10:27:12 PM
#382   $ifon thin low floater, gonna breakout imo. worth MIC 02/12/16 04:57:30 PM
#381   $NWPN 21 million float w/$5 million signed deal VedderMan 02/11/16 07:59:58 AM
#380   $NEWC Applying with the FDA Charts say Strong Yooo 11/15/15 05:15:30 PM
#379   $NEWC Yooo 11/14/15 01:03:07 PM
#378   Check out the majority insider. I believe they $hellKing 04/17/15 10:21:26 AM
#377   WH-LX .16x.25 $hellKing 04/16/15 02:34:57 PM
#376   $BRWC Boreal Water Receives an Order From the Largest $Penny Pimp$ 04/01/15 10:14:40 AM
#375   Low float penny stock to watch/ low float jasonstocktrader 03/11/15 12:46:00 PM
#373   $GLAG is my low float play today. News OTC_Skywalker 02/13/15 12:56:54 PM
#372   $DGLV low float play. Just came off of OTC_Skywalker 02/11/15 09:38:46 AM
#371   CGRW ~ LOW FLOATER MUST SEE MMJ pivotpoint1 12/11/14 08:19:01 AM
#370   CGRW ~ Tue, 11 Nov 2014 18:04:16 GMT pivotpoint1 12/11/14 08:18:28 AM
#369   If you want in on the soon to $Penny Pimp$ 11/06/14 11:37:24 PM
#368   $SIPC, look at the chart, you may like Sonic Boom 11/05/14 10:23:21 PM
#367   Vteq run? Check! Mlcg run? Check! Uamm run?......... Happytrader17 10/29/14 11:51:03 PM
#366   Mlcg low float 19s up Happytrader17 10/29/14 09:59:22 AM
#365   Put $AJAC on your radar. This is $Penny Pimp$ 10/12/14 10:22:21 PM
#364   $VRCI to attend the 2014 Healthcare and Technology Conference. http://www.meetma Sonic Boom 09/07/14 08:42:34 PM
#363   $AJAC brand-new LOW-FLOAT pot-stock! AJA CANNAFACTURING INC. UserAlias1 08/11/14 02:16:31 PM
#362   Y'all should look into kimjf, it looks like $Penny Pimp$ 08/08/14 03:09:45 PM
#361   QEDN big thing about to happen imo... have moneyhunter14 08/04/14 12:05:26 PM
#360   DIDG.... AKA " The Movie and Music Network" was LauraT 07/20/14 01:53:13 AM
#359   $QEDN - The Company's recently announced acquisition of Anibal Wolf 06/23/14 12:18:05 AM
#358   $HMTF pot stock 3M share float http://www.4-traders.com/HOME-TREASURE-FINDER tbirdman 06/19/14 10:27:36 AM
#357   that mjlb is really alstocks 06/11/14 11:15:55 AM
#356   $MJLB - GREENSCAPE LABORATORIES, INC.  wholelotamoney 06/11/14 01:20:10 AM
#355   Not a good chart on TALK. Looks Rock_nj 06/10/14 03:22:18 PM
#354   $TALK expanding to the MJ industry, be on tandrel 06/10/14 02:24:49 PM
#353   I agree big run soon! QEDN moneyhunter14 06/10/14 11:53:04 AM
#352   I've been loading on these dips. Looks like OTC_Skywalker 06/10/14 11:51:42 AM
#351   That will be huge.. hope your in now.. moneyhunter14 06/10/14 11:50:17 AM
#350   $QEDN can grow a lot of weed. We'll OTC_Skywalker 06/10/14 11:42:31 AM
#349   QEDN newss moneyhunter14 06/10/14 11:10:20 AM
#348   Attbf news hit not posted on ihub. Shark Attack 06/10/14 10:52:04 AM
#347   Good afternoon Low Float Pot Stocks () looking RowingDude 06/06/14 03:39:33 PM
#346   $LXRP~ Lexaria will add transparency and procedural control pivotpoint1 05/28/14 08:24:05 AM
#345   $AMMG check it out. Hearing lots of chatter itiswhatitis 05/20/14 09:32:37 PM
#343   $AXXU getting some volume...numbers expected soon. new_beginnings 05/16/14 09:44:40 AM
#342   SKYF 350m floater First News in years AND NORTH LAND 05/15/14 03:29:08 PM
#341   $SKYF Check the PR MJ. Nice addition. Silver Surfer 05/14/14 02:58:19 PM
#340   $PIHN, getting ready to plant 70 acres of Sonic Boom 05/14/14 12:22:36 PM