InvestorsHub Logo
Followers 132
Posts 7021
Boards Moderated 3
Alias Born 03/17/2010

Re: TAnderson post# 14048

Tuesday, 11/29/2011 11:59:59 AM

Tuesday, November 29, 2011 11:59:59 AM

Post# of 30974
SS is share structure. The share structure of common stock(the one we buy and sell) is made up of A/S authorized shares, O/S outstanding shares and the float. OTC companies use common stock to finance most of their endeavors although it is not the only route a company can go(but it is the usually route).

Usually down the line companies increase their A/S if they feel they may need more capital before becoming profitable have to remember these are start ups(a lot of these OTC QB and pink companies never become profitable but that doesn't mean you can't make money off of them;). When a company raises it's A/S that doesn't mean all those shares suddenly hit the market that just means the company is now authorized to add more shares to the market as needed.

This is done through dilution when shares from the company are sold into the market. This isn't nothing to be scared of though unless you have a company that dilutes 100M+ per 3 month period(AQLV dilution history is only an average of 30M shares added to the O/S every 3 month period. This can be checked by looking through the 10Q's and contacting the transfer agent you can find all the fillings here along with the email to the TA http://www.otcmarkets.com/stock/AQLV/company-info.)

The float is the freely trade able share from the public. Usually anything under 350M float is good AQLV is in the 180M. I say this because once you have a huge float you add another factor that can bring a failed trade(your not only dealing with the dilution factor but also the tons of people that are holding.) if you have a huge float you can see huge amounts piled on the ask at any price. Huge amounts being 5m+ on one tick making it really hard for a stock to go up since so much money needs to be thrown at one level just to make it move(and even after that level you might see even more millions of shares per tick up.) Just by looking at the ask size you can tell that the float for AQLV is fair. 5k on the ask is always a good sign of a low floater stock.

Something extra, there is factors that can make a failed trade(excessive dilution, huge float) and factors that can make a successful trade. AQLV has the factors that can make a good trade. It has the news factor(we are waiting on 2 product updates NatuRx and AgSmart Potato) and it has company officials who are very reasonable with financing(they don't dilute much and do not have a history of excessive dilution.) The updates will send the stock up and low dilution will allow it to go up pretty good. It's not rare to buy a stock at this level, with this SS and watch it go up 100%-1,000% in a short period of time.

There is some other factors that Ihub adds to trading since it is a huge site that a lot of new and experienced traders/investors use(lots of eyes.). But there is a sticky on this board from Edward saying not to talk about agendas it's considered off topic. So I won't go into that.