Dear Bedford BOY,
There are two separate issue with a float, the first is the absolute number of free trading shares, the other is the likelyhood of those shares actually desiring to trade them. There are small investors that will sell as soon as the price initially attracts some attention say at the 100-300% gain level (or less). In a company that has a lot of HRCT share holders that have no loyalty to the companys growth potential, those shares will hit the market (or have already) sooner rather than later. If there is more institutional interest or longer term interest, they will keep the shares, eg Warren Buffet's statement that is a company is making money for him, why would he want to sell it. In other words, as long as the investor has some idea that the growth has a good chance of continuing, no matter how high the gain, a significant ammount of shares are likely to remain tied up. I am a pragmatic investor and will sell portions along the way to decrease my risk in this small and changable company, bur risk takers like David can get dramatic results (at times) like when HRCT went to $20 per share. It did not stay there because investors lost faith in the growth model and jumped ship.
I expect some jump in the share price of this company and if I see that this MK business is doing well, I will retain more shares rather than less.
I think the aspect of your posts that irritate is that you express yourself like and entitled child. The content seems valid to me, and being a father I have this urge to scold you.
G
There are two separate issue with a float, the first is the absolute number of free trading shares, the other is the likelyhood of those shares actually desiring to trade them. There are small investors that will sell as soon as the price initially attracts some attention say at the 100-300% gain level (or less). In a company that has a lot of HRCT share holders that have no loyalty to the companys growth potential, those shares will hit the market (or have already) sooner rather than later. If there is more institutional interest or longer term interest, they will keep the shares, eg Warren Buffet's statement that is a company is making money for him, why would he want to sell it. In other words, as long as the investor has some idea that the growth has a good chance of continuing, no matter how high the gain, a significant ammount of shares are likely to remain tied up. I am a pragmatic investor and will sell portions along the way to decrease my risk in this small and changable company, bur risk takers like David can get dramatic results (at times) like when HRCT went to $20 per share. It did not stay there because investors lost faith in the growth model and jumped ship.
I expect some jump in the share price of this company and if I see that this MK business is doing well, I will retain more shares rather than less.
I think the aspect of your posts that irritate is that you express yourself like and entitled child. The content seems valid to me, and being a father I have this urge to scold you.
G
