BlueSkyWaves, thanks for the correction
I said
"Blueskywaves, your posts seem to equate float with dilution. Float is the number of shares outstanding, and can be increased by stock splits, share sales by the company,"
You replied
This is incorrect. Outstanding shares is the number of shares issued. Float is the number of outstanding shares less shares held by insiders and 5%+ owners. In other words, float refers to the actual number of shares available to the public for trading. From Yahoo, IDCC's current float is nearly 50M shares out of diluted outstanding shares of around 55M.
Like I said, look around. A float of 50M shares is too tight for a soon-to-be $200M a year company that is trying to attract
more mid-cap funds to establish larger positions. A split would solve that, but if IDCC is contemplating the acquisition of a company with existing revenues then that would be preferrable.
By the way, funds flow also appear to be favoring mid-cap funds at the expense of big-cap funds.
So do we agree that increasing float (as properly defined by you) can be done is ways that are dilutive and non-dilutive? I don't see float as an issue, dilution is.
However, I still have the same questions.
Don't funds invest a dollar amount based on a percentage of their fund (e.g., 8% in telecom, and of that 5% in IDCC) without concern about share price? It is a real question, as I am NOT street savvy, so those who know please correct me or confirm. The only price issue I've heard of is that some funds will not buy stocks trading below a certain dollar level.
Supply and demand - isn't tight supply something that leads to higher prices?
