Replies to post #235784 on Anavex Life Sciences Corp (AVXL)

[gburgin]

Interesting comment on Reddit on institutional price limits
like the much reported $5 limit...

"This is indeed a real thing, though it is going away as information becomes more readily available. Before the advent of computers calculating accurate market cap for a stock on the fly was difficult. This is why the DJ is a price weighted, rather than market cap weighted, index. My understanding is that the $5 rule was a product of an era when market cap wasn't as easy to calculate.

At this time most institutional investors have guidelines in place for the size of companies they can invest in, irrespective of stock price. Before BoA Citi did their reverse stock split there price was under $5 for over a year IIRC. Also the minimum for small cap investments for institutional investors that I have seen has been around $250 million. It just isn't feasible for an institutional investor to invest in a company smaller than that."

[mrplmer]

Ya we could be in IBD on front page this by Friday.

[drv17]

Longtermbeliever -I've been playing with some trading shares in the low $4 range in the early trading done to paint the share price for the day.
These were just going to be for trading but I might just add them to my core.
I think I'll get some stock certificates issued for some of my purchases pre-split and have them framed for my grandchildren. They should be a very valuable collector item to hang on their wall when the share price hits the $1000 mark.
Shares at the low price this morning were in very short supply. I placed a market order for 1000 shares and it was filled by 8 separate sales.
So now "longtermbeliever" do I add the these to my core and "Hold On Tight" like you advise or should I sell them as was my original intent ??

I am a very loooooong term investor here!