another example of free float

another example of free float

Majority of stocks(smallcaps) we cover have a market
cap under 1b, some 100m, 300m, microcaps sometimes dip
under 50m. The float can range from 1-10million, some
higher. The float is useless unless you have volume or
momentum come to the stock because of excellent
earnings, a good story etc. The smaller the float, the
greater chance of imbalances..the greater the
volatility in the stock, it can flow both
ways......"supply/demand"... big buyer(s) roll in and
momentum is born.

A stock like POSH will not get momentum just b/c of
its float, its EPS is in the red. MOMO traders want to
buy a bigger crib,not a baby crib. I'd even question
in the CEO buying a puny amount in anticipation of a
listing on the NASD, increase in volume was tiny and
was also in anticpation of the exchange switch. Looks
like someone wasn't wearing a bip since it listed on
NASD.