posted
Hey all...I read these boards religiously everyday and 90% of the time I see the same thing posted on alot of the threads. Either people complaining that the O/S is way too high and the stock is never gonna move, or it's way too low and too be very careful. So...I'd like to hear some of your opinions on what you feel the ideal amount of O/S is, and how that plays in your decision making process when deciding on a stock to play.
Just curious and think this will make for an interesting discussion!
Posts: 596 | From: New Jersey | Registered: Apr 2006
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the lower the better! under 100 million is great, under 20 million can mean fast moves up or down, if you are looking for 00 or 000 runners with the potential to hit high 00`s or break a penny 2 to 3 billion seems to be the max. more than that and they can easily stall. percent gains, volume, hype, pending news all move these things. volume ( liquidity ) is key! no good jumping on a fast mover if the volume is to low to sell when your target hits, how many people here have seen the MM`s take the price down seconds after you enter a sell order on a low volume runner!. low floaters can run fast on low volume, you have to chase it to get in, they can jump two or three hundred percent in a few minutes, by the time you place your buy order the price starts to slide. beware buying into a rocket with no news or info available, it`s bound to crash! buying in on a stock thats up 300 percent on no news is a recipy for disaster. low float does not always mean high return. you will find 000 stocks generaly have a high O/S especialy if they have been around a while, same with 00`s penny to ten cents and over usualy lower O/S, R/S plays that have fallen to the floor from thier post split highs can be very lucritive plays because the O/S is still relativly low until the company dilutes it back to pre-split levels, anything can run reguardles of the O/S the question is how high!
Posts: 2503 | From: connecticut | Registered: Mar 2005
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The smaller your o/s... the less it takes to move...
With that in mind... anything under a penny usually has a large number of o/s... the lower the better of course...
Stay away from anything in the billions/trillions... perfect example... PAIM... if it is possible for you to own 100 million shares of something, RUN! I don't care what anyone says, it's pretty damn hard to unload 100 million shares of something when it's on the run... the only time you get rid of those shares is if a r/s takes place, and nobody wants that...
Adlai_
-------------------- MSEP Posts: 599 | From: Springfield, MO | Registered: Feb 2006
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quote:Originally posted by madmoney: the lower the better! under 100 million is great, under 20 million can mean fast moves up or down, if you are looking for 00 or 000 runners with the potential to hit high 00`s or break a penny 2 to 3 billion seems to be the max. more than that and they can easily stall. percent gains, volume, hype, pending news all move these things. volume ( liquidity ) is key! no good jumping on a fast mover if the volume is to low to sell when your target hits, how many people here have seen the MM`s take the price down seconds after you enter a sell order on a low volume runner!. low floaters can run fast on low volume, you have to chase it to get in, they can jump two or three hundred percent in a few minutes, by the time you place your buy order the price starts to slide. beware buying into a rocket with no news or info available, it`s bound to crash! buying in on a stock thats up 300 percent on no news is a recipy for disaster. low float does not always mean high return. you will find 000 stocks generaly have a high O/S especialy if they have been around a while, same with 00`s penny to ten cents and over usualy lower O/S, R/S plays that have fallen to the floor from thier post split highs can be very lucritive plays because the O/S is still relativly low until the company dilutes it back to pre-split levels, anything can run reguardles of the O/S the question is how high!
Love the response! Very informative.....thank you!
And thank everyone else for your opinions so far. I wasn't asking because I don't know how it works, I was asking just to see how others played stocks based on this info. Thought it'd be pretty interesting to see. To be honest, what made me think to make this topic was DDSI. I have a small position in that one with about 8 billion O/S and the last couple days with the news out, it's seen a ton of volume (about a billion and a half today) and tons of huge buys and has barely moved. Alot of people keep bringing up the number of O/S and made me think of this....just in case anybody cares =)
Posts: 596 | From: New Jersey | Registered: Apr 2006
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posted
Cactus DDSI is only up 33% not 100%. 300 million is movable if it's a few cents or less. 50 million and below can gap very easily and on less trades. The lower the float the better chance for big, quick gains, but can be hard to get out of them. Always have a exit strategy and set your exit price early so as not to be stuck on the fall back down.
Posts: 293 | From: Virginia | Registered: Apr 2006
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quote:Originally posted by madmoney: the lower the better! under 100 million is great, under 20 million can mean fast moves up or down, if you are looking for 00 or 000 runners with the potential to hit high 00`s or break a penny 2 to 3 billion seems to be the max. more than that and they can easily stall. percent gains, volume, hype, pending news all move these things. volume ( liquidity ) is key! no good jumping on a fast mover if the volume is to low to sell when your target hits, how many people here have seen the MM`s take the price down seconds after you enter a sell order on a low volume runner!. low floaters can run fast on low volume, you have to chase it to get in, they can jump two or three hundred percent in a few minutes, by the time you place your buy order the price starts to slide. beware buying into a rocket with no news or info available, it`s bound to crash! buying in on a stock thats up 300 percent on no news is a recipy for disaster. low float does not always mean high return. you will find 000 stocks generaly have a high O/S especialy if they have been around a while, same with 00`s penny to ten cents and over usualy lower O/S, R/S plays that have fallen to the floor from thier post split highs can be very lucritive plays because the O/S is still relativly low until the company dilutes it back to pre-split levels, anything can run reguardles of the O/S the question is how high!
I also tend to like stocks with O/S under 100 million. For small share out, look at SOIGF, Strata, this week had a 1 for 2 split. Has 20 M out now, before it was 10M and she moved betwwen 1.60 and 2.75, then she took off to 5.50. So a low O/S moves up quickly. I missed that one.
MADMONEY's post: This post offers some exceelent insight. From my short term experience in pennies, VRDM, RSHN, JPHC and a few others, stalling is a big possibility, and before you know it, it can drop in a few days and you lose 50% of your money. You have to catch pennies 5 cents up/ at a upswing cycle. Yeah I know easier said than done. AS I've noticed many here will post their best picks AFTER!!! the stock has JUST MADE its 300%+ move. Its like they want you to jump on board so to pump THEIR stock higher, so to keep the momentenum and so gain a few more $'s on their sell off. Never, ever, ever jump into a stock after she has made a 3 day bull run. 90% of the time she will drop. And you are left holding the empty bag. Take a look at the hurricane stock, NSLT, national storm management. Its on the hurricane pick topic. Its made its move from 10 cents to now 40 cents. Its in a hold pattern, could go up a bit more = 5 cents, but most likely will take a dip. Watch it closely. It may move this summer as some say she'll go to 2-4 late this summer. Its anyones guess. If she dips, go in slow, small investment. Watch the volume.
-------------------- Do not invest on any of my suggestions Posts: 1215 | From: baton rouge | Registered: Apr 2006
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IVGA under 500MM shares, trending up nicely. Look at the chart, this one will be breaking out shortly.Volume has been increasing over the past 4 days, look for another great week.
V W K M IS ANOTHER ONE, LARGE FLOAT BUT frequent news release should get this turd moving by months end when the dividend is due. 15% Not bad for a pinkie.
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