Well, my notion is that you are essentially correct. If the company has unissued shares that it decides to sell in a reoffering, that does increase the "float."
However, I also think that a split, reducing the per share price and doubling (in this case) the number of total shares, will mean some current holders may take profits, loosening up the float, but still staying in the stock. My experience has been that splits on profitable companies usually produce price gains on the post split shares. The wrinkle here is the bubble. Face it, $.29 should in no way produce a $l00 price, and post split, that $.29 would become $.145.
If, and it's a big IF, institutional investors get a whiff of this one, the $.145 could be "worth" $100. Crazy, crazy, crazy. I think we're all somewhere in Kansas. |
