To: Jorjenzak (2713 )
From: Tradewinds Tech Wednesday, Jun 16 1999 2:09PM ET
Reply # of 2717
There has been much speculation lately as to why the stock price isn't doing better, given that eConnect is reporting, has revenues, etc. I agree it is suprising that the price hasn't moved higher, with revenues reported and a good game plan for the future.
One possibility I haven't heard mentioned, is the question of how much stock may be in the hands of various consultants, programmers, engineers, accountants, lawyers, ad firms, etc that did work for Tom over the years. Lacking cash, perhaps Tom has paid a lot of people off in stock, for goods and services used by the company. That would be very typical for a start-up, and there is nothing wrong with this approach.
Now, whereas investors may be long, and hold their stock with a smile on their face as it goes up...people who provided services in return for stock, aren't mentally committed to the company as an investor would be, and are more likely to sell when they see the price rise.
If there are a lot of "shareholders" like this, they could hold down the price until they have all cashed out. And, as non-employees that were paid stock for goods or services, they wouldn't be required to do any "insider filings" etc. that they could be tracked by?
When you add up how much Tom and ET&T control, plus ownership the posters on SI and RB will admit to, it doesn't total to the 14 Mill outstanding? So, there could still be several Mill shares in the hands of people who will keep trickling their stock out every time it heads upward. It could take the market a few more months to soak up all that stock?
This is just an idea that has occured to me, I am not aware of any evidence. But it makes sense. Any thoughts?
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