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Technology Stocks : Vari-L (VARL)

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To: Andrew who wrote (1516)12/3/1999 5:28:00 PM
From: Robert Sheldon  Read Replies (3) of 2702
 
A split does nothing for institutional folks who want into a stock. They are looking to buy 3% to 9.9% chunks of a company's value not just shares. Thats a market cap problem, not a number of shares problem. The point is this: The majority of the company's shares (and thus market cap) are held tightly and not likely to be released. That is why I was pleased to hear (a rumor at this point) that management has let loose of a few shares. But those too have been snapped up for now. Folks that I am aware of hold at least 10% of the supposed "float". That is one reason why blocks are hard to come by - the float is not really as big as folks think it is.

Yet another reason splits are overrated.
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