Glenn, Reng is thin in trading and little float. Now what Mark didn't tell you was to get gains in a low float stock there must be demand for the limited shares available.
I thought I posted this to you yesterday, but maybe not.
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Research Engineers, Inc. (Nasdaq:RENG) came out early this morning to announce that its Board of Directors had approved a 2:1 stock split of its outstanding common shares. The record date for the split is Monday, January 31, 2000. The Company's transfer agent will distribute the additional shares on Monday, February 7, 2000.
Research Engineers is a Yorba Linda, Calif.-based software company. They design software solutions for use in design automation and analysis. In addition, the Company develops software for use in information technology services as well as Internet and e-commerce solutions. They have offices and/or distributors in over 40 countries, having provided their products to over 140 thousand customers in over 65 countries. The Company first went public in July of '96 at $5 per share. They currently have approximately 5.9 million shares outstanding, with 20 million shares authorized. Of the shares issued and outstanding, approximately half are owned by insiders, with the rest (3 million) available in the float. Today's announcement marks the first split of the Company's shares.
Shares of RENG have seen a dramatic rise in the last 2 months. Prior to mid-November, the stock had been unable to break above $10 since its inception. Since the November breakout, the stock has increased over five-fold to a current price of $57.38. The 52-week range for the stock is $2.56-$59. This price increase is, in part, due to the limited trading float. Despite the recent run-up and the attractiveness of a limited trading float to momentum investors, we are hesitant to add the stock to our Recommended Split List due to the lack of liquidity, as the average daily trading volume for the stock is less than 40 thousand shares. We will continue to monitor the stock to determine if a favorable situation occurs that would warrant taking a position in shares of RENG. |
