Tom: For me, the stock market is about supply and demand for shares. I learned long ago that when mathematics gives you a constant, you better learn how to use it.
The Float is a relative constant, changing only with warning or according to rules. this makes the Float one of the most significant facts of a stocks outlook. (As i work in a narrow universe of companies, floats from 2 to 140 million shares), being able to spot prevailing trends in the daily action, Accumulation, distribution or Obfuscation is all important.
All action happens under the banner of one of those three principle actvities. And all action happens within the scope of the free float, which is the shares remaining in traders hands, until investors take them away.
And then there are the IOU's that are taken out by short sellers but mostly specialists on the exchange. Those actions create a liability with latent juice to the upside. In an undervalued stock, virtually all shorting falls under the banner of Obfuscation. Price suppression programs are trying to get hold of scarce supply. So longs and shorts want the same thing, it's the means to that end that determines outcomes in the short or medium term.
Two choices exist, short beyond reason or raise the price. Mr Markets first choice is always the path of shorting beyond reason. Investors with a long time horizon, should begin Stalking the bear as the preferable path to taking your fair share of a targeted investment, at the best prices.
As Mr Market drives down the price and holds it there, gently accumulate your position, at a certain point Your getting the residual juice as well as the best cost.
In a long term Accumulation play, addition by subtraction happens as shares are removed to investors and upward price movement occurs. Eventually the stock will drive to create additional liquidity, always my end target. To Sell post split or acquisition.
Well you get the idea. |
