RE: Volume and Liquidity in NOVS shares?
I have just done a little research on "average" volume comparing Novastar to the likes of BAC, Ford, and PRAA, a friend of mines Public company, and here are the results.
BAC....average daily volume of 294M shares or about 3% of their float of 11 Billion shares
Ford....average daily volume of 49M shares or about 1.3% of their float of 3.5 Billion shares
PRAA....average daily volume of 100K shares or about 1/2 of 1% of their float of 17M shares
NOVS....average daily volume of 118K shares or about 1/10 of 1% of their float of 75M shares
I hope this makes the point that volume and liquidity in NOVS shares is dismal at best
Two questions.....Why? and the second, When can we expect change?
I'll tackle the first question by saying, few if any legitimate shares are for sale at prices below a buck. I know other than a few trading shares I may own and trade, none of my Long Term holdings are for sale other than an order I placed to sell 50,000 common shares in one of my retirement accounts, I put up for sale for 9.85 a share just to see if it would show up on Level 2, but it didn't because there are other orders ahead of it by the same MM for less.
Bottomline, shares of NOVS are in very strong hands and even the "average" investor will not part with them at these prices. On the one hand thats a good thing, but on the other, it doesn't attract many new investors who may be looking for liquidity and don't have the patience to hold for the real big returns.
Personally I plan on being around here for a very long time, but would like to hear from others regarding volume, liquidity and when this might change?
Rich
aka
Rooky |
