<<(2) Based on 45,829,896 shares of Common Stock outstanding on February 27, 1998.
SOFTBANK Holdings Inc.(3).......................................................... 13,428,842 29.3%
10 Langley Road, Suite 403
Newton Center, MA 02159
All directors and executive officers as a group.................................... 14,584,500 31.2%
(10 persons)(12)
...snip...
45,829,896 - 13,428,842 - 14,584,500 = 17,816,554>>
Peter you need to look at the footnotes and you will see that yes as of Feb 27, there were 45,829,896 shares outstanding however there are 985,682 shares "issuable upon exercise, by certain directors and executive officers, of options within 60 days of Feb 27, 1998 under the Company's 1995 Stock Plan." In other words, these shares would not be counted in the number of shares outstanding as of Feb 27 (45,829,896) but are counted in the insider holdings (prematurely in my opinion). So either the outstanding shares needs to be raised to 46,815,578 shares or the shares held by insiders needs to be reduced by 985,682. But you can't add the shares to insider holdings without adding them to the outstanding shares.
So the real numbers are:
Outstanding shares...... 46,815,578
minus insider shares.....-14,584,500
minus Softbank shares.-13,428,842
equals total float............18,802,236
Furthermore in reality, when those 985,682 shares are exercised, a portion of the shares are sold to cover the exercise price and taxes. So the actual number of shares to the insiders would be around 40% less than the 985,682. So when they are exercised they would probably only add around 590,000 to the beneficial owner shares.
The other 395,000 would be added to the float bringing it close to 19.2 million.
And again, it is very likely that Sequoia has sold the rest of their shares by now (the recent volume would have been enough for them to sell the rest given the 5% rule) so that would increase the float to 21 million shares.
If all the above is true and there are 3.9 million shares short that are not options related, the full effect of the short interest to the float is a little over 15%. That is very important as short squeezes are much harder to facilitate unless the short interest is much higher. If you look back on the big short squeezes in stocks like IOM and ZITL you will see the short interest at above 25%. The current situation in YHOO is turning decidedly in favor of the shorts. In January, we were above 22%. I'm sure to all the fundamentalists, this all sounds like voodoo, but since this stock has never traded on fundamentals, these numbers are key to where we head.
I shorted more at 89 1/4 today. |
