<< KTEL float is 300k >>
That explains, at least in part, why two people I have talked to tonight that tried to short it today were not able to do so because shares were unavailable.
From what I can tell, KTEL has a book value of around $1.50 a share as of 2-98 and 2.9MM of the 3.8MM outstanding shares are held by the CEO and other officers (they also hold another 350K options). (from the 14A in Feb 98). There appear to be around 550K options total at prices ranging from $1.50 to $8 per share, although two of the officers hold (held) around 400K of those options at $4 a share....wonder if most of those have been exercised and sold in the last couple days.... Wasn't able to find any info on a fund holding 600K shares, though, which would represent most all of the remaining outstanding shares: at least all but 300K.
If there is a fund that owns 600K shares (or even anything even close to it), it looks like the only people that will be able to short it are the officers and the fund (other than the naked shorts by the MM's), which as I learned last week could be very dangerous.
The MM's must be REALLY hurting on paper. It is almost surprising that trading was not halted today: I can't think of anything that could be more of an order imbalance than this. Of course, if I'm a smart MM, I might just wait for an order imbalance to happen until tomorrow when all of the sell orders hit....let it be halted and then let it open much lower to clean up on my naked shorts as everyone scrambles to sell at massive losses.
Trading volume of 14MM shares with a total public float of less than 900K just is not realistically possible. On the other hand, found this piece, which argues that giving KTEL a value comparable to CDNW based on sales would make KTEL worth $850 a share, which would leave it a long ways to run yet.
news.stocksmart.com
Could be an interesting day tomorrow in KTEL. May take a dip after I see how it opens. It just does not look like there are any meaningful shares out there to be shorted. I'm not greedy: I'll gladly take only $5 a share gain on a couple thousand shares and walk away quite happy....don't even need a 10-20 point move like today.....:) So long as things are CRZY, why fight it...might as well make money off it as long as it lasts.....and be ready to cut quick if it doesn't.....
Troy |
