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Microcap & Penny Stocks : Financial Intranet Inc. (OTC:BB:FNTN)

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To: Greg Hodges who wrote (1780)5/16/1998 12:12:00 PM
From: JOHN WHITE  Read Replies (1) of 2897
 
Greg I guess one could write a book on this subject but generally speaking private investors entertaining ideas of buying shares of startup companies look for smaller outstanding/float companies to buy into. The smaller outstanding shares number means that immerging net profits are not spread out over so many shares & thus the earnings per share (EPS) is higher.
But once a startup company gains either or both (1) increasing profits and (2) visibility and becomes KNOWN to investment institutions ie. mutual funds etc. having a larger float becomes more desirable . These "professional" institutions need to be able to enter and exit in large volume an issue without driving the price of that stock up or down rapidly .
FNTN has a relatively small outstanding & float but not so small as to be restrictive to fairly important investors - yet.

I hope this opinion helps . Please realize that everyone may not agree entirely with my analysis .

John
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