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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: ynot who wrote (8672)	6/25/1999 10:18:00 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

Ynot, careful doing DD on SIEB. . . it can be addictive. . .especially when you consider the value of one share in a company with 900k in the float. . . compared to one share in a company with 55 million in the float. . . . then to realize that the company pays regular dividends on that same share. . . .and that the primary owner, Muriel, doesn't ever seem to sell any of her shares. So listen to this thinking. . . More online traders. . .and more money. . .means we buy more stock in general. . .this puts a natural strength to buy side [long-term]. . . still same amount of shares in float of SIEB. . . .SIEB has been growing into a top 5 or 10 online trading house. Online trading sector growing by leaps and bounds. All these new traders see that. . and take positions. . . meaning more and more are trying to take positions in SIEB. . .over time. . . . therefore. . . each time that online trading gets some activity. . .SIEB float gets sucked dryer and dryer. Point is this. . . there will come a time when SIEB float is held almost entirely by LONG TERM hands. . . this will not happen during UP times, but during long lulls, when near-term traders sell their shares. . . and investors buy and hold. So what I expect to happen is this. . . . while we are holding and float is going to buy and hold. . .nothing happens. . .then when EGRP and AMTD pop. . .one day. . .watch SIEB. . . .it could explode with NO WARNING, due strictly to the float. That is why I sleep better HOLDING it, than not holding it. Sure there is the threat of dilution one day. . .but look at history. When Muriel thinks there should be more shares out there. . .she issues a split. Last split was what? 4 or 5-for-1 or something like that. I'll take that. . . .because LONG TERM split adjusted. . .that method has proven to give one heck of a return on investment over time. So while I think SIEB makes a good position trade. . .I think this issue could be an even better long-term hold. Muriel keeps a tight rein on shares. . and she should. . .because more than 90 percent of them are hers. . . Look at growth and stock performance over past 3 years. But be prepared to be impressed. SIEB is just the sort of stock to make you a bull. Rande Is