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Non-Tech : TD Waterhouse Group (TWE) -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (523)	6/29/1999 9:26:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 1413

HI Tom; Your onto something beyond what I'v looked at, given if mergers and take overs offset the IPOs , it seems that would also hang on how many were cash deals vs stock deals, the net would not just be the number of issues but more in the total amount of shares that are floated. While the market can handle more shares over time, I think sudden increases are bound to cause pull backs. In many cases mergers are at a premium , which for a short while jacks up the price of the stock being acquired, however it don't reduce the total float of shares when it's final if it was at a premium and not in cash then the total shares out are increased. I don't know how to get the data, but would love to measure the total "float" of the market over time, as I tend to think just counting issues may not take the analysis far enough. The TWE IPO put a lot of shares on the market, some of the IPOs that faired better floated far less shares. Buy backs take the float down, but at this time many of the buy backs are not what they look like, if they are done with borrowed money it's window dressing. While the pundits have every one looking at earnings that's also a narrow view how do we get total debt to equity of the market, I fear it's gone up a lot in the last year. AS a whole Likely faster than earnings, they use slight of hand in buying back shares to increse the short term EPS, when they do it by floating bonds. The junk bond market is begining to show overload, Mutual funds I track that deal in them are having a rough time of it. Jim