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Technology Stocks : F5 Networks, Inc. (FFIV) -- Ignore unavailable to you. Want to Upgrade?

To: neverenough who wrote (204)	7/19/1999 4:12:00 AM
From: speedbot	Respond to of 1801

I am a true believer. :)

To: neverenough who wrote (204)	7/19/1999 4:17:00 AM
From: speedbot	Read Replies (1) \| Respond to of 1801

Float basics: Average daily volume for FFIV is currently 552,600 so based on this figure the entire listed float would take under 6 days to cycle. Thus, I identify FFIV as having a "fast" float. ie, explosive. Any research on this company will reveal what an great long term hold it presents. From day one F5 begins accumulating true believers in the company who lockup shares with their long term philosophy. This group cycles as well, but at a much slower rate. My conservative estimate is that a minimum of 1 million shares or 1/3 of the float is safely tucked away in these good hands. Thus a float of under 2 million remains. The last two days had a combined volume of 3.02 million shares. If you check the charts at least 2 million of these shares were purchased in a range of 70-85 & are considered safely tucked away for at least the short term. ie if Jon Doe purchased 100 shares at 77, 90% chance that he will not sell for a loss thus "locking up" his 100 shares short term. Basic psychology helping to squeeze the float. The most important factor is group/theme strength. Imagine a school of fish swimming together. That is exactly what the street is focusing on. The marketmakers, money managers, everybody. Period. & the hot group right now is the infrastructure group. This assures that volume & money flow will continue thus making the figures listed above even tighter. Realistically, there is probably between 500-100k shares available for trading. The mm are desperate for shares & have to resort to the underhanded tactics seen at Friday's close. They are running out. Now simple supply & demand come into play. Issues such as CSCO trade in spreads of 1/16's & 1/32's. Why? Because it's float of 3.16 billion guarantees that supply will always match any demand. FFIV has seen spreads of nearly 2 points. Why? Because demand is overwhelming supply. FFIV shares have become a rare & precious commodity. A bidding war ensues. This "critical mass" is what will cause a stock to have radical +20 swings & just another reason why I have locked away my FFIV shares. All JMHO. s