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To: HandsOn who wrote (14341)9/6/2001 11:27:53 AM
From: SpinCity1  Read Replies (1) | Respond to of 208838
 
good to see you also my friend!
Here is a question I have been pondering- what does the open short position do to the value of a stock? I have been thinking that the value of the stock becomes diluted because while the actual float has not increased but what I am going to call the "virtual float" has . For example if there were 10 million in the float and there are 5 million shares shorted the number of shares actually available to buyers was 15 million shares. If the company had an EPS of 1 when it had 10 million shares in the float, it really has a virtual EPS of about .65. Then the "virtual" PE changes also. SO the bottom line is that I think a whole lot of money (that I don't think is there) would have to flood into the market in order to move things up. Wadda you think?