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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Mike Milde who wrote (9697)7/27/1998 10:15:00 AM
From: Reginald Middleton  Read Replies (1) | Respond to of 74651
 
<Pick a small company with a small percentage of institutional investors. Then follow the news and watch the share price. You will see large swings in share price when there are no fundamental changes in the company or the industry. Why??>

A small float leaves a company succeptible to market manipulation. So if the guy that makes a market in XX stock, and he is mad because the trader at the company next store took his girlfriend, he can drive that guys inventory down (this is a true story btw). Pick a medium or large sized company and observe it for 1 year or longer, and you will find that fundamentals are practically the only thing that has driven the stock.