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To: Fredman who wrote (114)	7/28/1998 12:45:00 AM
From: Druss	Read Replies (3) \| Respond to of 253

Fred--A small float has a number of effects. It tends to substantially increase the beta, it makes shorting dangerous because it is easier to get squeezed, it makes it easier to manipulate the share price, and it can leave you very vulnerable to management decisions to sell stock (either personally or for the company to do so to raise money). With a huge percentage of the available shares tied up in the hands of the company or insiders you can be at risk of having them double or triple the outstanding shares of a small float company. It is also a good idea to monitor institutional ownership for these reasons too. Institutions can tie up a lot of shares that are in effect in very few hands. All the Best Druss

To: Fredman who wrote (114)	7/28/1998 8:03:00 AM
From: Reginald Middleton	Read Replies (1) \| Respond to of 253

<What, if anything, do you give consideration to when you see the number of shares outstanding, in float, etc. ??? I know, or at least THINK i know, that the more shares mngmnt holds the better, because the logic is mngmnt-owned shares increase the likelyhood of mngmnt doing what they can to preserve the value of the company (their stock) because it is in their financial best interests to do so, or is this a farce ??> The number of shares outstanding do not always correlate with the number of shares held by management. This being the case, I suggest that you remain very specific in indicating ownership, float, etc. The more management owns of corporate stoclk, the more aligned mgmt.'s interest are with shareholders, and the less subsceptible shareholder's are to hubris syndrome (mgmt. acting undefeatable since they are not playing with thier own money).