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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (27281)	4/16/1999 1:27:00 PM
From: Gregg Powers	Read Replies (3) \| Respond to of 152472

Jason: We are a modest sized ($2.5 billion) institutional investor and, I for one, am sick to death listening to people talk about 'float' (I am directing this at my industry, not you Jason). The "float is too small" argument is the biggest pile of crap every to come down the pike. Do you know what an institutional investor really means when he says the float is too small? He is really saying that he has no confidence in his analysis, so he wants the stock to trade well so that he can get out in a hurry if he is wrong. I would rather take the time to understand what I was buying in detail; to understand why it is undervalued; what is going to change; how the business going to evolve etc. Then we can make an investment with a three-to-five year timeline...and not be worried about float or liquidity. I LOVE STOCKS THAT TRADE POORLY. Remember when Qualcomm barely traded 600,000 shares a day? Liquidity was relatively poor for a $4.0 billion market capitalization. The institutions were disinterested; the sell-side analysts didn't understand the story; retail investors either hadn't heard the story or didn't believe it. Bang. Now that the stock is liquid, and trading like water, its stock is three times higher. That's one hell of a price to pay for liquidity. I place a very low value on liquidity and/or float. Again, enough pontificating. All the best, Gregg