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To: BARRY ALLEN who wrote (4007)	5/23/1999 8:45:00 PM
From: garden_man	Read Replies (2) \| Respond to of 4891

As I continue to watch from the sidelines and see the increase in shares outstanding over the last year, I am posting this for reference. The Trader May 21 1999 11:36AM CST Archives... Total Shares and the Float: Why This is Important by Ron Worley Senior Analyst / Contributing Editor There are two categories of shares to be concerned with: Shares Outstanding - The total number of shares issued Total shares minus the shares not available for trading represents the float. The Float then is the actual number of shares available for trading. The float determines the supply available when demand picks up. It follows then, that lower floats (all things being otherwise equal), have the effect of magnifying demand when serious institutional buying arrives. If you are choosing between a stock with 200 million shares in the float and one with a 5 million float, the smaller float will give the better price performance if most things are roughly equal. Think of it like this: it takes a lot of buying to move, say, an Exxon ( XON ) 1 point. The equivalent amount of buying of Telescan ( TSCN ) would make it pop furiously. Research has shown that the average capitalization of top performing stocks during the study period was just under 12 million shares! The median stock had 4 1/2 million shares outstanding before making a major advance. Watch also for insider buying. It shows faith in the company's future while helping reduce the float. Float reduction will automatically increase the earnings per share rank. It is increasing EPS rank that drives the price growth of outstanding companies.