Is the FLOAT important?
To me this is one of the most important parts of ASM on a financial aspect. Not looking at this and taking it into consideration can get you into some really bad buys, not even knowing it.
So how big of a deal is it?
Take two teams that are equal caliber:
Team A has a 1000 float
Team B has a 2100 float.
If they both are to pay out a $500 dividend payment, shareholders in Team A will get $0.50 while those holding Team B will get $0.24.
That is double the money for the lower float team.
This is probably one reason why you see better "quality" teams for a cheaper price per share. Take one look at the float. That is more that likely the reason.
Just look at the whole picture before you make a buy.
Team A is 250 Float for $15.00 a share while...
Team B is 2315 Float for $7.99 a share.
Many people would just buy Team B, but a closer look reveals that for $15.00 you can own 0.004% of Team A or that same $15.00 would get you about 0.00086% of Team B.
Never under estimate the power of the float. When all else fails, grab a calculator and do a little math. The results may surprise you.
If anyone has questions, comments, and needs help, feel free to post here or contact me personally. I would love to help anyone in need.
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