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Old 06-08-2006, 03:36 AM
slinger2424's Avatar
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Question 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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Old 06-15-2006, 03:14 AM
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I think this will come in huge when football starts and there are many times that a really bad team such as the 49ers will beat someone really good. Though the 49ers still have a huge float im sure it would make their stock jump high. Find the teams with the low floats even if they arent that good because when they do win it will pay off big. O yeah while im on the subject....Skins and Cowboys are gonna be good this year...just watch

Last edited by DewJunkie : 06-15-2006 at 03:22 AM.
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