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Posted On: 08/02/2019 11:25:50 AM
Post# of 87109
Junebug, that is a good explanation of what is meant by the float will dry up.
While we do not know all the steps Doctor Dalton might take to "dry the float up," we can make a few guesses. First, one must look at all the possible shares available, and we come up with a number of just under 1.2 billion shares based on the last reported numbers. Estimates by many (including myself) indicate a reasonable number of free trading shares is around 340 million, and I believe this is the number that is important. Of that number, Doctor Dalton owned over 40% based on that same report. If one examines trading volume and movement, this float number is very nearly owned by the longs and by Doctor Dalton. We do not know if Dalton has purchased more, but that alone could easily dry the float up with even modest purchases every day.
Without going into too much detail, imagine if Dalton cancelled and retired all shares beyond the float. Such an action would logically mean our shares would then be worth approximately 3.5 times their current value, and I would expect a run-up in price on such an announcement (the run-up could be multiple times the 3.5 multiplier).
We could also have a share buy-back and retirement as another example. The point is, our shares would be worth a whole lot more.
Kgem
While we do not know all the steps Doctor Dalton might take to "dry the float up," we can make a few guesses. First, one must look at all the possible shares available, and we come up with a number of just under 1.2 billion shares based on the last reported numbers. Estimates by many (including myself) indicate a reasonable number of free trading shares is around 340 million, and I believe this is the number that is important. Of that number, Doctor Dalton owned over 40% based on that same report. If one examines trading volume and movement, this float number is very nearly owned by the longs and by Doctor Dalton. We do not know if Dalton has purchased more, but that alone could easily dry the float up with even modest purchases every day.
Without going into too much detail, imagine if Dalton cancelled and retired all shares beyond the float. Such an action would logically mean our shares would then be worth approximately 3.5 times their current value, and I would expect a run-up in price on such an announcement (the run-up could be multiple times the 3.5 multiplier).
We could also have a share buy-back and retirement as another example. The point is, our shares would be worth a whole lot more.
Kgem
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