RE:RE:RE:RE:The week aheadinfoisgoodman wrote: I very much disagree with your statement;” Most index funds and most Technology and science mutual funds will need to take a position in this company simply to fulfill the requirements of their charters.” First off nobody “needs” anything. There’s no shortage of mutual funds out there that don’t own Apple or Amazon and they are doing just fine. Also a mutual fund doesn’t decide anything, the manager of the mutual fund does and that is usually one person. I have seen time and time again that a mutual fund manager knows about a very good company such as Pyrogenesis but will not invest in the company not because of the price of the stock or any “charter” but because the share float is too small or a company is too thinly traded. Managers like to see millions of shares traded per session because liquidity is often more important than quality. If a mutual fund wants out they have to be able to get out. As an example I heard a mutual fund manager speak a couple of years ago about this. He laughed about a competitor manager because everyone knew he owned shares in a small company and every time the competitor tried to sell his shares the other managers would screw around with him and offer him a brutal low bid or just take all of their bids of the table so that the competitor could never sell his shares. Pyro is a small company and very thinly traded and although it seems to be a solid investment (personally I love this company and think it’s amazing but I am a small retail investor) it’s more of a boutique investment for many managers, too small and illiquid and therefore too risky regardless of the quality of the company. I have heard far too many mutual fund managers talk about this exact point. “It’s a fantastic company, it’s amazing, it makes money hand over fist etc.” but they won’t touch it because it’s too thinly traded. It’s for this reason that the upgrade from the venture isn’t going to give it the boost that many think.
i agree with much of what you have written, and you certainly make some very valid points
however depending on a funds charter and specialty
it may be required to take a position
in certain stocks, if all the various funds in this category with their hundreds of millions available
in financial resources want to take a small interest in this company would you not think that several millions of dollars attempting to buy shares would not put upward pressure on this stock's share price.
Additionally many funds partake in "windowdressing" in which they take a position in a company
simply so they can advertise that they have it as one of their holdings even if it is a very small one
Finally if PYR is as successful as most of the posters on this board hope and the stock price grows to let say $15-20 range (projected 2021 annual earnings of $0.50 per share, X P/E ratio of 30 ) a stock split may be in order in which that would help eleviate the share supply demand and further be a catalyst to the share price