RE:RE:RE:RE:RE:RE:Newbie Investor Here...There are pluses and minuses to a small float size, and I lean heavily toward smaller floats for sure. Any smallcap with more than 200 million shares is usually enough to keep me away, and I prefer less than 50 million.
Having said that,1.3 million shares fully diluted is extremely tight. On one hand, these shares could end up being like gold since there is a limited number of shares and no more are being created. Still, there are at least two drawbacks to such a tight float.
1) Institutional investors of even a modest size will be unlikely to buy in, since acquiring a few thousand shares puts them in a dangerous position if the company runs into a challenge and the fund needs to sell. With this so thinly traded, selling a few thousand shares would move the price exponentially. With a larger float and more trading, this problem decreases, so it's fair to say that a modest increase to the float might ATTRACT institutional investors.
2) If institutional funds are leery about investing, that means retail investors will continue to make up the biggest pool beyond management. And retail invetors have a psychological disposition to buying larger blocks of shares. This could become more of a problem if the share price rises beyond $100, since buying 100 shares would require ponying up $10,000, and that would prove difficult for small-time investors like me.
I'm not saying that management SHOULD increase the float size, but it's something that would be worth considering as the share price rises into the high double digits.
By the way, management has a controlling interest with more than 50% of the float. They will not sell to a larger firm unless they want to. The future is in their hands.
echo2 wrote: Completely agree, Shark.
There will be no stock split here.
It just happens to be very tightly held by insiders and others like me who have held for years because we believe in the amazing future for these technologies. That they have been able to do so well during these uncertain times in the mining industry shows how well management's plan is working out. Management is pacing themselves, and expanding sensibly at a steady pace.
They are in a sweet spot right now that should only get sweeter as environmental standards not just in NA but around the world get more restrictive and their technologies continue to be proven to be best in class.
BQE could easily be a $100,000,000 or more company in the next couple of years, or sooner if a larger player makes a move for them first, which, IMHO, would be a shame.
Congratulations to David and his team!