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Meaning of corner stock
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ChinChye
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05-Aug-2007 21:32
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Hi elfinchide, Thks for providing an alternative to calculate the free float... Hmm.. Is the free float formula correct? Cheers, Anything. |
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elfinchilde
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05-Aug-2007 18:47
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hi chinchye, generally (going by victorian's numbers), you'd consider a stock cornered if 70% or more is in the top twenty shareholders hands, and when the sellers dictate the px rather than the buyers (ie, more ppl want to buy but few want to sell). note that top twenty shareholders need not be related to the company, since if all the company's directors/related own 70%, then they're requested to make a GO for the stock. your minus-ing thing is in estimating free float (ie, amt available to the retail public): if it's negative free float, means the stock is just changing hands between ppl, but likely BB are not selling already; have kept it locked up. quite difficult to ascertain this tho, since unless you track the counterparty, it might or might not be one of the top 20 selling/buying. can just be retail noise. eg, jade and a few others were in severe negative free float before the trading curbs. means ppl churning the counter. hope this helps. :) |
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ChinChye
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05-Aug-2007 13:59
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Hi all,
I am still not clear on the corner stock theory... Is this formula correct?
Total shares in issue - Top 20 shareholder shares = Balance
Then Balance - Daily volume = X , so if X turns from positive to negative... meaning the stock is conered??
Kindly advise.. thks alot..
Cheers,
Anything .
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