Hi all, I’ve been thinking a bit about how much money we “move” as a board and wondering if we are responsible for creating momentum for some of our smaller stocks. Full disclosure, I have no idea how much of an increase in volume the algorithms look at to start piling into a stock. I was surprised that for some of our smaller stocks like Talend it only takes four hundred thousand dollars to be responsible for 10% of the days volume. Our medium sized stocks are in the 1-2 million dollar ranges. Something like SHOP is in the 40 million dollar range to be 10% of the volume.
Stock Average Volume Stock price Money need to be 10% of volume
HUBS 440000 85 3,740,000
TLND 88000 42 369,600
UBNT 325000 65 2,112,500
LGIH 298000 60 1,788,000
INST 460000 34 1,564,000
HDP 670000 16 1,072,000
SHOP 4100000 100 41,000,000
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sorry that formatting was cruddy.
I didn’t mean to imply we aren’t buying great companies. I’m just wondering if they are getting outsized short term price appreciation because of the money from this board. My feeling is maybe on some of the small stocks in the short term…but in the long term it is up to the company to perform or not.
best,
Ethan
Yeah,
The one share of Amazon I am holding moved the needle.
Cheers
Qazulight
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I’m just wondering if they are getting outsized short term price appreciation because of the money from this board.
Doubtful. On the ohter hand the Rule Breaks and SA members abosolutely move small stocks. You get a rec out for a small company at noon and you can truly see how everyone is jumping in. This was hugely obvious with SWIR a few years ago. (and a few more I have seen). RB now emails out the recs after hours so everyone gets a fair shot at it. (for the noon releases, some people got emails well before others).
We tend to spread out over time, even if Saul does release once a month. Do we have enough heft to move a stock over time? If all the active people on this board bought $200K of each stock, I don’t see how that would effect many of them.
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