FIT

Just want to get this straight.

Shares outstanding are 246,574,000. According to http://www.nasdaq.com/symbol/fit/short-interest the shares held short as of 3/15 were 31,525,031. That’s around 13%.

What does the float have to do with anything?

Also, isn’t now when you want to buy? BEFORE the short squeeze?

From the FIT’s last regulatory filing.

As of February 19, 2016, there were 137,971,036 shares of the registrant’s Class A common stock outstanding and 78,035,345 shares of the registrant’s Class B common stock outstanding

So the shares outstanding number I saw posted was for the Class A common shares. The Class B common shares are held by insiders and carry ten times the voting rights as Class A common shares. The Class B common shares can be sold by insiders but first need to be converted to Class A common shares.

What does the float have to do with anything?

From Investopedia

“…if the float is small and the majority of stocks are owned by insiders, a sell-off could pose a threat to stock price for common shareholders.”

http://www.investopedia.com/ask/answers/011415/what-differen…

Now, high insider ownership can be a sign the insiders have a lot of faith in the company’s prospects but that is usually not the case for a company that recently went public.

Wiseguy

From the FIT’s last regulatory filing.

As of February 19, 2016, there were 137,971,036 shares of the registrant’s Class A common stock outstanding and 78,035,345 shares of the registrant’s Class B common stock outstanding

So are you saying that the float is 64%? 137.97M / (137.79M + 78M)

Also that’s only 216M shares. Where are the other 30M or so? Remember: http://discussion.fool.com/where-are-you-finding-those-numbers-t…

And does anyone know how to read this?

Common Stock
In connection with the IPO, the Company established two classes of authorized common stock, Class A common stock and Class B common stock. All
shares of common stock outstanding immediately prior to the IPO were converted into an equivalent amount of shares of Class B common stock. As of December
31, 2015, the Company had 600,000,000 shares of Class A common stock authorized with a par value of $0.0001 per share and 350,000,000 shares of Class B
common stock authorized with a par value of $0.0001 per share. As of December 31, 2015, 99,416,351 shares of Class A common stock were issued and
outstanding and 115,365,222 shares of Class B common stock were issued and outstanding. As of December 31, 2014, the Company had 230,400,000 shares of
common stock authorized for issuance and 40,875,583 shares issued and outstanding.

So are you saying that the float is 64%? 137.97M / (137.79M + 78M)

No, I am not saying that. Some of those Class A shares (the 137.79M number) are held by insiders with restrictions on selling. The number of Class A shares available for trading to non-insiders on the open market (the float) is less than 137.79M.

I am saying there are a lot of insiders sitting on Class A and Class B shares that are probably looking to sell their shares to get their payday from the IPO.

Wiseguy

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Some of those Class A shares (the 137.79M number) are held by insiders with restrictions on selling. The number of Class A shares available for trading to non-insiders on the open market (the float) is less than 137.79M.

Is there any way to find out how many shares of Class A stock are available for trading to non-insiders? I assume no Class B shares are available to non-insiders?

I still can’t figure out why these amounts only add up to about 216M of the 246.6M diluted shares reported on the last quarterly report. Any idea on that?

http://www.j3sg.com/Reports/Stock-Insider/generate-Instituti…

http://www.wikinvest.com/stock/Health_Fitness_Corp_(FIT)/Dat…

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Is there any way to find out how many shares of Class A stock are available for trading to non-insiders?

The float is the number of shares available for trading to non-insiders.

I look it up on Yahoo! Finance.

http://finance.yahoo.com/q/ks?s=FIT+Key+Statistics

Or, The Motley Fool

http://caps.fool.com/Ticker/FIT/Stats.aspx?source=icasittab0…

Or, The Street.Com

http://www.thestreet.com/quote/FIT/details/company-profile.h…

However, all these sources probably pull the number form the same database somewhere.

I assume no Class B shares are available to non-insiders?

From what I read, yes. That is how the insiders maintain control of the company as the “B” shares have ten times the voting rights as “A” shares. I read insiders need to convert the “B” shares to “A” shares before they can be sold on the open market.

http://seekingalpha.com/article/3958185-fitbit-shorts-surge-…

I still can’t figure out why these amounts only add up to about 216M of the 246.6M diluted shares reported on the last quarterly report. Any idea on that?

I have no idea. I keep seeing the 216M number. Here is the statement form the annual report.

“As of February 19, 2016, there were 137,971,036 shares of the registrant’s Class A common stock outstanding and 78,035,345 shares of the registrant’s Class B common stock outstanding.”

http://d1lge852tjjqow.cloudfront.net/CIK-0001447599/f7a564df…

Can you send a link for where you found the 246M number? I cannot find that number on the stats sites I use.

Wiseguy

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However, all these sources probably pull the number form the same database somewhere.

Well it’s interesting that Yahoo says 22M and the others say 36M…I guess I’d really like to go to the source, but I just don’t know how.

I mean on 3/1 there were 40M held short. In light of that, I’m not even sure how the 36M number makes sense.

But let’s go with it for now. 36M is a tiny fraction of 216M or 246M or whatever. In one sense, gotta like the insider ownership, aligning their interests with ours, but I agree the “cashing in” threat makes sense – I could see that driving the price lower. But at this point I would think even insiders would want to wait to “cash in” until the shares are buoyed by actual results. I hate to call a bottom, but I guess I just don’t feel intrinsically it makes sense for the price to go lower. Unless there’s some kind of weird PN-type situation.

But thanks for pointing out that potential for downward pressure.

Can you send a link for where you found the 246M number? I cannot find that number on the stats sites I use.

See if this link works: https://s2.q4cdn.com/857130097/files/doc_financials/Earnings…

Look for diluted shares (non-GAAP) on the third page.

I think they are calculating this diluted number using the Treasury Stock Method (http://www.investopedia.com/terms/t/treasurystockmethod.asp), and that the actual number of options/warrants/whatever is more like 45M (the 44.1 number from your Seeking Alpha article…plus a few things?). Either way, that’s interesting. But the float is what I really want to get to the bottom of.

I think Paul is looking at a projected share count for end of Q1.

https://investor.fitbit.com/press/press-releases/press-relea…

You could ask FIT investor relations about it, if it matters a lot to you. But I suspect that they anticipate the share count will increase a bit as Fitbit execs sell new stock awards.

I think Paul is looking at a projected share count for end of Q1.

No, it’s Q4 2015. Basic shares out were 210,438, and non-GAAP diluted (which is what I’ve been quoting) were 246,574.

It’s all right here:

https://s2.q4cdn.com/857130097/files/doc_financials/Earnings…

If anyone’s wondering why the double digit jump today, my guess is this:

https://investor.fitbit.com/press/press-releases/press-relea…