Unfortunately
there’s no precise answer to this question although potential investors should
be aware that the more outstanding shares a small company has, the more buyers
it takes to move its stock price higher.
SmallCapPower.com
spoke recently with newsletter
writer Thom Calandra, who shared his thoughts on this topic. He said:
“So
who are the companies that are doing the best? It’s the companies that are not
financing through equities. They’re even selling part of their asset or they’re
using debt in a creative way that doesn’t suck down equity, you know, as in
swaps. They are doing partnerships, once again, asset sales, deep pocket
investors from Japan or other off-take countries that might take industrial
metals. Anything but equity financing, stay away from any company with a share
base that’s above 70 million or 80 million shares.”
