I just did some research on the liquidity of Watpac.In the last...

I just did some research on the liquidity of Watpac.

In the last 12 months from (10 Jan 2011 to 10 Jan 2012) there was 53,116,500 shares traded. Total number of shares is 185,160,973. Therefore, total turnover/total shares is a low 28.7%.

Thus it is not a overly liquid stock with larger shareholders holding the stock tight (Kevin Seymour and others). Also there are very limited number traders of this stock.

So what does this mean? I believe it means:
1. To buy 18.3 million of this stock when only 53.1 million is traded each year will be very hard to do. Therefore, Watpac will have to buy constantly throughout the year if they are going to buy near 10%.
2. As more stock is brought, the volumes will likely decrease (given that larger players do not appear to sell), increasing the demand for each stock.
3. WTP is unlikely to fall below a $1 for the short term (hopefully forever) given that watpac will want to buy as much of the stock as possible and there would need to be some significant selling pressure to push the price that low.