tightly held?, page-5

Guys,

The term "tighly held" means that there is only a small free float. In other words, the large majority of shares are in the hands of those who currently have no intention of selling.

The key thing is, "no intention of selling".

Simply having a number of large holders does not constitute a tightly held stock. In fact, it could mean quite the opposite, and a weak share price if one or more of these large holders have short term intentions of selling.

As I see it, there is no indication that LRC is a tightly held stock. A glance at the market depth will show that there are plenty of sellers. Sure, a large number are in the hands of directors and other corporations, but we have no indication that these guys are in for the long haul.

In fact, the huge turnover last Wednesday could well have been caused by one or more large holders selling, rather than pump & dump, as claimed by some posters.

Time will tell.

ST