What is your Stock's Personality
What is Your Stock's Personality?
How Fast Are Its Available Shares Changing Hands?
How Volatile Is It? A stock's volatility is inversely correlated to its
float. The smaller the float the
more volatility the stock. Float Analysis shows that the smaller the float turnover the
more volatile a stock will be. Thus Stocks are different, one to
another; they have personalities
and Float Charts dramatically
show this by showing how fast or slow their floating supply of shares are
changing hands. Steve likes to compare
stocks to the animal kingdom. Big cap stocks like General Electric (GE)
have such large floats that it can take months and years for the float to
turnover once. They are like big dinosaurs that move slowly. At the
opposite extreme are stocks that are like buzzing bees. Look
at the two charts below of General Electric (GE) and Tasr Inc. (TASR) TASR
is a buzzing bee. It has a float of 51.8 million
shares. Those 51.8 million shares are changing hands every few days.
Each gray rectangle is a float turnover and shows you the time it takes for one
float turnover.
Now look at GE. It's a dinosaur, it has a floating supply of 10.4 BILLION
shares. It takes almost two years for all its float to turnover. The chart
of GE is a Monthly chart. The gray rectangle shows you the amount of time
it takes for it to go through a turnover of its float. TASR
is a very speculative and volatile, GE is not. 
|