gold value, page-3

Just a quick look at the rough numbers regarding the supply of shares available for AMX at present :

Top 20 as per 2011 annual report show just under 200million shares held by this cohort. So lets assume with Taurus buying and a few others adding, this number is now more like 200million shares even.

Within the retail/private holders I would estimate that at least 5% of the company is held in safe hands = 12 million shares.

Directors/insiders not in the top 20 - probably another 5million shares or so.

So roughly about 220million shares are held by those that are none-sellers or in stronger hands.

That leaves about 28million free shares floating around in the market. Not a lot at all .

If we assume taurus will take out another 6 million shares to get their holding to 20% - the free float drops to 22million.

So less than 10% of the float available to the market or around 22 million shares.

Another 5million shares are locked into short position currently , so the total drops to 17million available, but this could change fairly quickly.

What could having such small supply do to the share price ? well just look at what blackrock did to the shareprice back in 2010.....

If just one more fund decides to take a position from here and buys 5% or 12.5million shares , the supply gets extremely tight and orders will be very hard to fill.

There will be future cap raises for sure which will increase supply , but I think the vast majority of these shares will find a home straight into the top 20 to be honest... they usually get first dibs...