Gus, irrespective of news, sheer weight of shareholder numbers means we are going to have constant sellers until the register is tightened via "lots of holders with small parcels" being converted to "fewer holders with larger parcels" which is something most small caps face.
We have approx 1,800 shareholders. If we exclude the top 20, we can say there are 1,800 shareholders owning approx 105 million shares. That's an average of 58,000 shares each. If you were to suggest that the holders would hold for an average of 3 years (which is overly conservative), you've got 600 shareholders who want to sell out each year. That's 12 per week (on average), which is 700,000 shares of selling pressure that needs to be taken out by buying, on average, each and every week. In a low turnover stock like KNL, that's a big "limiter" on price rises until it's matched by rerating events, and ultimately needs to be matched by serious (and longer term) buying.
Fortunately, that catalyst to start the different buyer profiles is arriving soon.
KNL Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
