valuation and reality, page-13

Champ the number of shares on issue does make a difference:
1) To the way its bustled and moved about and manipulated by traders .
2) It can hamper the progress of an sp becuase its too liquid. I.e. Its so easy to get in and out of a stock for very little gain/loss as there's always plenty on the buy/sell sides.
3) Large qty's of shares is also negatively viewed by some, a lot of large institutions and so no matter how good the potential is they won't touch it.
4) Some institutions will view it as a penny dreadful even if the market cap was over a billion dollars or more because with each minor sp movement it can effect the value of the company dramatically.
5) You'll find that the sophisticated investors will be more inclined to dump and take the easy profit from the 5.5c than to hold because they know its easy to pick up shares whenever they feel like it.
I'm sure others can add to this but it does have a negative effect on the growth of the sp and thus it is an important factor which will need to be addressed by the company in the future.