sack the board part 2, page-8

mostlyright wrote:"On my calculations on volume and price over the last month it would take you roughly 1 month to mop up 5% at 5 cents."

But you have to include churn. The shares that are available to be bought at the moment, how many times have they been sold in the last month? My guess is that there are a lot of shares turning over every few days, because of day trading etc (I know some ppl have said that this isn't a good day-trade stock atm).

So while adding up the volume for the last month might put you at the 5% figure, you have to take into account in your calculation the volume of those shares which are "homeless" shares moving from one account to another on a regular basis, versus the stable shares that are sitting in someone's bottom draw account.

I stick by my original estimate - you'd need to get to at least 10c to pry 5% of the total shares from the hands of holders.

Btw this same question has been asked numerous times before on CTP "wouldn't someone just buy the company for xxx as that's the market cap". Each time I re-iterate - the current share price is just the lowest amount that any shareholder was prepared to sell for. Alternatively it's also the highest amount anyone was prepared to pay (or needed to pay for those on sale).

- Karl