Tuesday, December 24, 2013

Small Float, Shorts Seen Helping Fuel Twitter - WSJ

Small Float, Shorts Seen Helping Fuel Twitter -- Market Talk
Dec 24 at 07:36
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      7:36 EST - As Twitter (TWTR) shares increasingly defy Wunderlich's bearish
stance on the company's valuation, the investment bank admits, "It appears
valuation metrics are irrelevant and that investors are betting aggressively on
Twitter being the next great media-technology platform." Shares have more than
doubled from the $26 IPO price last month, including a 55% pop in December
that's include six 5%-plus daily climbs and only 5 down days. Wunderlich says
TWTR's small float (just 11% of fully diluted shares are currently tradeable)
and 22% of that float being held short as of Black Friday "is creating a
significant leveraging effect" on the stock. All told, "$5.2B of public
investor capital" is supporting TWTR's $46B market cap.

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