Will Santa Claus float his Santa Cam Business on the stock market?

by Super User
Internet rumours that Santa Claus is due to float his 'Santa Cam' service on the stock market in the autumn are still to be confirmed by Santa and his North Pole head quarters. Internet rumours that Santa Claus is due to float his online web cam Santa Cam service Santa CCTV on the international stock market (Financial Times April 2016) has neither been confirmed or denied by Santa Claus today.

In a statement from his North Pole wonderland, head of communications and business management Julia Mcfarland said in a statement: 'Due to the information being potentially stock market sensitive, we are currently unable to confirm the floatation of 'Santa Cam World' on the stock markets. As soon as we are in a position to confirm the floatation we will do so via the press release section of the Santa Claus website. We thank you for your patients in this matter and will be keeping all stakeholders informed as much as possible.'

Santa Claus announces launch of New Christmas TV Channel called SSC1 (SECRET SANTA CAM 1) Stock market analyst Steve Brooks said on his blog: 'This seems like a leak from within Santa's North pole HQ. I can imagine all the elves are being interrogated to see where the leak originated and heads will roll' When asked if he thinks the leak will have a negative impact on the possible floatation of Santa Cam World he replied: 'absolutely not, a lot of people today will be scratching there heads and watching as this story univalves. I think a lot of people will be wanting to buy a share in this lucrative business.'



Some information about the Floatrtion of Santa Cam service:

We asked santa: What exactly does it mean when people refer to a company's "float", and why might the size of a company's float have a direct impact on how the stock trades?

First off, what exactly is a "float" Santa?

To understand what a float is, we first need to explain what "shares outstanding" mean. "Shares outstanding" are the total number of shares that a publicly traded company has. These include shares owned by insiders and large institutions, plus "restricted" shares and the float.

The float represents the shares of the company that are "freely" tradable. Meaning, the shares other than those held by institutions or other owners totalling more than 5% of the company, restricted shares and insider holdings. Let's take a look at a real world example. Simtek Corp. (SMTK) currently has 16.51 million shares outstanding. If you multiply the number of shares outstanding by the current share price (£1.71), you are left with a total "market cap" of £3.48.40 million pounds.

Now, Santa has 9.22 million shares in its float. This means that after backing out shares held by owners that total more than 6% of all shares, restricted shares and insider holdings, we are left with 11.55 million shares. This is the float.

Now why is the "float" important?

The smaller a float, the more volatile a stock can become. If a stock has one million shares in its float and announces really good news, the share price will soar due to their being hardly any shares in the float. If there are hardly any shares in the float, this means that shares are harder to buy and the price to buy shares will go up. If the stock has a really big float, this would mean that the stock is prone to less explosive moves. A stock with a float of 200 million shares won't rise 100% in one day, but a stock with a float of half a million shares could.

Leave your comments

Comments

  • No comments found