RE: [CANSLIM] Institutional Ownership

From: Dave Cameron <dfcameron@yahoo.com>
Subject: RE: [CANSLIM] Institutional Ownership
Date: Mon, 12 May 2003 04:41:25 -0700 (PDT)

Next Article (by Author): [CANSLIM] CANSLIM List FAQ (Monthly Posting) "Katherine Malm"
Next in Thread: Re: [CANSLIM] Institutional Ownership Spencer48@aol.com
Articles sorted by: [Date] [Author] [Subject]

Even though I'm not Katherine (and I see she has already responded),
I'd like to weigh in here with something that doesn't exactly answer
the question - but is obliquely related.

If the float is particularly low - because a good chunk of stock is
owned by insiders (as contrasted to institutions), a dramatic shift
in the stock price is more likely than if the float is high.

Take a look at a graph of USNA over the last 3-5 years
(www.bigcharts.com can do this).   USNA is roughly 65%-70% owned by
one man - the founder.   Their business model has been consistent
over the last several years, yet the stock price is all over the
place (although it does trend well).   Its been picked up on CANSLIM
screens several times.   I owned it on a couple occasions, and always
lost money.   If I'd held it since the initial purchase, I'd have
been ahead though.

Anyway... its just one example, but my experience is that if
institutional ownership is really low because the shares are
concentrated in one hand, then wild fluctuations are more likely.

>   -----Original Message-----
>   From: owner-canslim@lists.xmission.com
> [mailto:owner-canslim@lists.xmission.com]On Behalf Of Duane Runnels
>   Sent: Monday, May 12, 2003 1:03 AM
>   To: canslim@lists.xmission.com
>   Subject: [CANSLIM] Institutional Ownership
> 
> 
>   Katherine,
> 
>   While I understand "I" is not a deal breaker, is there some level
> of
> institutional or Mutual Fund ownership that would scare you from
> buying a
> particular stock?  For instance, tonight I was looking at some
> prospects, but
> shied away from them when I saw IO > 80%.
>   Thanks for your perspective and thoughtful insight.
> 


=====
Dave Cameron
dfcameron@yahoo.com

__________________________________
Do you Yahoo!?
The New Yahoo! Search - Faster. Easier. Bingo.
http://search.yahoo.com

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.