Re: [CANSLIM] Institutional Ownership

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: Re: [CANSLIM] Institutional Ownership
Date: Tue, 11 Dec 2001 13:40:52 -0600
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>>> Boucher says 1 - 16% is optimum (fuel), 35% max, David Ryan (an
successful
> student of Oneil, interviewed in market wizzards) says 1 - 20%.

Thanks, Andreas. That seems a good number to keep from being "overowned."

> Boucher adds Banks and Fonds

That's what I was thinking would make sense. I've sent a feedback to DGO
about total institutional vs. mutual fund ownership in their scans.

>>That's the reason why I bought ECTX (15% Banks and Fonds, less shares
outstanding)

Your comment confused me, so just want to be sure I understood what you were
saying. The numbers on DGO show % funds, % other institutions/banks as a %
of the float. In this case, float is 3.5m. Banks/Institutions own 15% of
3.5m or 525K shares. Not much.

The outstanding shares are total shares, float is a % of that. So, in this
case 3.5m float / 16.2m outstanding = 22% of the outstanding shares are in
float. That means institutions only own 0.525m/16.2m = 3.24% of outstanding
shares. Still nice and low either way, but much lower than the implied 15%.

>>instead of UTSI (50% Banks and Fonds)
Just to compare apples and apples. UTSI has 39.5m float, 106.9m outstanding,
50% of *float* is in institutional hands. That means they own 0.5*39.5m =
19.75m shares. That's 19.75m / 106.9m outstanding = 18.48% of outstanding.
Conversely, that will still qualify it for Ryan but not Boucher criteria,
and certainly much higher than ECTX. But it's not nearly as scary as the
idea that institutions own 50%!

Katherine

- ----- Original Message -----
From: "Andreas Himmelreich" <judgejimmy@web.de>
To: <canslim@lists.xmission.com>
Sent: Tuesday, December 11, 2001 5:23 AM
Subject: AW: [CANSLIM] Institutional Ownership


> Boucher says 1 - 16% is optimum (fuel), 35% max, David Ryan (an
successfull
> student of Oneil, interviewed in market wizzards) says 1 - 20%.
> Boucher adds Banks and Fonds.
>
> I do not like Stocks that have more then 30 - 40%, the stock then is
> already known to everybody.
> Thats the reason why I bought ECTX (15% Banks and Fonds, less shares
> outstanding) instead of UTSI (50% Banks and Fonds)
>
> > -----Ursprungliche Nachricht-----
> > Von: Katherine Malm [SMTP:kmalm@earthlink.net]
> > Gesendet am: Tuesday, December 11, 2001 6:25 AM
> > An: canslim@lists.xmission.com
> > Betreff: [CANSLIM] Institutional Ownership
> >
> > I've been playing around with the new filtering criteria in the beta DGO
> and wanted to get the list's point of view on institutional ownership.
> >
> > (1) The DGO filter only includes mutual fund ownership, rather than
total
> institutional AND mutual fund ownership. Do you see this as a problem?
> >
> > (2) Out of curiosity, I scanned for the following:
> >
> > Price>=$10; ADV>=90K; A/D = A, B, or C; Price > 50dMA 1% or more (can't
> do 0.00001!); Price > 200dMA 1% or more; mutual fund ownership >=10%; RS
> >=60.
> >
> > This is a wide net screen that looks for stocks performing relatively
> well and liquid enough to be in big hands. If liquidity were based on
total
> float the results might be different.
> >
> > This gave 717 names. When I started lopping off mutual fund ownership,
> the numbers of stocks were:
> >
> > 10-90% = 713 stocks
> > 10-80% = 712 stocks
> > 10-70% = 711 stocks
> > 10-60% = 708 stocks
> > 10-50% = 696 stocks
> > 10-40% = 634 stocks
> > 10-30% = 470 stocks
> > 10-20% = 227 stocks
> > 00-09% =  23 stocks (another bugaboo, can't scan for <10%)
> >
> > It seems like the primary concentration is around 10 to 40%. (But this
> may not mean much if it doesn't include all institutional holders.)
> > What would you view as a reasonable % ownership, neither too low nor too
> high, for a good CANSLIM candidate?
> >
> > Katherine
> >  << Datei: ATT00011.htm >>
>
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