[CANSLIM] Institutional Ownership calculation

From: "Katherine Malm" <kmalm@earthlink.net>
Subject: [CANSLIM] Institutional Ownership calculation
Date: Wed, 12 Dec 2001 22:26:44 -0600
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I wanted to clarify Boucher's calculation of institutional ownership. =
Wanted to make sure that the % guidelines were % of float vs. % of =
outstanding shares. I send a note to Boucher and received this reply =
from his contact:

=3D=3D=3D=3D=3D=3D=3D=3D=3D

Katherine, The institutional holdings we look at are based on the float =
and include mutual fund and bank holdings. The numbers are expressed as =
a percentage, and are revised as the floating supply changes. Daily =
Graphs defines floating supply as the number of shares available to the =
public and institutions, or total capitalization less insider positions =
and % held by management. I hope this clarifies things for you! Katie

Katie Townshend
Analyst
Midas Capital / Longboat Funds

=3D=3D=3D=3D=3D=3D=3D=3D
I also contacted DGO to clarify their process for calculating % funds, % =
banks/institutions, % insiders/management. Here is their reply:

The FUNDS and BANKS
information basically trickles in on a continuing basis all throughout =
the
year and is processed by our research department. This information comes =
in
on electronic feeds and is also gathered from Proxy Reports filed with =
the
SEC. Many funds also report their holdings at the end of the quarters =
and at
the half year mark. As this information trickles in, our research =
department
updates the database with the most current information available. The =
MGMT
data is obtained from the companies proxy statement filed with the SEC. =
The
proxy statement lists the management holdings and larger positions held =
by
individuals or other companies. This information is entered into the
database as a percentage of the outstanding shares. Due to timing issues =
and
the fact that the proxy statement is only filed once each year, the
presentation based on the total outstanding shares provides a better
representation of this figure. This also takes into account previous =
splits
or stock distributions which may affect the raw data.

Sincerely,
Frank
Daily Graphs Online

=3D=3D=3D=3D=3D=3D=3D=3D
And just in case, here's the definitions involved:

FLOAT
Number of shares available to the public and institutions. (Total
capitalization less insider positions and % held by management). If no
figure appears, all shares outstanding are considered to be the floating
supply available for public trading.

MANAGEMENT HOLDINGS (MGMT)
Represents the amount of the total outstanding stock (capitalization) =
that
is held by management.

MUTUAL FUND SPONSORSHIP (FUNDS)
Represents the % of stock owned, by mutual funds, of the floating supply =
of
stock (total shares outstanding less insider positions and percent held =
by
management).

BANK SPONSORSHIP (BANKS)
Represents the % owned by banks of the stock's floating supply of stock
(total shares outstanding less insider positions and percent held by
management).

The FLOAT is the amount of shares available to the public and =
institutions.
Since insider positions and management holdings may be under trade
restrictions or in other situations in which they are held and not =
actively
sold, they are not thought of as generally available for purchase or =
sale to
the public or institutions. The FUNDS and BANKS figures are based on =
that
amount of shares that is available for trading, the FLOAT, since this is =
the
available stock that they may their purchases from.






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<DIV><FONT face=3DArial size=3D2>I wanted to clarify Boucher's =
calculation of=20
institutional ownership. Wanted to make sure that the % guidelines were =
% of=20
float vs. % of outstanding shares. I send a note to Boucher and received =
this=20
reply from his contact:</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial =
size=3D2>=3D=3D=3D=3D=3D=3D=3D=3D=3D</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT>&nbsp;</DIV>
<DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001>Katherine, The=20
institutional holdings we look at are based on the float and include =
mutual fund=20
and bank holdings. The numbers are expressed as a percentage, and are =
revised as=20
the floating supply changes. Daily Graphs defines&nbsp;floating supply =
as the=20
n</SPAN>umber of shares available to the public and institutions<SPAN=20
class=3D310342216-12122001>, or t</SPAN>otal capitalization less insider =
positions=20
and % held by management.<SPAN class=3D310342216-12122001> I hope this =
clarifies=20
things for you! Katie</SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 =
size=3D1></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1>Katie =
Townshend<BR>Analyst<BR>Midas Capital /=20
Longboat Funds</FONT></SPAN></FONT></FONT></DIV><FONT face=3DArial><FONT =

size=3D2><SPAN class=3D310342216-12122001><FONT face=3DArial =
color=3D#808080=20
size=3D1></FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 =
size=3D1></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT color=3D#000000=20
size=3D2>=3D=3D=3D=3D=3D=3D=3D=3D</FONT></FONT></SPAN></FONT></FONT></DIV=
>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT color=3D#000000 size=3D2>I =
also contacted DGO=20
to clarify their process for calculating % funds, % banks/institutions, =
%=20
insiders/management. Here is their=20
reply:</FONT></FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT color=3D#000000=20
size=3D2></FONT></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3>The FUNDS and BANKS<BR>information basically trickles in on a =
continuing=20
basis all throughout the<BR>year and is processed by our research =
department.=20
This information comes in<BR>on electronic feeds and is also gathered =
from Proxy=20
Reports filed with the<BR>SEC. Many funds also report their holdings at =
the end=20
of the quarters and at<BR>the half year mark. As this information =
trickles in,=20
our research department<BR>updates the database with the most current=20
information available. The MGMT<BR>data is obtained from the companies =
proxy=20
statement filed with the SEC. The<BR>proxy statement lists the =
management=20
holdings and larger positions held by<BR>individuals or other companies. =
This=20
information is entered into the<BR>database as a percentage of the =
outstanding=20
shares. Due to timing issues and<BR>the fact that the proxy statement is =
only=20
filed once each year, the<BR>presentation based on the total outstanding =
shares=20
provides a better<BR>representation of this figure. This also takes into =
account=20
previous splits<BR>or stock distributions which may affect the raw=20
data.</FONT><BR></FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3>Sincerely,<BR>Frank<BR>Daily Graphs=20
Online</FONT></FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3></FONT></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3>=3D=3D=3D=3D=3D=3D=3D=3D</FONT></FONT></SPAN></FONT></FONT></DIV=
>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3>And just in case, here's the definitions=20
involved:</FONT></FONT></SPAN></FONT></FONT></DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3></FONT></FONT></SPAN></FONT></FONT>&nbsp;</DIV>
<DIV><FONT face=3DArial><FONT size=3D2><SPAN =
class=3D310342216-12122001><FONT=20
face=3DArial color=3D#808080 size=3D1><FONT face=3D"Times New Roman" =
color=3D#000000=20
size=3D3>FLOAT<BR>Number of shares available to the public and =
institutions.=20
(Total<BR>capitalization less insider positions and % held by =
management). If=20
no<BR>figure appears, all shares outstanding are considered to be the=20
floating<BR>supply available for public trading.<BR><BR>MANAGEMENT =
HOLDINGS=20
(MGMT)<BR>Represents the amount of the total outstanding stock =
(capitalization)=20
that<BR>is held by management.<BR><BR>MUTUAL FUND SPONSORSHIP=20
(FUNDS)<BR>Represents the % of stock owned, by mutual funds, of the =
floating=20
supply of<BR>stock (total shares outstanding less insider positions and =
percent=20
held by<BR>management).<BR><BR>BANK SPONSORSHIP (BANKS)<BR>Represents =
the %=20
owned by banks of the stock's floating supply of stock<BR>(total shares=20
outstanding less insider positions and percent held=20
by<BR>management).<BR><BR>The FLOAT is the amount of shares available to =
the=20
public and institutions.<BR>Since insider positions and management =
holdings may=20
be under trade<BR>restrictions or in other situations in which they are =
held and=20
not actively<BR>sold, they are not thought of as generally available for =

purchase or sale to<BR>the public or institutions. The FUNDS and BANKS =
figures=20
are based on that<BR>amount of shares that is available for trading, the =
FLOAT,=20
since this is the<BR>available stock that they may their purchases=20
from.</FONT><BR></DIV>
<DIV><BR></DIV>
<DIV><BR></DIV></FONT></SPAN></FONT></FONT></BODY></HTML>

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