Go to Jeff Salisbury LWGate Home Page.From: Gene Ricci <genr@swbell.net>
Subject: Re: [CANSLIM] UCBH
Date: Thu, 15 Aug 2002 10:25:39 -0500
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Ann, my data source shows growth at 18, not too shabby for a bank...
Charley... I'm awaiting a definitive answer from IBD on institutional =
ownership. I've asked them what they count and what they don't count =
because of the significant differences in the 'numbers' from different =
data suppliers. My second question to them is 'why aren't banks and =
pension funds, etc. counted in their numbers.=20
In the Q&A below, IBD switches between calling it institutional =
ownership and mutual funds... if a bank isn't an institution why doesn't =
IBD just call it funds?=20
What is a level of institutional ownership you consider when =
buying a stock? If too many shares are already owned by institutional =
investors, can that hurt a stock's chances of rising?=20
=20
Answer=20
It is hard to tell how much institutional ownership is too much. =
Therefore, you should place less weight on this factor. Rather, focus on =
the quality of ownership. You want to see at least a few of the better =
performing mutual funds owning the stock you are considering buying. In =
some cases, however, if too many shares are owned by institutional =
investors, this could be bad. That's because it represents large =
potential selling if anything goes wrong with the company or the general =
market.
=20
----- Original Message -----=20
From: Chazmoore@aol.com=20
To: canslim@lists.xmission.com=20
Sent: Thursday, August 15, 2002 8:58 AM
Subject: Re: [CANSLIM] UCBH
Ann: I will give you my thoughts to get you started.=20
Fundamentally, the stock looks sound. You say they lost a fraud suit =
but for the time being the market has not reacted negatively. You didn't =
say when, but if it wasn't yesterday, I wouldn't put much weight on it. =
The market tends to respond very quickly to negative news.=20
You didn't state your investment goals, but in my opinion this is not =
a growth stock. For one thing if institutions own 91% now, there simply =
isn't enough stock available to new buyers to move the price =
significantly. That does not mean they cannot enjoy good steady slow =
growth. The funds own 31%; WON recommends staying below 25%.=20
The real positive for this stock is the Group RS rating, and the Price =
RS.=20
The negative is the very weak market.=20
Charley
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<DIV><FONT face=3D"Comic Sans MS">Ann, my data source shows growth at =
18, not too=20
shabby for a bank...</FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV><FONT face=3D"Comic Sans MS">Charley... I'm awaiting a definitive =
answer from=20
IBD on institutional ownership. I've asked them what they count and what =
they=20
don't count because of the significant differences in the 'numbers' from =
different data suppliers. My second question to them is 'why =
aren't=20
banks and pension funds, etc. counted in their numbers. </FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV><FONT face=3D"Comic Sans MS">In the Q&A below, IBD switches =
between=20
calling it institutional ownership and mutual funds... if a bank isn't =
an=20
institution why doesn't IBD just call it funds? </FONT></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<DIV>
<TABLE cellSpacing=3D0 width=3D"100%" border=3D0>
<TBODY>
<TR>
<TD class=3Dtextcell>What is a level of institutional ownership you =
consider=20
when buying a stock? If too many shares are already owned by =
institutional=20
investors, can that hurt a stock's chances of rising?</TD></TR>
<TR>
<TD><IMG height=3D6 alt=3D""=20
src=3D"http://investdaily.custhelp.com/rnt/rnw/img/trnsp.gif" =
width=3D1></TD></TR>
<TR>
<TD class=3Dsubtitle> </TD>
<TD class=3Dsubtitle>Answer</TD></TR>
<TR>
<TD class=3Dtextcell> </TD>
<TD class=3Dtextcell>It is hard to tell how much institutional =
ownership is=20
too much. Therefore, you should place less weight on this factor. =
Rather,=20
focus on the quality of ownership. You want to see at least a few =
of the=20
better performing mutual funds owning the stock you are =
considering=20
buying. In some cases, however, if too many shares are owned by=20
institutional investors, this could be bad. That's because it =
represents=20
large potential selling if anything goes wrong with the company or =
the=20
general market.<BR></TD></TR></TBODY></TABLE></DIV>
<DIV><FONT face=3D"Comic Sans MS"></FONT> </DIV>
<BLOCKQUOTE=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3DChazmoore@aol.com=20
href=3D"mailto:Chazmoore@aol.com">Chazmoore@aol.com</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, August 15, 2002 =
8:58=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
UCBH</DIV>
<DIV><BR></DIV><FONT face=3Darial,helvetica><FONT size=3D2>Ann: I will =
give you my=20
thoughts to get you started. <BR>Fundamentally, the stock looks sound. =
You say=20
they lost a fraud suit but for the time being the market has not =
reacted=20
negatively. You didn't say when, but if it wasn't yesterday, I =
wouldn't put=20
much weight on it. The market tends to respond very quickly to =
negative news.=20
<BR>You didn't state your investment goals, but in my opinion this is =
not a=20
growth stock. For one thing if institutions own 91% now, there simply =
isn't=20
enough stock available to new buyers to move the price significantly. =
That=20
does not mean they cannot enjoy good steady slow growth. The funds own =
31%;=20
WON recommends staying below 25%. <BR>The real positive for this stock =
is the=20
Group RS rating, and the Price RS. <BR>The negative is the very weak =
market.=20
<BR><BR>Charley</FONT> </FONT></BLOCKQUOTE></BODY></HTML>
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