Re: [CANSLIM] Inst Ownership

From: Chazmoore@aol.com
Subject: Re: [CANSLIM] Inst Ownership
Date: Fri, 16 Aug 2002 00:11:44 EDT

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Gentlemen, if I may guide this discussion back to it's beginning, I believe I
was the one who pontificated that IBD/DGO recommends no more than 25% mutual
fund ownership, because otherwise there would be inadequate institutional
capacity left to buy the stock when it started to move. In my opinion they
use mutual funds because they leave a paper trail, and the quality of
investment skill can be measured. Other institutions, for example life
insurance companies, are more difficult to evaluate.

For most public companies, institutions own most of the outstanding float,
maybe 80% to 90% (according to Yahoo). Since the bulk of the ownership cannot
be evaluated as respects investment skill and success, WON hones in on that
part that can be monitored; the mutual funds. He recommends mutual fund
sponsorship, but for growth stocks, he likes to see the percentage of
ownership at less than 25%, and the quality of mutual fund ownership, above
average.

But then, what do I know?

Charley

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<HTML>Gentlemen, if I may guide this discussion back to it's beginning, I believe I was the one who pontificated that IBD/DGO recommends no more than 25% mutual fund ownership, because otherwise there would be inadequate institutional capacity left to buy the stock when it started to move. In my opinion they use mutual funds because they leave a paper trail, and the quality of investment skill can be measured. Other institutions, for example life insurance companies, are more difficult to evaluate.
 
 For most public companies, institutions own most of the outstanding float, maybe 80% to 90% (according to Yahoo). Since the bulk of the ownership cannot be evaluated as respects investment skill and success, WON hones in on that part that can be monitored; the mutual funds. He recommends mutual fund sponsorship, but for growth stocks, he likes to see the percentage of ownership at less than 25%, and the quality of mutual fund ownership, above average.
 
 But then, what do I know?
 
 Charley</HTML>

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