Go to Jeff Salisbury LWGate Home Page.From: "David Taggart" <dctag@mavericktrading.com>
Subject: RE: [CANSLIM] Inst Ownership
Date: Fri, 16 Aug 2002 11:06:36 -0600
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I am with Katherine on this topic (and on most for that matter) I dont pay
too much attention to quality of funds rankings. Instead there are some
names that I do follow and if they own the stock it is a bonus but if not
then it doesnt stop me from purchasing the stock. I use
http://www.lionshares.com and some of the names I look for are Wasatch
funds, Zweig-Dimenna, Driehaus, Soros, Vinik, Tudor, Maverick Capital,
Omega, Cobalt, Duquesne, Caxton, and some others I cant think of. Basically
I look for owners that have a great long-term track record most of them
Hedge funds. I figure that if someone like Dimenna or Omega owns my stock
then there is a better chance that I didnt miss some big flaw in the
company. Most of those mentioned do a little of everything with a few
devoted growth and value guys in there.
As for Hedge Fund Edge I have already mentioned it before as one of the best
investing/trading/econ books out there. Boucher really is not only a smart
guy that knows his stuff but he knows how to teach.
David Taggart
-----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Katherine Malm
Sent: Friday, August 16, 2002 10:21 AM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Inst Ownership
Hi Kelly,
I'm not all that keen on the current ranking systems of mutual funds, IBD
or Morningstar, as they take *all* funds and assign scores accordingly. I
found this to be particularly obvious in early 2000, when the 3 year track
record of aggressive growth funds were A+ and value/bond funds were D-. In
other words, you're looking at rankings that are influenced by what *has*
been working in the market, rather than the track performance of that fund
vs. similar funds. I understand Morningstar is in the process of changing
their ranking systems for just that reason, though I haven't kept up with
the progress of those changes. (Perhaps somebody here can add their take on
this).
So, all in all, I'm leery of simply concluding that Fund xxx is a
"quality" fund because they have an IBD ranking of A+ and/or a Morningstar
rating of 5 stars. But, such as it is, it at least give you a clue. I
personally don't worry too much about this aspect of my CANSLIM mining
technique, preferring to dig into these details only if I've got two
candidates tied and am having trouble choosing between them, or if I want to
be "double extra sure" that all things look right for the particular
candidate.
On the "Hedge Fund Edge"--I refer to Mark Boucher as "CANSLIM on steroids"
and consider his book only good for those who already have an advanced
understanding of investing and CANSLIM. He covers monetarist economic
theory, money management, risk management, entry/exit/selection, etc. In
other words, decidedly not a beginner's book. However, if you're further
along the CANSLIM and investing learning curve, I think it's a gold mine of
information. Boucher is sharp as a tack, has an impressive track record, and
has one of the most level-headed approaches to investing I've run across
next to WON himself.
Katherine
----- Original Message -----
From: Kelly Short
To: canslim@lists.xmission.com
Sent: Friday, August 16, 2002 9:56 AM
Subject: RE: [CANSLIM] Inst Ownership
Katherine,
I've used Morningstar's Mutual Fund ratings before and often wondered
how these ratings were accepted by the group. Have you found their ratings
to be helpful/accurate and do you weigh IBD's or another sources' rating on
mutual funds over Morningstar's? Also, seems like I remember someone
slamming "The Hedge Fund Edge" book a while back- would you recommend this
book for a reading list?
-----Original Message-----
From: Katherine Malm [mailto:kmalm@earthlink.net]
Sent: Thursday, August 15, 2002 11:44 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Inst Ownership
Hi Charley et al,
Mark Boucher (The Hedge Fund Edge) recommends in his work that
institutional ownership (banks + mutual funds) runs 10-30%. WON seems to
take a more generalist view of the actual percentage and instead focuses on
both the quality of ownership and the fact that ownership is increasing. As
with Boucher, WON considers both mutual funds and banks to be "institutional
owners."
A great place to check ownership is at:
http://moneycentral.msn.com/investor/invsub/ownership/ownership.asp?Symbol=S
BUX
Then use either the IBD's Mutual Fund ratings or look up ratings at
www.morningstar.com to take a look at quality of ownership.
-Katherine
From AskIBD (highlighting is mine):
Question
What percentage of a company's shares outstanding should be owned by
institutions in order for the stock to qualify as institutionally well
sponsored?
Answer
It's not so much what percentage of a company's stock is owned by
institutions as the number of institutions that own it. You don't want to
see just one institution owning it. Any stock you consider purchasing should
be owned by at least a few mutual funds and preferably one or more banks or
other institutional investors. Also, look for stocks owned by at least one
top-rated mutual fund. The better funds research companies extensively. So
when they buy a stock, it serves as way to cross-check how sound the company
is.
Question
Can too much institutional sponsorship be a bad thing?
Answer
It depends on the company, their earnings and their products. In
theory, if a stock is heavily owned by institutions, it doesn't leave much
for other major investor's to buy and propel the stock higher. But if these
companies continue to grow, heavy ownership should not create a problem.
Question
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?
Answer
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.
----- Original Message -----
From: Chazmoore@aol.com
To: canslim@lists.xmission.com
Sent: Thursday, August 15, 2002 11:11 PM
Subject: Re: [CANSLIM] Inst Ownership
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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<DIV><SPAN class=3D479595016-16082002><FONT face=3DArial color=3D#0000ff =
size=3D2>I am=20
with Katherine on this topic (and on most for that matter) I dont pay =
too much=20
attention to quality of funds rankings. Instead there are some =
names that=20
I do follow and if they own the stock it is a bonus but if not then it =
doesnt=20
stop me from purchasing the stock. I use <A=20
href=3D"http://www.lionshares.com">http://www.lionshares.com</A> &nb=
sp; and=20
some of the names I look for are Wasatch funds, Zweig-Dimenna, Driehaus, =
Soros,=20
Vinik, Tudor, Maverick Capital, Omega, Cobalt, Duquesne, Caxton, and =
some others=20
I cant think of. Basically I look for owners that have a great =
long-term=20
track record most of them Hedge funds. I figure that if someone =
like=20
Dimenna or Omega owns my stock then there is a better chance that I =
didnt miss=20
some big flaw in the company. Most of those mentioned do a =
little of=20
everything with a few devoted growth and value guys in=20
there.</FONT></SPAN></DIV>
<DIV><SPAN class=3D479595016-16082002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D479595016-16082002><FONT face=3DArial color=3D#0000ff =
size=3D2>As for=20
Hedge Fund Edge I have already mentioned it before as one of the best=20
investing/trading/econ books out there. Boucher really is not only =
a smart=20
guy that knows his stuff but he knows how to teach.</FONT></SPAN></DIV>
<DIV><SPAN class=3D479595016-16082002><FONT face=3DArial color=3D#0000ff =
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D479595016-16082002><FONT face=3DArial color=3D#0000ff =
size=3D2>David=20
Taggart</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B>=20
owner-canslim@lists.xmission.com=20
[mailto:owner-canslim@lists.xmission.com]<B>On Behalf Of </B>Katherine =
Malm<BR><B>Sent:</B> Friday, August 16, 2002 10:21 AM<BR><B>To:</B>=20
canslim@lists.xmission.com<BR><B>Subject:</B> Re: [CANSLIM] Inst=20
Ownership<BR><BR></FONT></DIV>
<DIV>Hi Kelly,</DIV>
<DIV> </DIV>
<DIV>I'm not all that keen on the current ranking systems of mutual =
funds, IBD=20
or Morningstar, as they take *all* funds and assign scores =
accordingly. I=20
found this to be particularly obvious in early 2000, when the 3 year =
track=20
record of aggressive growth funds were A+ and value/bond funds were =
D-. In=20
other words, you're looking at rankings that are influenced by what =
*has* been=20
working in the market, rather than the track performance of that fund =
vs.=20
similar funds. I understand Morningstar is in the process of changing =
their=20
ranking systems for just that reason, though I haven't kept up with =
the=20
progress of those changes. (Perhaps somebody here can add their take =
on=20
this).</DIV>
<DIV> </DIV>
<DIV>So, all in all, I'm leery of simply concluding that Fund xxx is a =
"quality" fund because they have an IBD ranking of A+ and/or a =
Morningstar=20
rating of 5 stars. But, such as it is, it at least give you a clue. I=20
personally don't worry too much about this aspect of my CANSLIM mining =
technique, preferring to dig into these details only if I've got two=20
candidates tied and am having trouble choosing between them, or if I =
want to=20
be "double extra sure" that all things look right for the particular=20
candidate.</DIV>
<DIV> </DIV>
<DIV>On the "Hedge Fund Edge"--I refer to Mark Boucher as "CANSLIM on=20
steroids" and consider his book only good for those who already have =
an=20
advanced understanding of investing and CANSLIM. He covers monetarist =
economic=20
theory, money management, risk management, entry/exit/selection, etc. =
In other=20
words, decidedly not a beginner's book. However, if you're further =
along the=20
CANSLIM and investing learning curve, I think it's a gold mine of =
information.=20
Boucher is sharp as a tack, has an impressive track record, and has =
one of the=20
most level-headed approaches to investing I've run across next to WON=20
himself.</DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=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=3Dkelly.short@tx.us.neoris.com=20
href=3D"mailto:kelly.short@tx.us.neoris.com">Kelly Short</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>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Friday, August 16, 2002 =
9:56=20
AM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] Inst=20
Ownership</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D090065514-16082002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>Katherine,</FONT></SPAN></DIV>
<DIV><SPAN class=3D090065514-16082002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2></FONT></SPAN> </DIV>
<DIV><SPAN class=3D090065514-16082002><FONT face=3DArial =
color=3D#0000ff=20
size=3D2>I've used Morningstar's Mutual Fund ratings before and =
often wondered=20
how these ratings were accepted by the group. Have you found their =
ratings=20
to be helpful/accurate and do you weigh IBD's or another sources' =
rating on=20
mutual funds over Morningstar's? Also, seems like I remember someone =
slamming "The Hedge Fund Edge" book a while back- would you =
recommend this=20
book for a reading list?</FONT></SPAN></DIV>
<BLOCKQUOTE dir=3Dltr style=3D"MARGIN-RIGHT: 0px">
<DIV class=3DOutlookMessageHeader dir=3Dltr align=3Dleft><FONT =
face=3DTahoma=20
size=3D2>-----Original Message-----<BR><B>From:</B> Katherine Malm =
[mailto:kmalm@earthlink.net]<BR><B>Sent:</B> Thursday, August 15, =
2002=20
11:44 PM<BR><B>To:</B> =
canslim@lists.xmission.com<BR><B>Subject:</B> Re:=20
[CANSLIM] Inst Ownership<BR><BR></FONT></DIV>
<DIV>Hi Charley et al,</DIV>
<DIV> </DIV>
<DIV>Mark Boucher (The Hedge Fund Edge) recommends in his =
work that=20
institutional ownership (banks + mutual funds) runs 10-30%. WON =
seems to=20
take a more generalist view of the actual percentage and instead =
focuses=20
on both the <EM>quality</EM> of ownership and the fact that =
ownership is=20
<EM>increasing</EM>. As with Boucher, WON considers both mutual =
funds and=20
banks to be "institutional owners."</DIV>
<DIV> </DIV>
<DIV>A great place to check ownership is at:</DIV>
<DIV><A=20
=
href=3D"http://moneycentral.msn.com/investor/invsub/ownership/ownership.a=
sp?Symbol=3DSBUX">http://moneycentral.msn.com/investor/invsub/ownership/o=
wnership.asp?Symbol=3DSBUX</A></DIV>
<DIV>Then use either the IBD's Mutual Fund ratings or look up =
ratings at=20
<A href=3D"http://www.morningstar.com">www.morningstar.com</A> to =
take a=20
look at quality of ownership.</DIV>
<DIV> </DIV>
<DIV>-Katherine</DIV>
<DIV> </DIV>
<DIV>From AskIBD (highlighting is mine):</DIV>
<DIV> </DIV>
<DIV>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Question<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">What percentage of a company's shares =
outstanding=20
should be owned by institutions in order for the stock to qualify =
as=20
institutionally well =
sponsored?<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> <o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Answer<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">It's not so much what percentage of a =
company's stock=20
is owned by institutions as the number of institutions that own =
it. You=20
don't want to see just one institution owning it. Any stock you =
consider=20
purchasing <EM><FONT color=3D#0000ff>should be owned by at least a =
few=20
mutual funds and preferably one or more banks or other =
institutional=20
investors</FONT></EM>. Also, look for stocks owned by at least one =
top-rated mutual fund. The better funds research companies =
extensively. So=20
when they buy a stock, it serves as way to cross-check how sound =
the=20
company is.<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> <o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Question<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Can too much institutional sponsorship be a =
bad=20
thing?<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> <o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Answer<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">It depends on the company, their earnings and =
their=20
products. In theory, if a stock is heavily owned by institutions, =
it=20
doesn't leave much for other major investor's to buy and propel =
the stock=20
higher. <FONT color=3D#0000ff><EM>But if these companies continue =
to grow,=20
heavy ownership should not create a=20
problem.<o:p></o:p></EM></FONT></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> <o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> <o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Question<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">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=20
rising?<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> </FONT></FONT></SPAN><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"> </SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New">Answer<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"></SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><FONT color=3D#0000ff><EM>It is hard to tell =
how much=20
institutional ownership is too much. Therefore, you should place =
less=20
weight on this factor. Rather, focus on the quality of ownership. =
You want=20
to see at least a few of the better performing mutual funds owning =
the=20
stock you are considering buying.</EM></FONT> In some cases, =
however, if=20
too many shares are owned by institutional investors, this could =
be bad.=20
That's because it represents large potential selling if anything =
goes=20
wrong with the company or the general=20
market.<o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"> <o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"> </SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier New"><SPAN=20
style=3D"mso-spacerun: =
yes"> </SPAN><o:p></o:p></FONT></FONT></SPAN></P>
<P class=3DMsoPlainText style=3D"MARGIN: 0in 0in 0pt"><SPAN=20
style=3D"mso-fareast-font-family: 'MS Mincho'"><FONT =
size=3D2><FONT=20
face=3D"Courier =
New"> <o:p></o:p></FONT></FONT></SPAN></P></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </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=20
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Thursday, August =
15, 2002=20
11:11 PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] =
Inst=20
Ownership</DIV>
<DIV><BR></DIV><FONT face=3Darial,helvetica><FONT =
size=3D2>Gentlemen, if I=20
may guide this discussion back to it's beginning, I believe I =
was the=20
one who pontificated that IBD/DGO recommends no more than 25% =
mutual=20
fund ownership, because otherwise there would be inadequate=20
institutional capacity left to buy the stock when it started to =
move. In=20
my opinion they use mutual funds because they leave a paper =
trail, and=20
the quality of investment skill can be measured. Other =
institutions, for=20
example life insurance companies, are more difficult to =
evaluate.=20
<BR><BR>For most public companies, institutions own most of the=20
outstanding float, maybe 80% to 90% (according to Yahoo). Since =
the bulk=20
of the ownership cannot be evaluated as respects investment =
skill and=20
success, WON hones in on that part that can be monitored; the =
mutual=20
funds. He recommends mutual fund sponsorship, but for growth =
stocks, he=20
likes to see the percentage of ownership at less than 25%, and =
the=20
quality of mutual fund ownership, above average. <BR><BR>But =
then, what=20
do I know? <BR><BR>Charley</FONT> </FONT></BLOCKQUOTE>
<HR>
For your protection, this e-mail message has been scanned for =
viruses.=20
<P>Visit us at <A =
href=3D"http://www.neoris.com/">http://www.neoris.com/</A>=20
<HR>
<P></P></BLOCKQUOTE></BLOCKQUOTE></BLOCKQUOTE></BODY></HTML>
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