From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #2811 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Friday, August 16 2002 Volume 02 : Number 2811 In this issue: Re: [CANSLIM] Inst Ownership Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) [CANSLIM] stop losses and profits Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) RE: [CANSLIM] CEO / CFO certifications RE: [CANSLIM] Inst Ownership ---------------------------------------------------------------------- Date: Fri, 16 Aug 2002 06:57:21 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Inst Ownership This is a multi-part message in MIME format. - ------=_NextPart_000_0024_01C244F2.2AF9BEE0 Content-Type: text/plain; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable Mike, I don't subscribe to IBD, but I believe it shows some information = on the performance of funds, and some of their holdings, so you can see = if a stock is held by top performing funds. I am sure others can explain = more fully. I don't apply this principle of CANSLIM in my personal = investing, as I like to find a stock before the big boys do, and you = don't get many funds owning the small stocks I buy. - ----- Original Message -----=20 From: Mike Gibbons=20 To: canslim@lists.xmission.com=20 Sent: Friday, August 16, 2002 3:15 AM Subject: RE: [CANSLIM] Inst Ownership > and the quality of mutual fund ownership, above average.=20 and there's the rub. Where is quality defined, how is it measured and = what is above average? Rhetorical question, because I don't think = there's an answer, But, I've been wrong before and I expect the = redoubtable Katherine or Tom will prove me so again :-) Aloha, Mike Gibbons Proactive Technologies, LLC http://www.proactech.com -----Original Message----- From: owner-canslim@lists.xmission.com = [mailto:owner-canslim@lists.xmission.com]On Behalf Of Chazmoore@aol.com Sent: Thursday, August 15, 2002 6:12 PM To: canslim@lists.xmission.com 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.=20 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.=20 But then, what do I know?=20 Charley=20 - ------=_NextPart_000_0024_01C244F2.2AF9BEE0 Content-Type: text/html; charset="Windows-1252" Content-Transfer-Encoding: quoted-printable
Mike, I don't subscribe to IBD, but I believe it = shows=20 some information on the performance of funds, and some of their = holdings, so you=20 can see if a stock is held by top performing funds. I am sure others can = explain=20 more fully. I don't apply this principle of CANSLIM in my personal = investing, as=20 I like to find a stock before the big boys do, and you don't get many = funds=20 owning the small stocks I buy.
 
----- Original Message -----=20
From: Mike=20 Gibbons
To: canslim@lists.xmission.com=
Sent: Friday, August 16, 2002 3:15 AM
Subject: RE: [CANSLIM] Inst Ownership

>=20 and the quality of mutual fund = ownership, above=20 average.
and=20 there's the rub. Where is quality defined, how is it measured and = what is=20 above average? Rhetorical question, because I don't think there's an = answer,=20 But, I've been wrong before and I expect the redoubtable Katherine or = Tom will=20 prove me so again :-)
 
Aloha,
 
Mike = Gibbons
Proactive = Technologies,=20 LLC
http://www.proactech.com
-----Original Message-----
From:=20 owner-canslim@lists.xmission.com=20 [mailto:owner-canslim@lists.xmission.com]On Behalf Of=20 Chazmoore@aol.com
Sent: Thursday, August 15, 2002 6:12=20 PM
To: canslim@lists.xmission.com
Subject: Re: = [CANSLIM]=20 Inst Ownership

Gentlemen, if I may guide this discussion back to it's = beginning, I=20 believe I was the one who pontificated that IBD/DGO recommends no more = than=20 25% mutual fund ownership, because otherwise there would be inadequate = institutional capacity left to buy the stock when it started to move. = In my=20 opinion they use mutual funds because they leave a paper trail, and = the=20 quality of investment skill can be measured. Other institutions, for = example=20 life insurance companies, are more difficult to evaluate.

For = most=20 public companies, institutions own most of the outstanding float, = maybe 80% to=20 90% (according to Yahoo). Since the bulk of the ownership cannot be = evaluated=20 as respects investment skill and success, WON hones in on that part = that can=20 be monitored; the mutual funds. He recommends mutual fund sponsorship, = but for=20 growth stocks, he likes to see the percentage of ownership at less = than 25%,=20 and the quality of mutual fund ownership, above average.

But = then,=20 what do I know?

Charley =
- ------=_NextPart_000_0024_01C244F2.2AF9BEE0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 10:05:31 -0400 From: "Ann" Subject: Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) This is a multi-part message in MIME format. - ------=_NextPart_000_00ED_01C2450C.74B15CE0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Katherine, You are a gem! Thank you. This will help in the checklist I am making, of all the points to check = on a stock (chart and fundies) and where to check them. Ann ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Friday, August 16, 2002 9:23 AM Subject: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) Hi Charley and all, Charley's comment about the MSN site prompted me to upload a list of = my favorite resources (weblinks, etc) for CANSLIM. These are my own = personal favorites rather than a generic list as noted on the FAQ, so = you will notice that the tools I reference are the ones that I = personally use, not a definitive list of all things CANSLIM. http://WallStreet-LLC.com/canslim/FavoriteResourcesKM.doc (this is a Word document) I'd encourage those of you who also have a set of favorite resources = to upload the list the CANSLIM FTP site, where they will be permanently = available to others. As I update the CANSLIM list FAQ, I'll include the = link to members' lists. Katherine ----- Original Message -----=20 From: Chazmoore@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Friday, August 16, 2002 7:54 AM Subject: Re: [CANSLIM] Inst Ownership Katherine: Thanks for clearing up the institutional ownership = question. That CNBC web site is excellent.=20 Charley=20 - ------=_NextPart_000_00ED_01C2450C.74B15CE0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katherine,
 
You are a gem! Thank you.
 
This will help in the checklist I am making, of all = the points=20 to check on a stock (chart and fundies) and where to check=20 them.
 
Ann
----- Original Message -----
From:=20 Katherine=20 Malm
To: canslim@lists.xmission.com=
Sent: Friday, August 16, 2002 = 9:23=20 AM
Subject: [CANSLIM] Re: Favorite = Resources=20 (was: Inst Ownership)

Hi Charley and all,
 
Charley's comment about the MSN site prompted me to upload a = list of=20 my favorite resources (weblinks, etc) for CANSLIM. These are my = own=20 personal favorites rather than a generic list as noted on the FAQ, so = you will=20 notice that the tools I reference are the ones that I personally use, = not a=20 definitive list of all things CANSLIM.
 
http:/= /WallStreet-LLC.com/canslim/FavoriteResourcesKM.doc
(this is a Word document)
 
I'd encourage those of you who also have a set of favorite = resources to=20 upload the list the CANSLIM FTP site, where they will be permanently = available=20 to others. As I update the CANSLIM list FAQ, I'll include the link to = members'=20 lists.
 
Katherine
----- Original Message -----
From:=20 Chazmoore@aol.com
Sent: Friday, August 16, 2002 = 7:54=20 AM
Subject: Re: [CANSLIM] Inst=20 Ownership

Katherine: Thanks for=20 clearing up the institutional ownership question. That CNBC web site = is=20 excellent.

Charley=20
- ------=_NextPart_000_00ED_01C2450C.74B15CE0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 10:14:32 -0400 From: "Tom Worley" Subject: Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) This is a multi-part message in MIME format. - ------=_NextPart_000_0219_01C2450D.B72C7270 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable great idea Katherine - ----- Original Message -----=20 From: Katherine Malm=20 To: canslim@lists.xmission.com=20 Sent: Friday, August 16, 2002 9:23 AM Subject: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) Hi Charley and all, Charley's comment about the MSN site prompted me to upload a list of my = favorite resources (weblinks, etc) for CANSLIM. These are my own = personal favorites rather than a generic list as noted on the FAQ, so = you will notice that the tools I reference are the ones that I = personally use, not a definitive list of all things CANSLIM. http://WallStreet-LLC.com/canslim/FavoriteResourcesKM.doc (this is a Word document) I'd encourage those of you who also have a set of favorite resources to = upload the list the CANSLIM FTP site, where they will be permanently = available to others. As I update the CANSLIM list FAQ, I'll include the = link to members' lists. Katherine ----- Original Message -----=20 From: Chazmoore@aol.com=20 To: canslim@lists.xmission.com=20 Sent: Friday, August 16, 2002 7:54 AM Subject: Re: [CANSLIM] Inst Ownership Katherine: Thanks for clearing up the institutional ownership = question. That CNBC web site is excellent.=20 Charley=20 - ------=_NextPart_000_0219_01C2450D.B72C7270 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
great idea Katherine
 
----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=
Sent: Friday, August 16, 2002 9:23 AM
Subject: [CANSLIM] Re: Favorite Resources (was: Inst=20 Ownership)

Hi Charley and all,
 
Charley's comment about the MSN site prompted me to upload a = list of=20 my favorite resources (weblinks, etc) for CANSLIM. These are my own = personal favorites rather than a generic list as noted on the FAQ, so = you will=20 notice that the tools I reference are the ones that I personally use, = not a=20 definitive list of all things CANSLIM.
 
http:/= /WallStreet-LLC.com/canslim/FavoriteResourcesKM.doc
(this is a Word document)
 
I'd encourage those of you who also have a set of favorite = resources to=20 upload the list the CANSLIM FTP site, where they will be permanently = available=20 to others. As I update the CANSLIM list FAQ, I'll include the link to = members'=20 lists.
 
Katherine
----- Original Message -----
From:=20 Chazmoore@aol.com
Sent: Friday, August 16, 2002 = 7:54=20 AM
Subject: Re: [CANSLIM] Inst=20 Ownership

Katherine: = Thanks for=20 clearing up the institutional ownership question. That CNBC web site = is=20 excellent.

Charley - ------=_NextPart_000_0219_01C2450D.B72C7270-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 09:17:51 -0500 From: michael_niemotka@baxter.com Subject: [CANSLIM] stop losses and profits Group, In reading WON, he makes a statement that you should never let a stock in which you are up 10-15% turn into a loss, but I was wondering you have interpreted that along with the sell at no more than an 8% loss rule. Say you buy a stock, at a breakout, and it rises 10-15% over a few (6+ weeks), and then is started to correct....Do you sell at you break even point, or do you allow it to go to your 8% loss point before selling? This is assuming that the stock is NOT giving any strong sell signals, but appears to be pulling back "normally". Thanks Mike Niemotka , PE Sr. Principal Engineer Baxter Healthcare Corporation Route 120 & Wilson Road Round Lake, IL 60073 Tel (847) 270-4075 Fax (847) 270-4525 michael_niemotka@baxter.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 07:18:34 -0700 (PDT) From: Jack Tencza Subject: Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) Thanks Katherine. Once again you (your information)are the best part of my daily CANSLIM session. Jack - --- Katherine Malm wrote: > Hi Charley and all, > > Charley's comment about the MSN site prompted me to > upload a list of my favorite resources (weblinks, > etc) for CANSLIM. These are my own personal > favorites rather than a generic list as noted on the > FAQ, so you will notice that the tools I reference > are the ones that I personally use, not a definitive > list of all things CANSLIM. > > http://WallStreet-LLC.com/canslim/FavoriteResourcesKM.doc > (this is a Word document) > > I'd encourage those of you who also have a set of > favorite resources to upload the list the CANSLIM > FTP site, where they will be permanently available > to others. As I update the CANSLIM list FAQ, I'll > include the link to members' lists. > > Katherine > ----- Original Message ----- > From: Chazmoore@aol.com > To: canslim@lists.xmission.com > Sent: Friday, August 16, 2002 7:54 AM > Subject: Re: [CANSLIM] Inst Ownership > > > Katherine: Thanks for clearing up the > institutional ownership question. That CNBC web site > is excellent. > > Charley > ===== Jack __________________________________________________ Do You Yahoo!? HotJobs - Search Thousands of New Jobs http://www.hotjobs.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 14:29:53 GMT From: "Boyd" Subject: Re: [CANSLIM] Re: Favorite Resources (was: Inst Ownership) Katherine, I thought I had a good list of sources, and I do. But this is impressive. Thanks for sharing. Norm Katherine Malm writes: > Hi Charley and all, > > Charley's comment about the MSN site prompted me to upload a list of my favorite resources (weblinks, etc) for CANSLIM. These are my own personal favorites rather than a generic list as noted on the FAQ, so you will notice that the tools I reference are the ones that I personally use, not a definitive list of all things CANSLIM. > > http://WallStreet-LLC.com/canslim/FavoriteResourcesKM.doc > (this is a Word document) > > I'd encourage those of you who also have a set of favorite resources to upload the list the CANSLIM FTP site, where they will be permanently available to others. As I update the CANSLIM list FAQ, I'll include the link to members' lists. > > Katherine > ----- Original Message ----- > From: Chazmoore@aol.com > To: canslim@lists.xmission.com > Sent: Friday, August 16, 2002 7:54 AM > Subject: Re: [CANSLIM] Inst Ownership > > > Katherine: Thanks for clearing up the institutional ownership question. That CNBC web site is excellent. > > Charley - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 09:50:24 -0500 From: "Kelly Short" Subject: RE: [CANSLIM] CEO / CFO certifications Tom, Not surprising on most of these companies- but was a little surprised to = see Coors and Advance Auto on the list. They've certainly had their 15 = minutes in IBD lately. Foreshadowing? Kelly - -----Original Message----- From: Tom Worley [mailto:stkguru@bellsouth.net] Sent: Thursday, August 15, 2002 6:36 PM To: CANSLIM Subject: [CANSLIM] CEO / CFO certifications as per the SEC website, updated as of 7:10 PM tonight, following = companies expected to report by yesterday still had not filed. No indication is = shown of those that filed for the five day extension. Adolph Coors Company Advance Auto Parts, Inc. The AES Corporation Anadarko Petroleum Corporation Aon Corporation Aquila, Inc. Brightpoint, Inc. Cendant Corp Coca-Cola Enterprises Inc. Collins & Aikman Corp. Comdisco Inc. Conseco Inc. Consolidated Freightways Corp. Danaher Corporation DST Systems, Inc. Exide Technologies Foamex International Inc. Gemstar-TV Guide International Inc. Gentek Inc. Hercules Inc. Hub Group Inc. IT Group Inc. Jones Apparel Group Inc. Mariner Health Care Inc. McLeodUSA Incorporated Metaldyne Corporation MetLife Inc. Millennium Chemicals Inc. Newmont Mining Corporation NorthWestern Corporation NSTAR Perini Corp. Protective Life Corp. Qwest Communications Intl Reliant Energy Inc. Riverwood Holding Inc. Rock-Tenn Co. Sempra Energy. TXU Corp. U.S. Industries Inc. US Airways Group Inc. Weatherford International Inc. XO Communications Inc. Zions Bancorporation Tom Worley stkguru@bellsouth.net AIM: TexWorley - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. _________________________________________________________________________= ___ For your protection, this e-mail message has been scanned for viruses. Visit us at http://www.neoris.com/ - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ Date: Fri, 16 Aug 2002 09:56:46 -0500 From: "Kelly Short" Subject: RE: [CANSLIM] Inst Ownership This is a multi-part message in MIME format. - ------_=_NextPart_001_01C24535.24817B40 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Katherine, =20 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, =20 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." =20 A great place to check ownership is at: http://moneycentral.msn.com/investor/invsub/ownership/ownership.asp?Symbo= l=3DSBUX 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. =20 - -Katherine =20 >From AskIBD (highlighting is mine): =20 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? =20 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. =20 Question Can too much institutional sponsorship be a bad thing? =20 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. =20 =20 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? =20 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. =20 =20 =20 =20 =20 =20 =20 =20 =20 - ----- Original Message -----=20 From: Chazmoore@aol.com=20 To: canslim@lists.xmission.com=20 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.=20 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.=20 But then, what do I know?=20 Charley=20 _____ =20 For your protection, this e-mail message has been scanned for viruses.=20 Visit us at http://www.neoris.com/=20 _____ =20 - ------_=_NextPart_001_01C24535.24817B40 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable
Katherine,
 
I've=20 used Morningstar's Mutual Fund ratings before and often wondered how = these=20 ratings were accepted by the group. Have you found their ratings to be=20 helpful/accurate and do you weigh IBD's or another sources' rating on = mutual=20 funds over Morningstar's? Also, seems like I remember someone slamming = "The=20 Hedge Fund Edge" book a while back- would you recommend this book for a = reading=20 list?
-----Original Message-----
From: Katherine Malm=20 [mailto:kmalm@earthlink.net]
Sent: Thursday, August 15, 2002 = 11:44=20 PM
To: canslim@lists.xmission.com
Subject: Re: = [CANSLIM]=20 Inst Ownership

Hi Charley et al,
 
Mark Boucher (The Hedge Fund Edge) recommends in his work = that=20 institutional ownership (banks + mutual funds) runs 10-30%. WON seems = to take=20 a more generalist view of the actual percentage and instead focuses on = both=20 the quality of ownership and the fact that ownership is=20 increasing. As with Boucher, WON considers both mutual funds = and=20 banks to be "institutional owners."
 
A great place to check ownership is at:
http://moneycentral.msn.com/investor/invsub/ownership/o= wnership.asp?Symbol=3DSBUX
Then use either the IBD's Mutual Fund ratings or look up ratings = at www.morningstar.com to take a = look at=20 quality of ownership.
 
-Katherine
 
From AskIBD (highlighting is mine):
 

Question

What percentage of a company's shares outstanding = should be=20 owned by institutions in order for the stock to qualify as = institutionally=20 well sponsored?

 

Answer

It's not so much what percentage of a company's = stock is=20 owned by institutions as the number of institutions that own it. You = don't=20 want to see just one institution owning it. Any stock you consider = purchasing=20 should be owned by at least a few mutual = funds and=20 preferably one or more banks or other institutional = investors.=20 Also, look for stocks owned by at least one top-rated mutual fund. The = better=20 funds research companies extensively. So when they buy a stock, it = serves as=20 way to cross-check how sound the company=20 is.

 

Question

Can too much institutional sponsorship be a bad=20 thing?

 

Answer

It depends on the company, their earnings and = their=20 products. In theory, if a stock is heavily owned by institutions, it = doesn't=20 leave much for other major investor's to buy and propel the stock = higher.=20 But if these companies continue to grow, = heavy=20 ownership should not create a=20 problem.

 

 

Question

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?

  

Answer

It is hard to tell how = much=20 institutional ownership is too much. Therefore, you should place less = weight=20 on this factor. Rather, focus on the quality of ownership. You want to = see at=20 least a few of the better performing mutual funds owning the stock you = are=20 considering buying. In some cases, however, if too many = shares are=20 owned by institutional investors, this could be bad. That's because it = represents large potential selling if anything goes wrong with the = company or=20 the general market.

 

 

 

 

 
 
 
 
 
----- Original Message -----
From:=20 Chazmoore@aol.com
Sent: Thursday, August 15, = 2002 11:11=20 PM
Subject: Re: [CANSLIM] Inst=20 Ownership

Gentlemen, if I may=20 guide this discussion back to it's beginning, I believe I was the = one who=20 pontificated that IBD/DGO recommends no more than 25% mutual fund = ownership,=20 because otherwise there would be inadequate institutional capacity = left to=20 buy the stock when it started to move. In my opinion they use mutual = funds=20 because they leave a paper trail, and the quality of investment = skill can be=20 measured. Other institutions, for example life insurance companies, = are more=20 difficult to evaluate.

For most public companies, = institutions own=20 most of the outstanding float, maybe 80% to 90% (according to = Yahoo). Since=20 the bulk of the ownership cannot be evaluated as respects investment = skill=20 and 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 = quality=20 of mutual fund ownership, above average.

But then, what do I = know?=20

Charley
For your protection, this e-mail message has been scanned for viruses. =

Visit us at http://www.neoris.com/=20

- ------_=_NextPart_001_01C24535.24817B40-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. ------------------------------ End of canslim-digest V2 #2811 ****************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.