Frequently Asked Questions
Market Lab Report
How to Make Money in Stocks says to look for stocks with more than 30% but less than 60% institutional ownership. What are your views?
O'Neil didnt want to see too many shares of a stock's float owned by institutions as this could represent saturation and thus could be difficult to propel a stock much higher, plus could cause the stock to quickly drop if they headed for the exits at once. We would agree. We look for A- and above ranked funds owning stock, and increasing their holdings. We also look at the totals overall to see that the number of shares owned by institutions is increasing. This of course is ideal, so if a stock does not have these characteristics of institutional sponsorship, it might still be bought if other variables measure up.
Published: Oct 3 2010