SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Viatel (VYTL)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: blankmind who wrote (40)3/23/1998 12:56:00 PM
From: LuckyIrishMan  Read Replies (1) of 157
 
i have never heard this, actually i learned the larger the institutional holding the better. institutions do not buy and sell, but hold and keep the stock from sharp fluctuations by limiting the shares that can be traded, and thus helping to create a demand.
-blankmind

Exactly! If our goal is to make money off of the stock price, a company that is largely held by institutions does not have a lot of room for growth. The individual investor does not drive the stock price, it is the institutions that really are controlling the price. So when a company is largerly held by institutions (around 30%), there is not a lot of room for other institutions to get in and thus push the stock price up. One of the guys I work with uses this on a conistent basis when buying stocks for his clients. He makes a lot of money by finding solid companies that are not largely held by institutions and then just waits as the stock gets bought by the big boys.

Don't get me wrong I like Viatel and own some myself, I just wanted to through out an objective opinion.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext