Institutional Ownership% & Price Performance.
Here I am, with a portfolio full of swooners, looking at this week's top oil patch performers, wondering what they have that my stocks don't have. Here's the list (all with double-digit gains):
GSCI (up 21.5%)
DWSN (up 20%)
DALY (up 18.4%)
UFAB (up 15.8%)
WEL (up 15.4%)
FGII (up 12.3%)
None of them, I submit, is as "good" across-the-board (earnings/sales/cashflow growth, valuation ratios, financials,
predictability/consistency, etc.) as is, say, TDW, which lost over 7% this week. So why are they being rewarded? What do they have in common?
Eureka -- it's a very low percentage of institutional ownership.
GSCI 14.82%
DWSN 43.9%
DALY 35.49%
UFAB 35.76%
WEL N/A (!!)
FGII 31.52%
The industry average for institutional ownership is much higher -- 63.25%. And the average for my swooner stocks (including TDW) is 90%!!
So, it's clear who was dumping TDW & Co. this week (the institutions). But who was buying this week's stars? The institutions again (switching allegiances?). Or individual investors? Just curious.
This sort of thing only reinforces my gut feeling that it's best, when possible, to avoid stocks with heavy institutional ownership.
jbe |
