Many institutional investors are regulated companies in industries
such as insurance, banks, trusts, etc. where the assets they hold
have to be secure enough to support their liabilities, examples
being the deposit money they hold for us or the insurance contracts they may have to pay out. Legislated regulations will not allow
these kind of companies to hold high-risk, potentially illiquid
assets such as pink sheet or over-the-counter securities.
But there are a large group of funds out there where the money is
pooled expressly for the purpose of finding a Phoenix rising from
the ashes. They have in-house experts monitoring high-potential
companies such as FTEL and Frank's background and references
suggest there are many eyes on him.
These pools of money may have staff who are expert in one or more
particular industries. They may not have any trading staff in house
though and outsource that activity through third-party brokers such
as Cantor-Fitzgerald (CF). Raleigh has identified CF as having
entered the buying frey a number of days ago and are currently
offering buying support at about $5.00. With the volume in the
millions in the last two weeks, however, it strongly suggests there
have been other professional pools of money picking up some FTEL
shares.
The exciting thing, Street Walker, is these monies perform arms-
length, high quality, professional due diligence on the company
before they start buying. And other pooled funds notice this!
And they in turn perform their due diligence. And these pools of
money only come into plays where they see potential returns in
the multiples of what they come in at.
We here on this SI thread are unbelievably privileged to be
peaking over the shoulders of our own in-house analysts (Raleigh,
Vic, Doug, Stephen, just to name a few). And they offer the
analysis in such a way that we, as technical laymen, can get
some degree of comprehension from. And the conclusions of the
out-of-house analysts, i.e., the institutional monies coming
into FTEL, are in obvious agreement with the SI analysts!! |
