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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: DownSouth who wrote (10618)11/18/1999 5:23:00 PM
From: StockHawk  Read Replies (1) | Respond to of 54805
 
>>Some say that MM will be able buy in when that line is crossed. <<

Is that really what they said? Sounds odd. I am assuming MM means Nasdaq Market Makers. MMs take one side of every Nasdaq trade - that's how the market works. Perhaps the reference was to Mutual Funds and/or Institutional Investors. Some have size criteria with regards to the firms they will invest in. Some will not invest in companies with stock prices under $10, so that can act as a threshold. Others will not invest in companies with too small a float or if the average daily trade is too low (since that makes them illiquid). Many funds have capitalization requirements - large cap, mid cap, small cap, micro cap - although the definations vary. I would guess that when a large cap treshold is crossed that could spur more buying. Several web sites will give you the percent of institutional ownership - which you can track to see if it is increasing or decreasing.

Don't know if this answers your question, or just raises more questions <g>

StockHawk