|
PureBytes Links
Trading Reference Links
|
Al,
My own observations.
Even though the institutional ownership on the 400 issues studied was
relatively stable (and high), notice that the BETA values did not seem
to imply the diminished volatility that you might expect from the
level of institutional ownership.
I did notice that the BETA values consistantly got lower as the list
diminished in DOLLAR related volume, (and the reported BETA averages
included (rather than excluded) the higher DOLLAR related volume
issues reported above them. In other words, there seems to be a
significant linear relationship between the DOLLAR volume and BETA,
regardless of institutional ownership.
Perhaps another study needs to be done seperately on the relationship
between institional ownership and float and BETA to see if there is a
predictable relationship where institutional ownership is concerned.
Phsst
--- In amibroker@xxxxxxxxxxxxxxx, "Al Venosa" <advenosa@xxxx> wrote:
> Yuki,
>
> That was a neat story, albeit anecdotal. Very interesting. I
remember years ago, when I was interested in O'Neil's CANSLIM method
of trading, that he used to recommend SOME institutional ownership,
but not a huge amount. He favored (and still does, I think) lower cap
stocks with huge growth potential. You seem to be saying the opposite:
institutional ownership is good, and the more, the better. Am I
interpreting you correctly? Doesn't a high degree of institutional
ownership result in diminished volatility, to the point of being less
tradeable since the stock moves ever so slowly? Apparently not, at
least in your case with Softbank.
>
> As always, I enjoy your provocative posts.
>
> Al Venosa
> ----- Original Message -----
> From: Yuki Taga
> To: Phsst
> Sent: Friday, July 18, 2003 9:18 PM
> Subject: Re: [amibroker] Narrowing in on Tradable Stocks
>
>
> Hi Phsst,
>
> Saturday, July 19, 2003, 9:38:44 AM, you wrote:
>
> P> Top % of Avg Avg
> P> # of Total BETA Institutional
> P> Issues Vol Ownership
> P> on List
>
> P> 3 10%
> P> 20 25% 1.76 68.23%
> P> 100 48% 1.48 65.85%
> P> 200 61% 1.41 68.19%
> P> 300 69% 1.36 68.86%
> P> 400 75% 1.34 66.71%
>
> P> The top 400 issues traded a minimum of $50 million USD each.
>
> Interesting statistics. The institutional ownership statistic might
> be telling. Back in '98 and '99 I used to actively trade a stock
> here called Softbank. It was one of the high tech high flyers, and
> for some reason I could make money actively trading this stock. At
> the time my account was with Nikko Securities, and the branch manager
> at that branch was my broker. One day he told me that I was the only
> retail person he knew that traded the stock, that it was mostly only
> traded by institutions.
>
> The stock went very high by early 2000, then imploded with the rest
> of its ilk, losing well over 90 percent of its value. During this
> implosion, the stock lost institutional sponsorship, and when the
> price got low enough, it started to become a retail favorite. About
> that time, I lost the ability to trade the stock profitably. It
> changed from an "orderly" stock to one that was extremely volatile,
> and worst of all, no pattern or characteristics to the volatility
> that I could see or take advantage of. I haven't traded the stock in
> well over 2 years now, and it continues on it's erratic way. I watch
> it once in a great while on one of my axillary screens.
>
> So what do we know from this? Well, we know that a stock *can* go
> from very tradable to very difficult if not impossible to trade. But
> perhaps we can also see that heavy institutional ownership and
> trading may contribute greatly to orderliness, as difficult as that
> is going to be to arrive at a universal definition of. Interesting
> story of one stock, anyway.
>
> By the way, those betas above are dead-on the average betas of the 5
> stocks I routinely trade.
>
> Best,
>
> Yuki
>
>
> Yahoo! Groups Sponsor
> ADVERTISEMENT
>
>
>
>
> Send BUG REPORTS to bugs@xxxx
> Send SUGGESTIONS to suggest@xxxx
> -----------------------------------------
> Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
> (Web page: http://groups.yahoo.com/group/amiquote/messages/)
> --------------------------------------------
> Check group FAQ at:
http://groups.yahoo.com/group/amibroker/files/groupfaq.html
>
> Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy No Snore & Get a Good Night's Sleep. Natural Oral Spray -- $24.95
(1 bottle, 1 month supply, with sweet almond oil, eucalyptus oil & more).
http://www.challengerone.com/t/l.asp?cid=2881&lp=h515.html
http://us.click.yahoo.com/2oMABA/nuYGAA/ySSFAA/GHeqlB/TM
---------------------------------------------------------------------~->
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|