Institutional Ownership percentage, does it matter?

Discussion in 'Trading' started by Debaser82, Jun 26, 2009.

  1. If you look at say the top 5 goldminers in the world...

    AngloGold Ashanti has a 30% Institutional Ownership percentage.

    Barrick has a 65% Institutional Ownership percentage.

    Does this makes Barrick a 'safer' bet?

    Or does it means Barrick is already saturated?

    Thanks for any replies.
  2. 1) "Low" institutional ownership is "better" during a bull market because institutions may eventually stampede into the stock at "higher" prices.
    2) "High" institutional ownership is "worse" during a bear market because institutions, by law, may have to sell-out of the stock when it hits $10/share and $5/share bringing about a "large", expected, cascade of selling at those prices. :cool: