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MEDTOX Scientific, Inc. (TOX) Message Board

  • advocateone advocateone Dec 28, 1998 7:52 PM Flag

    Institutional criterion

    While I can't say what criterion might be used,
    the simple fact that a price is above x does not do
    anything to bring institutions in. I do know they look at
    many things, and one very important thing they look at
    os what they can know of the intentions of
    management. If managements intentions are not clear they do
    not buy.
    You might try looking at Peter Lynch's
    books(formerly managed Fidelity Magellan, and most important
    everyone's Bible Benjamin Graham and Christopher Dodd's
    SECURITY ANALYSIS

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    • Could also be shares that are being "longed" to
      accommodate a positive split vote, and those shares may be
      used to short against as the stock comes down before
      and after the vote. Could be. I bet you'd never be
      able to prove it!!!

    • The fund was not listed anywhere that I could
      find. But you are right, it is interestingand I also
      believe that Braun and the boys have mustered similar
      support in the Minn-St Paul area which we will see before
      and after the split.

    • "While I can't say what criterion might be used,
      the simple fact that a price is above x does not do
      anything to bring institutions in."

      You are
      correct, but you forgot to mention that a stock price
      below x can absolutely restrict an institution from
      buying.

      • 1 Reply to beenbetter
      • I wish to take issue here.

        Actually,
        institutions have no constraints so far as securities being
        low priced. These constraints come up where naive
        investors are involved and unsuitability etc might be
        argued. Institutions are "smart money", and they do not
        care if a stock is low priced. In fact they are more
        inclined to buy when noone else can in retail. "supply" is
        allways an issue with institutions, the availability of
        the number of shares that they need.

        I know of
        a multibillion dollar institution which took an
        interest in TOX at .25. They were not bothered at all by
        the price, in fact encouraged by availability of
        shares with no competition for them(little). They were
        not bothered at all by the prospect of a reverse
        split, they were not afraid of that. Their objections to
        it lay elsewhere.