When an Institution Increases a Holding, How Do They Do It?
I do not know for sure but if I was making the decision I would balance transaction cost savings against the basis lose in a price up tick. With that in mind the best buy is purchasing in large lots. However, they are subject to the same supply and demand as everyone else. The demand might exceed the supply requiring smaller lots over longer time. Anyway that would just be the way I would approach the problem. I often bring the wrong logic to a problem.
I am curious. Why do you think this is an institutional move rather than the normal run up between a declared dividend and an ex-dividend date?
@casey, it hasn't been my experience that you often bring the wrong logic to a problem. Instead, I see a guy with excellent reasoning skills who combines the attractive trait of modesty with his intelligence (plus a sly wit).
Heh, well, before this starts sounding too much like a dating post, I'll add that on the potential runup before the Ex Dividend Date, that's a good idea as a potential cause, but during the last two quarters I've been watching carefully for any kind of price trading pattern around the divy dates with an eye towards trading them, but I haven't seen price moves of more than a few cents, certainly nothing like .28.
You seem to like to flatter people with reasoning skills less than your own. That's the only reason that I can come up with for why I have not received a similar compliment. If you give the same compliment to Stockboy I'll know the game is rigged.
I will go with your conclusion. Someday it will happen. This might be the it day. Where it is the day the stock moves to a reasonable valuation. My only hesitation is the up tick is clouded by other new news, the dividend. A valuation of 6 to 8 is not close to a reasonable valuation for the company. It is closer to a fair valuation.