OMS, initial and low institutional ownership is desirable, because as AKK grows other funds will want to buy into it. This upward pressure will help boost the stock price.
Institutional investors tend to look for stocks that give beneficial returns to the money invested. Additionally, they prefer companies that provide good potential for growth which in AKK's circumstance is not hard to see!
On the other hand, institutional investor may destroy the price of a stock if it decides that it no longer provides investment incentives to hold it. Other investors may follow this lead and the price of the stock may be destroyed.
There are a few points that need to be remembered in these harsh and volatile times.
The bad: 1) Institutional investors have sold down and decreased there risk in many stocks.
2) The market is extremely sensitive at the moment and will likely be for the next 12-18 months. (from US reports)
3) Reports from the US indicate that more banks are likely to fail to the credit crisis, which means that we have not yet "bottomed out"
The Good: 1) Institutional investors will look to buy into under-priced, profitable small caps with good potential growth (AKK is a certain for this IMHO)
2) Broker reports to be released at the end of the month which provide exposure to investors keen to enter into a bear market and into stocks with "institutional backing"
3) Remember that the next 6 months is prime for AKK to perform. First sales of gas have just started (as announced), obviously winter in the late part of the year which means increased gas usage, and the next 2 quarterly 's should show healthy bank balances as a result of these factors.
IMO AKK is primed to make a significant turnaround of events we just need the market to respond and investors to realise it's potential. As we have seen, potential is not good enough for today's market and positive figures dictate how a particular stock performs that's why it is important that AKK gets the ball rolling and i think that they realise this.
TW
DYOR
AKK Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
