what to market wants to hear, page-25

Well the ability of BLK to raise $35 million relatively easy in Feb suggests their is still a big appetite among institutions for these small cap gold stories. We also saw that with the ease with which GCY and DCN got their issues away. For larger cap stocks, institutions often buy issues purely at a discount to flip them and make a risk free few percent. But for small caps like BLK, the liquidity risk is too high to do that. You must actually like the story.

That said, while institutions may have better access to management and so on, they are a lot slower and can get stuck in positions when the strategic story genuinely changes. Some institutions got crucified in MML for example. This is one advantage the little guy has. When the story changes, you are not wed to your position and can get the hell out. I've had a great 12 months, but in the course of that 12 months have been a holder of such dogs as MML, TRY, PRU and DCM. Those holdings haven't offset my winners because I am out whenever I sniff something has really changed. I don't see that in BLK. Story looks intact to me. But I never marry my positions, so time will tell.