CAN SLIM(13)

Institutional Sponsorship


Mutual funds and other professional investors represent the vast majority of trading activity in the market.

As such, they wield tremendous influence over stock prices, capable of sending their favored stocks up significantly.

Here, you'll learn how to spot stocks benefiting from "institutional sponsorship."


Winning Characteristics


A stock should show an increasing number of institutional sponsors in recent quarters (accelerating sponsorship).


A stock should have at least several institutional owners.

If there is no institutional sponsorship, it is likely the performance will be more run of the mill.


You want stocks owned by the most successful money managers, the ones who have a proven record for consistently selecting top-performing stocks at the right time.


Consider giving greater weight to those stocks being bought by top-performing mutual funds, either as new positions or add-on purchases.