Who are the "most important" investors in a stock?

[viciam]

I read this extract in a link posted by a regular member on this forum.

"Every CEO knows that when buyers are more anxious to buy than sellers are to sell, share prices rise�and that they fall when the reverse happens. But fewer CEOs know that not every buyer or seller matters in this equation. Our research on the changing stock prices of more than 50 large US and European listed companies over two years1 makes it clear that a maximum of only 100 current and potential investors significantly influence the share prices of most large companies. By identifying these critical individual investors and understanding what motivates them, executives can predict how they will react to announcements�and more accurately estimate the direction of stock prices."

So the question I have is how to find out who the "most important" investors are in the stock that I am looking into.

I'm hoping someone will have the know how to answer this question on this forum

Thanks in advance

 

[tech/a]

Re: Can someone explain this to me?

Something I doubt will be helpful to the regular punter.

Largest holders come to mind.
Those potential large holders who show interest in presentations.
The statement is true for all share holders.
It's called supply and demand.
It's easily seen in charts.

 

[skc]

I read this extract in a link posted by a regular member on this forum.

"Every CEO knows that when buyers are more anxious to buy than sellers are to sell, share prices rise�and that they fall when the reverse happens. But fewer CEOs know that not every buyer or seller matters in this equation. Our research on the changing stock prices of more than 50 large US and European listed companies over two years1 makes it clear that a maximum of only 100 current and potential investors significantly influence the share prices of most large companies. By identifying these critical individual investors and understanding what motivates them, executives can predict how they will react to announcements�and more accurately estimate the direction of stock prices."

So the question I have is how to find out who the "most important" investors are in the stock that I am looking into.

I'm hoping someone will have the know how to answer this question on this forum

Thanks in advance

Useless piece of research if you ask me.

- CEO's should not be worried about the share price. Unless the CEO is trying to raise fresh capital... get the company right and the share price will follow. Plenty of work for CEO's to do even if the company is not listed (hence no share price).

- Is it any easier to predict the behaviour of 100 "important investors"?

- Even if the CEO can understand what motivates these "important investors"... what the hell are they going to do with that information? Change the content of their announcements?

- As to the average punter - also useless because even if you know who these individuals are you can't access their brains.

- My guess is for Australia pick the top 50 mutual funds and they are the ones they drive most movements in share price... now try to predict what they are thinking!

 

[So_Cynical]

Who are the "most important" investors in a stock?

Its an interesting question really.

Thinking about it i...i think it depends on the moment in time your looking at the "stock" sometimes its the buyers, sometimes the sellers (why are they buying and selling?) sometimes its a substantial holder accumulating or disposing...or a new substantial holder, directors, founders....it all depends on the broader goings on and sentiment and a 100 other things.

Personally when i look at a new stock i like to see substantial holders (individuals), some one sticking their neck out, i like founders and i like instos...but that's to do with my agenda.

 

[viciam]

Its an interesting question really.

Thinking about it i...i think it depends on the moment in time your looking at the "stock" sometimes its the buyers, sometimes the sellers (why are they buying and selling?) sometimes its a substantial holder accumulating or disposing...or a new substantial holder, directors, founders....it all depends on the broader goings on and sentiment and a 100 other things.

Personally when i look at a new stock i like to see substantial holders (individuals), some one sticking their neck out, i like founders and i like instos...but that's to do with my agenda.

Thanks for the reply guys,

Could you please explain the above a little clearer please? How do you see the substantial holders?

 

[So_Cynical]

Thanks for the reply guys,

Could you please explain the above a little clearer please? How do you see the substantial holders?

Every annual report will list the top 20 holders, usually on the last 3 or 4 pages...the top 20 usually hold over 50% of all the issued stock.