When companies you’re invested in are doing fine in the world of business–whether from healthy books, fast growth, great partnerships or strategic acquisitions–yet their share prices keep going down, it’s time to check Fintel.
Because if institutional investors are buying, this signals a deliberate attempt to drop share price so the Big Fish can buy on the cheap. It’s also a great indicator (aka “tell”) that there will be a short squeeze at some point and the stock will go back up, often very quickly.
Three recent examples of this behavior involve Magnite (MGNI), Digital Turbine (APPS) and Viant Tech (DSP). All were brought down drastically, but a quick check on the Fintel page shows that institutions kept on buying in big lots. They hope that retail investors see the big decline and will panic sell their holdings… which they then scoop right up. Check link below for Viant’s Fintel page, hit the Owners tab and then select the Institutional Owners drop down menu option. You’ll see a whole lot of buying going on.
“The stock market is a device for transferring money from the impatient to the patient.” –Warren Buffett