Is It "Overowncd" by Institutions?

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Is It "Overowncd" by Institutions?

A stock can also have too much sponsorship and become "overowned." Overowned is a term we coined and began using in 1969 to describe a stock whose institutional ownership had become excessive. In any case, excessive sponsorship can be adverse since it merely represents large potential selling if anything goes wrong in the company or the general market. On the other hand, Snapple, in April 1993, was underowned.

The "favorite 50" and other lists of the most widely owned institutional stocks can be rather poor, and potentially risky, prospect lists. By the time performance is so obvious that almost all institutions own a stock, it is probably too late. The heart is already out of the watermelon.