Seeking Alpha

Nokia investing $100M in smart car tech

  • Flush with Microsoft cash, Nokia (NOK -1%) says its VC arm plans to invest $100M in companies developing computing and communications technologies for cars.
  • Presumably, Nokia is counting on the investments to strengthen the ecosystem for its Here unit, which has a sizable chunk of the automotive mapping/navigation market. Nokia launched an embedded infotainment platform (Here Connected Driving) last year, and is also working on offering location-based services for cars.
  • The effort comes at a time when competition is intensifying: Apple launched its CarPlay platform (pairs iPhones with in-dash automotive systems from various OEMs) in March, and Google is partnering with automakers to bring Android-based in-dash systems to market.
Comments (73)
  • Timothy Bryan
    , contributor
    Comments (810) | Send Message
     
    Good to see Suri doing some attention grabbing, as opposed to the nothingness of prior management....
    5 May 2014, 01:09 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    Agreed !
    5 May 2014, 01:29 PM Reply Like
  • robiniv
    , contributor
    Comments (390) | Send Message
     
    They might even hit the jackpot one day
    5 May 2014, 02:13 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Nokia has a problem I've seen, in my short market career of one year, in that it has all of this technology that it invests in, but can't make any money from it--while competition eats it alive.

     

    It doesn't matter how good your technology is unless you can sell it. That's Nokia's problem currently: They have no consumer vision.

     

    Case point: "Flush with Microsoft cash, Nokia (NOK -1%) says its VC arm plans to invest $100M in companies developing computing and communications technologies for cars."

     

    I have a better idea--why not produce a product that car makers want to buy?
    5 May 2014, 02:53 PM Reply Like
  • Freddo70
    , contributor
    Comments (29) | Send Message
     
    Which competition?
    5 May 2014, 03:51 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Apple and Google.
    5 May 2014, 05:45 PM Reply Like
  • Freddo70
    , contributor
    Comments (29) | Send Message
     
    But competing against what? Apple maps? Google Maps? Google Drive? Google autonomous driving software? ITunes ecosystem? Android ecosystem?

     

    Curious to see how all three will start making money within the Automotive B2B space. For now HERE is only one convincing the Automotive to license their products for premium, feels like Apple and Google still need to sponsor the automotive with free support and licensing models in order to be granted first and in many cases, quite modest, implementations.
    5 May 2014, 07:29 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    All of it Freddo. Apple just released their whatever they call it music thingy that is like Nokia Music that goes in cars, and will even complete with Sirus, as I understand it.

     

    Nokia has an app called, well forgot, but it's a free app where you can stream music free. There is a pay version that offers more too. They want that incorporated in their automotive deals seamlessly, but Apple has something similar to it also.

     

    Think of it as that STUPID hole in your car deck that says "iPod." Nokia wants it to say "Nokia" instead, metaphorically speaking.
    6 May 2014, 02:28 PM Reply Like
  • Freddo70
    , contributor
    Comments (29) | Send Message
     
    That streaming music stuff went to Microsoft.....

     

    http://cnet.co/1itb66t

     

    This seems to goes way beyond some sexy B2C music or search apps and with Nokia already powering nearly all navigation systems in that market they already have a foot in the door to expand.
    7 May 2014, 07:38 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Freddo

     

    So that actually got sold completely to MS? Oh my, sad news. MS will destroy it.

     

    Thanks for that information. I was completely unaware that Nokia sold Mix Radio to MS.

     

    I'm sad about that. I saw that as a net plus for Nokia.
    8 May 2014, 02:36 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    Turn on. Tune in. Drop out.
    8 May 2014, 03:23 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    hahahaha.

     

    Nokia Mix: Turn on! Tune In!
    MS Mix Radio: Drop out.

     

    They will probably sell it to Apple.
    9 May 2014, 03:24 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    Apple is rumoured to buy this silly headphone company for over $3bn. I mean, two years ago, this plasticky stuff was hip with my students. But now? What is Tim Cook thinking? Maybe it remains a rumour. I hope so. If true, it will tank AAPL stock a few percent, just for the stupidity of going after a yesteryear gadget business.
    9 May 2014, 03:43 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    They are doing what MS did so well in the 90s: Buy out competing interest, and kill them.

     

    You think Tim Cook enjoys seeing people plugged into iPHones with Beats Electronic head phones? Really bad news. What next, Beats Phones?

     

    Better to spend 3.2 billion now, and make it back later. Or, that's how the thinking goes. How's that working for MS?

     

    I remember when, in the early 90s, MS bought out the best FREE team oriented software, where you could talk to others when you were playing a game. At the time, it was nascent technology.

     

    Well, of course, MS totally screwed it up beyond use, and started charging for it. Enter Team Speak, Vintrillo, ICQ and many others that were and still are far superior to anything MS has--and free.

     

    Why? Because MS was never a real innovative company, other than making the best word processor. Apple, well, they have been buying time ever since MS kicked them in the teeth with DOS. Now, they are like MS--fully saturated market without innovation. Last option: Kill competition.
    9 May 2014, 05:49 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    I have to cross-post my comment from an Apple thread:

     

    So, something as mundane as plasticky, sound distorting, already out of fashion headphones - around since 1910 - are in the glitzy innovative "wearable tech" category now? I have a "smart di-hydgrogene-oxide thermodynamic device" in my kitchen - a kettle with mechanical timer.

     

    As an Apple long, I am most bewildered by the rumour, by the thought that Apple would even consider looking at buying a business with only 200k subscribers, whereas Spotify has 10m paying customers and Apple themselves have 800m Apple IDs and iTunes. Why Beats Electronics should be worth $3.2bn - with HTC having paid only 300m - for no discernible reason is beyond my understanding.

     

    This silly company is competition? For whom? For what? Streaming audio? No. Headphone companies? No. Normally Apple buys clever companies that in the long run add value to their products, like they did so well when they bought PA Semi in 2008 for just $278m, the core for Apple's success since then.

     

    I hope the FT article was only rumour mongering.
    9 May 2014, 06:28 PM Reply Like
  • robiniv
    , contributor
    Comments (390) | Send Message
     
    Maybe Apple sees something in the brand, targetted at youngsters where the Apple brand itself is not so cool as it is with midlife struglers. Otherwise it doesn't make sense indeed. Not at this price
    10 May 2014, 05:32 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    They bought it because Apple is one big "fad" and they understand the threat of "fad changes." "Beats" is sooooo cool! Time to kill it.
    10 May 2014, 06:16 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    rob

     

    That's it indeed.
    10 May 2014, 06:16 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    bleats 'lectronics...

     

    …resonate with the chavs and suburbian unwashed crowd these days that, not so coincidentally, carries oversized white Samdungs.

     

    Again: $3.2bn for 200k subscribers, where Apple already owns 800m IDs? Apple's board must have been in Uruguay or on Ambien last week to authorise such nonsensical purchase.
    10 May 2014, 06:40 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    Actually they were counting out $3.2bn from their cash island overseas :)
    10 May 2014, 07:04 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    The reason you do not understand this is proven by your comment: "bleats 'lectronics"

     

    If you understood the acquisition, you would have stated it: "L33T 3lectro"

     

    Fads change and Apple has been riding the Fad for far too long--they are considered "old people" by today's young who are just jumping at a chance to get to the next L33T fad, and get out of the old, and very uncool, people's computer company.
    10 May 2014, 08:56 PM Reply Like
  • robiniv
    , contributor
    Comments (390) | Send Message
     
    Or even better, just ask BMW, Mercedes & co what product they want, and just make it with Nokia quality
    5 May 2014, 02:57 PM Reply Like
  • pbecke
    , contributor
    Comments (32) | Send Message
     
    Does anyone know if nokia is developing technology for self driving cars? A recruiter recently contacted me about developing real time software for nokia related to auto navigation. While strict real time is not required for infotainment, it would be required to control the power plant and steering of a vehicle.
    5 May 2014, 04:12 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    pb

     

    They have been for a long time.
    5 May 2014, 05:46 PM Reply Like
  • Cannalyzer
    , contributor
    Comments (12) | Send Message
     
    That's the kind of useful comment I like tlo see here on SA. Thanks for sharing.
    6 May 2014, 02:28 AM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Sorry, Cann, I don't want to go do research and post links. Look it up yourself.

     

    Google: "Nokia self driving cars"
    6 May 2014, 02:31 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    Google? Bing, please ; )
    6 May 2014, 02:39 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    Yeah dw. What's up with that ?
    6 May 2014, 03:54 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    You guys are really going to waste my time having me Google the links? Lame asses--lol.

     

    http://bit.ly/1g6d6l4
    http://bit.ly/1g6d4cT
    http://bit.ly/1g6d4cV
    http://bit.ly/1g6d6l8

     

    My internet connection is very slow today, so I'm not going to wait 3 minutes for each link to come up. Or, I would post more.
    6 May 2014, 04:17 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    dw,lol, Bing it, not google........
    6 May 2014, 04:52 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    I told him to Bing it like Ballmer. To no avail. I have the suspicion he's not a Lumia owner and may even be a clandestine Applocrat.
    6 May 2014, 05:30 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    Oh no, say it ain't so dw !
    6 May 2014, 07:26 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    The only thing I hate worse than Apple is MS. And I hate BING. Too much garbage on that search engine.
    6 May 2014, 08:35 PM Reply Like
  • alphaRAJU
    , contributor
    Comments (446) | Send Message
     
    You guys need to remember this is the third ecosystem. Needs lot of development in some vertical markets. Lots of brainstorming required. Thus spending $100M is necessary. Agree that sales team needs a kick in the pants. No LOL.
    5 May 2014, 04:45 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    alpha

     

    That is true 100%. This is so advanced that it pushes the limits of known technology. Still, there needs to be some sort of revenue stream, or it continues to eat money.
    5 May 2014, 05:47 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    Mr. Market eats NOK. $7 more likely than $10.
    5 May 2014, 05:57 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    I know, I agree, retail is selling off just like you did. Looking at orders, it's definitely retail selling off and getting out.
    6 May 2014, 02:50 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    They should have sold earlier. Too much negative longer-term news since the beginning of this year. Lousy contracts. No strategy. No storytelling that will excite. Dead money since October 2013.

     

    Nokia needs excitement: a takeover, being taken over, a joint-venture, a sale of HERE, just something that makes more sense than Rajiv Suri upholstering his Finnish birch Espoo lounge benches with wads of cash. Holding too much cash, at these interest levels, is a lame game.

     

    Let's hope he does something unexpected and clever, something a bit grand. If investors want to own a boring stock, they could better just as well buy BASF, BMW, HPQ, IBM or whatever.
    6 May 2014, 04:26 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    They don't have enough cash to buy anything, except the dead and dying carcass of ALU, which would not be profitable for them anyway. I guess they could buy Blackberry and start making phones again under the BB name, so as to skirt the MS contract. That would be stupid, but the price would probably soar on that stupid acquisition. Probably hit $40.00 due to BB shareholder irrational exuberance.

     

    BBRY trades higher than Nokia--now go figure that one out. Really Mr. Market? BBRY is worth more than Nokia? Seriously?

     

    You know, until the BB crowd learns that Nokia is a smelly and boring stock carcass.
    6 May 2014, 08:39 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    Lackberry is a short sell candidate. It is only propped up by irrational kamikaze investors that are willing accomplices to help Prem Watsa extract some value from the Waterloo landfill. They follow the masochist's strategy to investing which is to "buy on the dips" all the way to $0. Shareholder's Munchhausen By Proxy syndrome has afflicted them.
    7 May 2014, 12:59 AM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    ""buy on the dips" all the way to $0. " One of your better ones! LOL
    7 May 2014, 03:12 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    One dip to rule them all, one dip to blind them,
    One dip to ruin them all and in the darkness bind them
    7 May 2014, 03:48 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    AH

     

    I think you should buy at least ONE share of Nokia on the dip.
    7 May 2014, 05:21 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    One share of the big dipper? And then... what? I couldn't even put it up on my office wall.
    7 May 2014, 06:22 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    Laminate it put it on your desk as a place mat for your White 920 :)
    7 May 2014, 07:08 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    I never got the free charging mat with the first seven Lumias I eventually returned and later the WHITE Lumia 920 I use now : (

     

    But I feel like I'm a man enough to handle extra cabling. It made me a stronger person all around : )
    8 May 2014, 01:16 AM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    So you can say, "Hey I have skin in the game!"
    9 May 2014, 03:25 PM Reply Like
  • Andreas Hopf
    , contributor
    Comments (9989) | Send Message
     
    Plastic more like.
    9 May 2014, 03:44 PM Reply Like
  • sidiji
    , contributor
    Comments (194) | Send Message
     
    One thing Nokia has that those others don't...the IP portofolio.
    15 May 2014, 03:29 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Sid,

     

    Thanks for pointing that out. The price will probably fall below $7 tomorrow.
    15 May 2014, 03:50 PM Reply Like
  • Timothy Bryan
    , contributor
    Comments (810) | Send Message
     
    AH,
    Long term we are in good shape at NOK, but with all these catalysts and no movement it would seem you are right this is not going to take off any time soon.
    5 May 2014, 09:00 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Nope, no movement. I mean we have had nothing but above average good news, including the last announcement, and down it goes.

     

    If one could hold a year, one may be handsomely rewarded, maybe even a double baggar.
    6 May 2014, 02:51 PM Reply Like
  • robiniv
    , contributor
    Comments (390) | Send Message
     
    Nokia will have to prove they can make money of all things going on now. Meanwhile I think the stock is gonna creep up silently, a bit like MSFT did. I bought that stock around 1.5 year ago at 28 and without ever feeling I had a winner, I made a good profit. I'm holding a sunstantial amount NOK shares since end 2012. I have been holding them as I tought closing of 'the deal' would bring another jump, but even though it didn't, I don't see a reason to sell, nor to go ironic about it's performance
    6 May 2014, 03:40 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    One reason is that you needed capital in other places. If you don't need it and are willing to go another two years, then the outlook, in my opinion, is favorable.
    6 May 2014, 03:52 PM Reply Like
  • robiniv
    , contributor
    Comments (390) | Send Message
     
    Well if it's actually going to creep up, the only way to take that profit is by holding the money there along the ride. I'm pretty confident that in another 2 years holding Nokia I will have made as much profit as I would have done by jumping in and out other opportunities. Everybody must make its own evaluation of the odds of course.
    6 May 2014, 04:14 PM Reply Like
  • Benicato
    , contributor
    Comments (9) | Send Message
     
    Por estimar queuede interesados.
    Have a nice yeoductovo Day.!
    6 May 2014, 03:14 AM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Just wanted to post this again:

     

    BBRY trades higher than Nokia. It just makes me want to yell the F word as loud as I can, just in disbelief.
    6 May 2014, 08:42 PM Reply Like
  • BBcool
    , contributor
    Comments (615) | Send Message
     
    Dw,

     

    Im not sure what you're trying to get out here by leaving the splits out of the equation
    12 May 2014, 02:33 AM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Just

     

    BBRY> NOK

     

    is all you need to know.
    12 May 2014, 08:35 PM Reply Like
  • sidiji
    , contributor
    Comments (194) | Send Message
     
    3 major upgrades by Moodys, Fitch, S&P...and not a single mention on this 'breaking news' bulletin? Whoever SA has running this page for Nokia is useless or very lazy.
    15 May 2014, 02:45 PM Reply Like
  • BBcool
    , contributor
    Comments (615) | Send Message
     
    Im upgrading it too. there you go.
    15 May 2014, 02:50 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Sid

     

    Good point. I don't get it. Actually, it's probably a feed they haven't implemented. Either way, it is remiss.

     

    However, it's probably better they don't report it, as upgrades in credit ratings have a way of reducing SP lately.
    15 May 2014, 03:24 PM Reply Like
  • BBcool
    , contributor
    Comments (615) | Send Message
     
    No news is good news. nothing more needs to be seen.
    15 May 2014, 04:32 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    No big deal; all you need to now about institutional holdings:
    http://bit.ly/HU7OO4

     

    Until they get higher than 11%, yawn.
    16 May 2014, 01:30 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2030) | Send Message
     
    The institutional ownership is way higher than 11%. All Nasdaq etc info only considers shares in NYSE ($NOK), although 78% of Nokia shares are traded in Helsinki ($NOK1V).

     

    For full analysis of the institutional ownership including both, see here:
    http://bit.ly/1nUdbha
    16 May 2014, 08:15 AM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2030) | Send Message
     
    The total institutional ownership of Nokia at the end of Q1 2014 was at least 21.64% of the float (~810M shares):
    http://bit.ly/1nUdbha
    16 May 2014, 09:44 AM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Seppo, that's really quite a bit. So much for institutional investors driving up price. Well, I guess the institutional holding of ADRs could rise, and that could affect SP.

     

    Thanks, again, as usual. (I knew that there was that discrepancy between ADRs and total float, but overlooked it.)

     

    One question: How much of that %age is Finnish institutions? If it is substantial, we could still see a rise in SP is US institutions behind buying, on top of European holders.
    16 May 2014, 02:54 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    "On the other hand on the sell side, considering institutions that sold more than 5M shares in Q1, FMR (i.e. Fidelity) sold 15M shares (now at 3M shares), Waddell & Reed sold 7M shares (now at 0), CMT sold 6M (now at 0), Orbis sold 6M shares (now at 0), and Viking sold 5M (now at 0). - See more at: http://bit.ly/RIGR5C"

     

    Good post Seppo!
    16 May 2014, 03:02 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2030) | Send Message
     
    I do not have an exact number.

     

    ~10% of the float is owned by institutions in Helsinki Stock Exchange. Some of those institutions are foreigners though. On the other hand I do not see any Finnish institutions owning in NYSE at scale. So with that I would estimate that less than 10% of the institutional ownership is in Finnish hands.

     

    Note also that roughly half of all the available shares in NYSE are owned by institutions already. With that for example Dodge & Cox has been forced to buy in Helsinki to get the number of shares it wanted.
    16 May 2014, 05:13 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    "Note also that roughly half of all the available shares in NYSE are owned by institutions already. With that for example Dodge & Cox has been forced to buy in Helsinki to get the number of shares it wanted. "

     

    You mean other than retail shares?
    17 May 2014, 05:17 PM Reply Like
  • Seppo Sahrakorpi
    , contributor
    Comments (2030) | Send Message
     
    @dw In short yes, but as always, it is a bit more complicated... :)

     

    What I mean is that the so-called "institutional ownership" in NYSE is 11.34% of the total float, i.e. ~425M Nokia $NOK ADR shares. Now, there is total of ~818M Nokia ADR shares available in NYSE:
    http://bit.ly/1nUdbha

     

    That is, 51.9% of all Nokia ADR shares trading in NYSE are owned by "institutions" already.

     

    As a side note, large majority of Nokia shares are available/trading in Helsinki Stock Exchange. ~2926M to be precise. Under the ticker $NOK1V. As a whole there are around 3744M Nokia shares (2926M+818M).

     

    So, any North American institution that wants to buy more Nokia at large scale either has to try to buy on not very liquid NYSE market, or simply go to Helsinki, where there is plenty stock available (as D&C has done).

     

    So what exactly is the definition of "institution" in NYSE? Basically all these institutional ownership numbers are simply pulled by aggregating mandatory SEC 13-F filings. Any institution or entity that has to file 13-F is thus considered and counted towards institutional ownership by Nasdaq etc.

     

    A definition of "institution" in institutional ownership is thus (per Investopedia):

     

    ...[13-F is] A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment Managers Form. It is a quarterly filing required of institutional investment managers with over $100 million in qualifying assets. Companies required to file SEC Form 13-F may include insurance companies, banks, pension funds, investment advisers and broker-dealers. This form, which must be filed within 45 days of the end of each quarter, contains information about the investment manager and potentially a list of their recent investment holdings...

     

    http://bit.ly/1mG1H1d

     

    So, the answer to your question is 'yes', if we define anyone w/ less than $100M in assets as 'retail' :)
    17 May 2014, 06:34 PM Reply Like
  • La Rue
    , contributor
    Comments (800) | Send Message
     
    That's most definitely me. :)
    17 May 2014, 07:35 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9452) | Send Message
     
    Seppo,

     

    OK so the answer is really,"no." We're talking about total float, which includes retail. If institutions don't want to buy on the NYSE because of liquidity, that means they don't want to drive up price as they buy. And, since institutions own over 50% of the NYSE float, prices would go up if they started buying large numbers. Which brings me to my next question:

     

    If institutional ownership increases in Helsinki, then they will be forced to buy in a low liquidity market, which will drive up prices?

     

    So, institutions can still drive up price, but they are going to need to start buying, like we've always said, and a lot more than they are right now. I'm wondering when the feeding frenzy pyramid will take part, where institutions start buying in order to jack up the price where they can make some fast cash selling off some of their earlier positions?

     

    You would think these people want this pig to start flying ASAP, and would start buying ASAP to get that movement.
    17 May 2014, 08:25 PM Reply Like
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