Also, stocks in this group are relatively illiquid because of their heavy institutional ownership.

Venda is privately held with individual, private equity and institutional ownership.

Mr. Galbraith found that nine months after an offering, institutional ownership amounted to around 10 percent.

He noted that institutional ownership of many biotechnology companies had dropped since the market crash.

The list looks at institutional ownership and expects companies to have at least two years of positive earnings.

The institutional ownership was down only $596 million, to 110.7 billion.

His other criteria include a strong balance sheet, limited institutional ownership, robust earnings growth and a healthy business niche.

Most well-known stocks have at least 40 percent institutional ownership.

Peter Lynch uses the degree of institutional ownership to gauge market interest.

To draw an even deeper line in the sand, focus only on stocks with less than 10 percent institutional ownership.